As in many countries, in Armenia also it is a tradition to give gifts to each other on New Year. As a rule, regardless of the size and value of the gift, no written contract is signed. How is this regulated by the RA Law?
Under the contract of gift one party (the donor) without compensation transfers or undertakes the duty to transfer to the other party (the donee) property in ownership or a property right (or claim) against itself or against a third person, or frees or undertakes the duty to free it from a property obligation to itself or to a third person.
In case of a reciprocal transfer of property or a right or a reciprocal obligation the contract is not a contract of gift. The rules provided by Paragraph 2 of Article 306 of the present Code shall be applied to such a contract.
Pursuant to the RA Civil Code the contract of gift shall be concluded in written form.
A contract of gift of immovable property is subject to notarial certification.
Does this norm imply that the gift contracts must be concluded in writing?
Pursuant to Article 297 of the RA Civil Code, “Observance of simple written form is not required for transactions that, in accordance with Article 295 of the present Code, may be concluded orally.”
Whereas pursuant to Article 295, “Unless otherwise established by agreement of the parties, all transactions that are performed upon their concluding may be made orally, with the exception of transactions for which notarial form is established and transactions for which nonobservance of simple written form entails their invalidity.”
