DONATIONS contradict the donative intent. Thus in Abello v. transfers ownership.

CIR ■ Donation does not need to be completed by

○ The Supreme Court held that the fact that tradition since Art. 712 prescribes that ownership
NATURE OF DONATIONS
the donors would somehow in the future and rights therein are acquired and transmitted - by
CHAPTER 1
benefit from the election of the candidate donation, succession - and in consequence of
towhom they made campaign contributions, certain contracts by tradition, thereby implying that
in no way amounts to a valuable donation is note one of the contracts requiring
Definition consideration so as to remove political tradition.
■ The Civil Code defines donation as an “act of contributions from the purview of a donation ■ Donation results in an effective transfer of title over
liberality whereby a person disposes gratuitously of as their candidate was under no obligation the property from the donor to the donee and the
a thing or right in favor of another, who accepts it.” to benefit them. donation is perfected from the moment the donor
■ “A gratuitous contract whereby the donor divest ● For donation to exist however, the intent to donate knows of the acceptance by the donee.
himself, at present and irrevocably, of the thing must be effectively carried out. A mere declaration ■ Once donations are accepted, the donee becomes
given in favor of the donee.” of an intention or desire to donate is not a donation. the absolute owner of the property donated.
■ The one who donates is called the donor and the
one who receives the donation is called the donee. Donation as “Contract” Classifications of Donation
■ Donation as a contract must contain consent, ■ Donations may be classified as to their taking effect
Essential Elements of Donation object and cause. into donations mortis cause and donations inter
■ Not every form of liberality is a donation. ■ Donation requires the concurrence of the reciprocal vivos.
■ The essential elements of donation are: consent of the parties and it does not become ■ Donation Mortis Causa - If the donation is made
○ The essential reduction of the patrimony of perfect until it is accepted by the donee. in contemplation of the donor’s death, meaning that
the donor; ■ There must be an offer from the donor and full or naked ownership of the donated properties
○ The increase in the patrimony of the donee; acceptance from the donee. will pass to the donee only because of the donor’s
○ The intent to do an act of liberality or ■ It is for that reason that donation inter vivos is death, then it is at that time that the donation takes
animus donandi. governed by the general provisions on contract and effect, that is a donation mortis causa, which should
■ To constitute donation, liberality should be strictly not under donations. be embodied in a last will and testament.
construed , and as such, donation may be defined ■ Donation Inter Vivos - If the donation takes effect
as the act of liberality by which a person Donation as a “Mode of Acquisition of Ownership” during the donor’s lifetime or independently of the
impoverishes himself by a fraction of his patrimony ■ Under the NCC, donation is one of the modes of donor’s death, meaning that the full or nake
in favor of another person who is thereby enriched. acquiring ownership. Hence, it is not simply a title ownership of the donated properties passes to the
which requires tradition (delivery) in order that donee during the donor’s lifetime, not by reason of
Donative intent or Animus Donandi ownership may be effectively transmitted to the his death but because of the deed of donation, then
● Donative intent is presumed present when one donee. the donation is inter vivos.
gives a part of one’s patrimony to another without ■ Not all contracts require tradition (delivery) to ■ Donation Inter Vivos may be classified into the ff:
consideration. transfer ownership, donation is one of those ○ Pure or simple - Cause is gratuity or pure
● It is not negated when the person's donation has contracts. liberality. Truest form of donation.
other intentions, motives or purposes which do not ■ Our Civil Code treats donation as a contract that ○ Remuneratory or compensatory - made
 for rewarding the donee for past services, deed? If Yes, then it is inter vivos, otherwise it is instrument, in order to give effect to the real intent
which services do not amount to merely mortis causa. of the transferor.
demandable debt. ■ Sometimes that nature of the donation becomes ● Settled rule is that the title given to a deed of
○ Conditional or modal - donation is made in controversial when the donee’s enjoyment of the donation is not the determinative factor which
consideration of future services or property donated is postponed until after the makes the donation inter vivos or mortis causa
limitations / conditions upon the donee, the donor’s death. However article 729 and 730 of the ● In case of doubt the conveyance should be deemed
value of which is inferior that of the donation CC provides: a donation inter vivos rather than mortis causa, in
given. ○ Art. 729. When the donor intends that the order to avoid uncertainty as to to the ownership of
○ Onerous - Imposes upon the donee a donation shall take effect during the lifetime the property subject of the deed.
reciprocal obligation; the kind of donation of the donor, though the property shall not
made for valuable consideration which is be delivered till after the donor’s death, this Importance of Distinction
equal to or more than the thing being shall be a donation inter vivos. The fruits of ■ The distinction between a transfer of inter vivos and
donated. the property from the time of the acceptance mortis causa is important as the validity or
of the donation shall pertain to the donee, revocation of the donation depends upon its nature.
