Chhaya and Abeer are very good friends. On Chhaya's birthday Abeer gifted an I-Phone worth ₹ 1.35 lakh. Whether this gift is valid as per provisions of the Indian Contract Act, 1872?

Completed gift: According to Section 25 of the Indian Contract Act, 1872 an agreement made without consideration is void. Further explanation 1 to Section 25 states that nothing in this section shall affect the validity, as between the donor and donee, of any gift actually made. In case of completed gifts, the rule of no consideration no gift does not apply. Thus, gifts do not require any consideration. In the instant case, the gift of I-Phone from Abeer to Chhaya has already been done, which amounts to 'Completed Gift' and is covered by explanation 1 to Section 25. Hence, gift given by Abeer to Chhaya is valid.