Where a gift is in the form of a single transfer to the same person of several things of which one is, and the others are not, burdened by an obligation, the donee can take nothing by the gift unless he accepts it fully.
Where a gift is in the form of two or more separate and independent transfers to the same person of several things, the donee is at liberty to accept one of them and refuse the others, although the former may be beneficial and the latter onerous.
Onerous gift to disqualified person.—A donee not competent to contract and accepting property burdened by any obligation is not bound by his acceptance. But if, after becoming competent to contract and being aware of the obligation, he retains the property given, he becomes so bound.
Legal Commentary & Landmark Judgments: Section 127
Section 127 codifies the law regarding onerous gifts, establishing that where a gift comprises a single transfer of several things of which one is burdened by an obligation, the donee can take nothing unless he accepts it fully, while allowing separate acceptance of distinct transfers.
If gifting valuable land alongside heavily indebted commercial property in a single deed, the donee cannot cherry-pick the unencumbered land; they must accept both or reject both under Section 127(1).