Donation Mortis Causa distinguished from donation unless the donor provides otherwise. (n) ■ If the donation is inter vivos, it must be executed
Inter Vivos ○ Art. 730. The fixing of an event or the and accepted with the formalities prescribed by
■ If the donation is made in contemplation of the imposition of a suspensive condition, which Article 748 and 749 of the Civil Code, except when
donor’s death, meaning that full or naked may take place beyond the natural it is onerous in which case the rules on contracts
ownership of the donated properties will pass to the expectation of life of the donor, does not will apply.
donee only because of the donor’s death, then it is destroy the nature of the act as a donation ■ If it is mortis causa, the donation must be in the
at that time that the donation takes effect, that is a inter vivos, unless a contrary intention form of a will, with all the formalities for the validity
donation mortis causa, which should be embodied appears. of wills, otherwise it is void and cannot transfer
in a last will and testament but If the donation takes ■ To avoid confusion, we must distinguish between ownership.
effect during the donor’s lifetime or independently the actual donation and the execution thereof. ■ An essential characteristic of dispositions mortis
of the donor’s death, meaning that the full or nake ■ That the donation is to have effect during the causa is that the conveyance or alienation should
ownership of the donated properties passes to the lifetime of the donor or at his death does not mean be expressly or by necessary revocable ad nutum,
donee during the donor’s lifetime, not by reason of the delivery of the property must be made during i.e., at the discretion of the donor, simply because
his death but because of the deed of donation, then his life or after his death. the latter has changed his mind. Donation inter
the donation is inter vivos. ■ In ascertaining the intention of the donor, all of the vivos, on the other hand, once accepted, becomes
deed’s provision must be read together and from irrevocable.
How to determine one from another the intention of the parties as demonstrated by the ■ In donation inter vivos, upon the acceptance by the
■ Whether a donation is inter vivos or mortis causa circumstance attendant upon its execution. donee, the donor can no longer withdraw, and he
depends upon whether the donor intended to ■ The designation of the donation as mortis causa, or can be compelled to comply with his offering or to
transfer ownership over the properties upon the a provision in the deed to the effect that the deliver the things he wanted to donate. It may not
execution of the deed. donation is “to take effect at the death of the donor” be revoked unilaterally, or by the sole will of the
■ Did the donor intend to transfer the ownership of are not controlling criteria; such statements are to donor. The donation may be revocable only upon
the property donated upon the execution of the be construed together with the rest of the the fulfillment of resolutory conditions, or may be
 revoked only for the reasons provided on Articles ■ That the transfer should be void if the transferor donor imposes certain conditions, limitations or
760, 764, and 765 of the Civil Code. should survive the transferee. charges upon the donee, the value of which is
■ Thus, except in instances provided by the law such inferior to that of the donation given.
as the subsequent birth of children of the donor, Donation Inter Vivos ■ An onerous donation is that which imposes upon
failure by the donee to comply with the conditions ■ If the donation takes effect during the donor’s the donee a reciprocal obligation, this is the kind of
imposed, ingratitude of the donee and reduction of lifetime or independently of the donor’s death, donation made for a valuable consideration, the
the donation in the event of officiousness thereof, a meaning that the full or naked ownership (nuda cost of which is equal or more than the thing
donation is irrevocable. proprietas) of the donated properties passes to the donated.
■ If the donor reserves the right to revoke it or if he donee during the donor’s lifetime, not by reason of ■ When the obligation is onerous it is completely
reserves the right to dispose of all the properties his death but because of the deed of donation, then governed by the law on contracts. A modal
purportedly donated, there is no donation. the donation is inter vivos.As explained earlier, donation shall be governed by the law on contracts
■ Express irrevocability of a donation is a quality donation inter vivos, in turn, may be classified into: up to the extent of the burden and by the law on
absolutely incompatible with donation mortis causa. (1) pure or simple;101 (2) remuneratory,102 (3) donations as regards that portion which exceeds
■ If the donation transfers upon the donor’s death modal,103 and (4) onerous. the value of the burden imposed.
and becomes irrevocable only upon his death it is
donation mortis causa. Pure or Simple and Remuneratory Donations Importance of Distinctions
■ Generally, a prohibition to alienate means that the ■ In pure or simple donations, the underlying cause is ■ The classifications of donations into simple,
donation is of mortis causa,because the right to pure liberality, no strings attached. remuneratory, or onerous is important for the
disposition is not transferred to the donee while the ■ Remuneratory donations is one made for the purpose of determining:
donor is still alive but it may not necessarily defeat purpose of rewarding the donee for past services, ○ The rules that shall govern a particular
the inter vivos character of the donation, it must still which services do not amount to a demandable donation;
be ascertained by reading the whole contract debt. ○ The formalities to be followed;
altogether. ■ In remuneratory it is necessary that the services ○ The effect of imposition of illegal or
repaid be not demandable obligations, otherwise, impossible conditions.
