Quoted from Sharon:I think if you gifted something via PP and it didn't work out, if you had the email chain saying that the gift was in exchange for something, you would still be okay.
Absolutely not. When you send the money as a gift, you give up any type of buyer protection from PayPal. The whole reason people gift the money in the first place is to avoid the fees. You can't have your cake and eat it to. If you circumvent the PayPal fees, you are on your own if something goes awry with the transaction.