A conditional gift in contract law is an item given with the stipulation that a particular event or condition must occur. If the condition is not met, the gift may be reclaimed by the giver. In contrast to an unconditional gift, which is final, a conditional gift hinges on an ‘if’ scenario.
For example: John gives Mary a car on the condition that she graduates from college within four years. If Mary doesn’t graduate within this timeframe, the car must be returned.