Distinguishing Characteristics of Donation Mortis the so-called donation is in reality a payment. ■ As stated, simple and remuneratory donations are
Causa ■ It is likewise necessary that the services must have governed primarily by the law on donations and
■ It conveys no title or ownership to the transferee already been performed for if the services are still suppletorily by the law on obligations and contracts,
before the death of the transferor or what amounts to be performed in the future, the donation is as such the formalities required for a valid donation
to the same thing, the transferor should retain the onerous. under article 748 and 749 of the NCC applies to
ownership and control of the property while still ■ In the case of simple and remuneratory donations, these kinds of donations.
alive. the rules on donations shall primarily govern and ■ In addition, article 727 of the NCC expressly
■ That before his death, the transfer should also be the provisions of the Civil Code on obligations and provides that “illegal or impossible conditions in
revocable by the transferor at will, ad nutum; but contracts shall apply supplerorily. simple and remuneratory donations shall be
revocability may be provided for indirectly by considered as not imposed.”
means of a reserved powers in the donor to Modal and Onerous Donations ■ If illegal or impossible conditions are imposed in
dispose of the properties conveyed. ■ A conditional or modal donation is one wher the simple or remuneratory donations, the donations
donation is made of future services or where the are valid because the illegal or impossible
 conditions are simply considered as not imposed, ■ It is explicitly stated in Art. 725 of the NCC that ■ This is clear from the provision of Art. 1323 of the
and thus be disregarded. acceptance is necessary in a donation. Without NCC which provides that “an offer becomes
■ Donations with onerous cause, on the other hand, acceptance, the donation is not perfected. ineffective upon the death, civil interdiction,
are governed not by the law on donations but by ■ The rationale behind the requirements of insanity, or insolvency of either party before
the rules on contracts. Hence, the formalities acceptance is that nobody is obliged to receive a acceptance is conveyed.”
required for a valid donation under Article 748 and benefit against his will. ■ An acceptance made by the donee ruing the
749 of the NCC do not apply. lifetime of both the donor and the donee will not
■ Since it is governed by the laws on donations and Effects of Acceptance result in a perfected donation if prior to the donor
contracts, if an impossible or illegal condition is ■ A donation, as a mode of acquiring ownership, gaining knowledge of such acceptance, either him
imposed, the obligations created shall be annulled results in an effective transfer of title over the (the donor) or the donee dies.
pursuant to the provisions of Article 1183 of the property from the donor to the donee and once a
NCC which states: donation is accepted, the donee becomes tha PERSONS WHO MAY GIVE OR RECEIVE DONATION
○ Art. 1183. Impossible conditions, those absolute owner of the property donated. CHAPTER 2
contrary to good customs or public policy ■ One donation is accepted, it is generally considered
and those prohibited by law shall annul the as irrevocable.
Capacity to Make Donations
obligation which depends upon them. If the ■ Upon acceptance by the donee, the donor can no
obligation is divisible, that part thereof which longer withdraw, and he can be compelled to
Who May Donate?
is not affected by the impossible or unlawful comply with his offering or to deliver the thing to be
■ To be a donor, the law requires that a person must
condition shall be valid. “The condition not donated.
be in possession of the capacity to contract and the
to do an impossible thing shall be ■ It may not be revoked unilaterally by the will of the
capacity to dispose of his property and is not
considered as not having been agreed donor.
specifically prohibited to make a donation.
upon.] ■ The donation, however, may be made revocable
■ The provisions of Article 735 on capacity to donate
upon the fulfillment of resolutory conditions, or may
must be interpreted, however, in conjunction with
Perfection of Donation be revoked only for the reasons provided in Art.
the provisions of Article 751 of the Civil Code which
When Perfected 760, and 765.
provides, as follows:
● Art. 734 of the NCC provides that “Donation is
○ Art. 751. Donations cannot comprehend
perfected from the moment the donor knows of the Manner and Form of Acceptance
future property.
acceptance by the donee.”
