The donor and donee may agree that on the happening of any specified event which does not depend on the will of the donor a gift shall be suspended or revoked;
but a gift which the parties agree shall be revocable wholly or in part, at the mere will of the donor, is void wholly or in part, as the case may be.
A gift may also be revoked in any of the cases (save want or failure of consideration) in which, if it were a contract, it might be rescinded.
Save as aforesaid, a gift cannot be revoked.
Nothing contained in this section shall be deemed to affect the rights of transferees for consideration without notice.
Legal Commentary & Landmark Judgments: Section 126
Section 126 of the Transfer of Property Act, 1882 governs the suspension and revocation of gifts, prohibiting unilateral revocation at the donor's arbitrary will while authorizing revocation on agreed contingencies or contract grounds.
Donors frequently regret family gifts and execute unilateral 'Cancellation Deeds' at the Sub-Registrar's office. Settled Supreme Court law under Section 126 dictates that unilateral cancellation deeds are null and void; once a gift is complete, the donor's only recourse is to institute a civil suit under Section 31 of the Specific Relief Act establishing fraud, coercion, or undue influence.