BUSN201- M03 Discussion - Engagement Ring
Some states hold that an engagement ring is a conditional gift that becomes an absolute (effective) gift only on marriage. Other states conclude that when an engagement ring is given to the donee, the donee should have full ownership rights in the property.
· When the ring is accepted is it now a contract?
· What is a conditional gift?
· What is your state's stance on this subject? Do you agree or disagree?
· Where do you stand on this issue? Why?
Watch this video that talks about whether an engagement ring is a gift not to be returned or a conditional gift based on a contract / condition. It is a California attorney that talks about the law in California, Texas, and other states.
1. When an engagement ring is accepted I do not think that it is a legally binding contract. It is merely a tradition. Do the majority of engagement rings given out result in a marriage? Yes they for sure do, but just because there is a ring involved, does not mean that a contract has been signed by either party.
2. A conditional gift is a gift that is given in hopes that something will come from the gift. The perfect example of this is an engagement ring.
3. Living in Indiana, engagement rings are considered as a conditional gift. If the couple does not get married, then the receiver of the ring will give the ring back if the person who gave it wants it back.
4. I think this is a necessary law. If you give out a ring, they are usually very expensive, in hopes that you will be getting married and that doesn't happen, then you should be allowed to get that investment back. Its tough already if you aren't getting married, but to add that you would also be out a few thousand dollars on top of it is just nightmare inducing.