■ By future property is understood anything which the
● Before the notice of acceptance, therefore, the
donor cannot dispose of at the time of the donation.
donor is not bound and may withdraw the offer of Time for Making Acceptance
■ Future property includes all property that belongs to
donation. ■ Art. 746 of the NCC requires that “the acceptance
others at the time the donation is made, although it
● In the same manner, the acceptance of the donee must be made during the lifetime of the donor and
may or may not later belong to the donor.
may be revoked before it comes to the knowledge of the donee”
■ It cannot be donated because at the present it is
of the donor. ■ Upon the death of either of the donor or the donee
not his property.
prior to the perfection of the donation, the offer of
■ The law requires that the donor to be the owner of
Acceptance is Indispensable donation, however, becomes ineffective.
the property to be donated at the time of the
 donation, otherwise such donation is void, even if ■ Hence, minors, people who cannot enter into a ■ However, with respect to the forms of acceptance
accepted. contract, and even unborn children may become of donations, the provisions of Art. 748 and 749 of
■ This follows the rule that “No one can give what he donees. the NCC are mandatory in character; the donor
does not have.” - nemo dat quod non habet. ■ A conceived child, although as yet unborn, is given may not prescribe different formalities in accepting
Determination of the Donor’s Capacity provisional personality favorable to it, thus he can a donation other than those provided in said
■ In the original draft of the NCC, the capacity of the become a donee subject to the conditions provided articles.
donor was to be determined at the time of in Art. 41 of the NCC. ■ The law further requires that “the donee must
acceptance of the donation; but the Congress ○ If the fetus had an intrauterine life of at least accept the donation personally; or through an
amended the original draft by providing in the seven (7) months, it is sufficient that it is authorized person with a special power for the
present Art. 737 of the NCC that such alive after the cutting of the umbilical cord. purpose, or with a general and sufficient power”
determination is to be made at “the time of making The fetus will then be considered a person otherwise the donation shall be void.
the donation” even if it eventually dies. Making the ■ The donation may not be accepted by a person not
■ The term “time of making the donation” means the donation valid. authorized to do so.
“perfection of the donation” or when the donor has ○ If the fetus is already dead at the time of ■ While minor, other incapacitated persons and
the knowledge of the acceptance by the donee. delivery, its personality disappears and will unborn children may become donees, the law
render the donation invalid for lack of requires that the acceptance of the donation must
Legal Impossibility of Double Donations donee. be made through their parents or legal
● Art. 744 of the NCC provides: ○ If the fetus has an intrauterine life of less representatives.
○ Art. 744. Donations of the same thing to two than 7 months, it is not deemed born if it
or more different donees shall be governed dies within 24 hours after its complete Persons Disqualified to Become Donees
by the provisions concerning the sale of the delivery. If it survives for at least 24 hours it ■ Persons disqualified to become donees are those
same thing to two or more different persons. will then be considered as a person even if to whom donations cannot be made by express
● This is not legally possible, a donation would not be it dies making the donation valid. provisions of the law. Hence, the following persons
legally feasible if the donor has neither ownership are disqualified to become donees:
nor real right that he can transmit to the donee. It Manner of Acceptance ○ Those who were guilty of adultery or
would be an efficacious process if the donor would ■ The donor has a right to prescribe in his donation concubinage at the time of the donation;
have nothing to convey at the time it was made any conditions as to time, place, quantity, mode of ○ Those who were found guilty of the same
acceptance, or other matters which it may please criminal offense, of the donation is made in
Capacity of the Donee him to insert, in which the acceptance, to conclude consideration thereof;
■ The law does not require that the donee must the agreement must in every aspect meet and ○ Public officers or their spouses,
possess capacity to act, which is defined as “the correspond with the offer, neither falling short or descendants and ascendants if the
power to do acts with legal effect”, it is sufficient going beyond it, but exactly as the offers stands. donations is made by reason of their office;
that he must possess "juridical capacity" or “the ■ This is clear from the Art. 1321 of the NCC: ○ Those who are incapacitated to succeed by
fitness to be subject of legal relations.” Art. 132. The person making the offer may will;
■ All persons, whether natural or juridical, who are fix the time, place, and manner of ○ The spouses, if the donation is between
not specially disqualified by law may become acceptance, all which must be complied. them and made during the marriage, except
donees.
 moderation ones given on the occasion of woman must know the man to be married.The ■ For this prohibition to apply, it is necessary,
any family rejoicing; same will likewise apply to the man accused of however, to prove that the donor and the one are
○ Those who are living together as husband committing the crime of adultery living together as husband and wife.
and wife without a valid marriage, if the ■ Cohabitation, is at the very least, the public
donation is between them and made during Persons Guilty of Same Criminal Offense. assumption by a man and a woman of the marital
their cohabitation. ■ Paragraph 2 of Art, 739 contemplates a principal by relation, and dwelling together as man and wife,
inducement and a principal by direct participation. thereby holding themselves out to the public as
Persons Guilty of Adultery or Concubinage ■ If a donation is made between these two persons in such.
