Gift or Contract?: Gratuitous Contracts

Traditionally, gift promises are unenforceable because they are not supported by consideration.

Examples:

(1) Aunt says to niece, "Because today is your birthday, I promise to give you $1,000."
Niece says, " I accept your gracious gift." If the aunt does not pay, her promise cannot be enforced as a contract because it was only a gift promise. That is, she did not seek any return promise or action by the niece when she made her promise. There was no "bargain" between the aunt and the niece.

(2)Completed Gift Not Affected by Lack of Consideration

Note that a lack of consideration only makes a gift promise unenforceable. If the promisor has already made the gift to the promisee, the rights of the promisor potentially to reclaim it are governed by the laws of property, not of contract.