■ Donations made between persons who were guilty consideration of the commission of a crime, such
of adultery or concubinage at the time of the donation shall be void. Persons Disqualified to Succeed by Will
donations shall be void. ■ Unlike paragraph 1, a criminal conviction is ■ Art. 1027 and 1032 of the NCC enumerate those
■ No previous criminal conviction is necessary since necessary since the law uses the phrase “those persons who are incapacitated to succeed by will.
the guilt of the donor and the donee may be proved found guilty of the same criminal offense” ■ However, the disqualifications contemplated in Art.
by the preponderance of evidence in a civil action 740 extends only to those persons who are
for declaration of nullity of the donation. Public Officers, His Spouse, Ascendant and incapable of succeeding by virtue of Art. 1027 of
■ Under the RPC (Art. 333 and 334) a single sexual Descendants the NCC and does not extend to those persons
intercourse by a woman with a man other than her ■ When the donation is made to a public officer or his disqualified under Art. 1032.
husband constitutes adultery while a single sexual or her spouse, descendants of ascendants, the ■ A donation made to a person who falls under the
intercourse of the husband will not produce donation is likewise void. provisions of Article 1032 would be valid, because
concubinage, for concubinage to be present the ■ This should be construed as referring to the a testamentary provision made in favor of such a
following things must be committed by the “spouse” as to include the husband. person after the testator has knowledge of the act
husband: of unworthiness would constitute a pardon under
○ Keep the mistress in the conjugal dwelling; Donation to a Spouse During Marriage Article 1033.
○ Having sexual intercourse under ■ Art. 87 of the Family Code prohibits the spouses ■ In relation to Art. 1027, the following persons are
scandalous circumstances; from donating to each other during the marriage. disqualified to become donees under the provisions
○ Cohabit with her in any other place. ■ Any such donation between the spouses during the of Art. 740 of the NCC:
■ While the husband may not be guilty of marriage, whether direct or indirect, is considered ○ The priest who heard the confession of the
concubinage for a single act of sexual intercourse, void, and the prohibition applies whatever may be donor during his last illness, or the minister
a donation in favor of a paramour may still be the property regime governing the spouses. of the gospel who extended spiritual aid to
considered invalid if the same is made in ■ This is not an absolute rule, as moderate gifts him during the same period;
consideration of the sexual intercourse since between the spouses given on the occasion of ○ The relatives of such priest or minister of
contract whose cause, object or purpose is family rejoicing are considered valid. the gospel within the fourth degree, the
contract to law, morals, good customs, public order church, order, chapter, community,
or public policy are void from the very beginning. Persons Cohabiting as Husband and Wife organization, or institution to which such
■ Art. 739 of the NCC does noy apply to cases where ■ The prohibition in Art. 87 of the Family Code also priest or minister may belong;
the alleged concubine did not know that the man applies to persons living together as husband and ○ A guardian with respect to donations made
was married. To be guilty of concubinage, the wife without the benefit of marriage. by a ward in his favor before the final
 accounts of the guardianship have been considered donation propert nuptias the following to satisfy must be specified in the deed of
approved even if the donor should dies after must be present: donation;
the approval thereof, nevertheless, the ○ It must be made before the celebration of ○ 3. If the acceptance is embodied in a
donations made by the ward in favor of the marriage; separated public document, the donor shall
guardian when the latter is his ascendant, ○ It must be made in consideration of be notified in both instruments of donation
descendant, brother, sister, or spouse shall marriage; and acceptance.
be valid. ○ It must be made in favor of one or both of ■ All the foregoing requires must be complied with,
○ Any physician, surgeon, nurse, health the future spouses otherwise the donation is void.
officers, or ruggist who took care of the
donor during his last illness; and Forms of Donations of Personal Property Donation and Acceptance Must be in a Public
○ Individual, association and corporations not ■ The formalities of donations involving personal Document
permitted by law to receive donations. properties are governed by Art. 748 of the NCC. ■ In order that the donation of an immovable property
■ Depending on its value, the donation of a personal may be valid, it must be made in a public document
Formalities in Donation In General property may be made either orally or in writing. regardless of the value of the property.
■ While donation is considered a contract and as a ■ If the value of the personal property does not ■ It cannot take effect as a donation if not embodied
rule, contracts are obligatory in whatever form they exceed P5,000, the donation may be made orally, in a public document.
may be entered into, donation, however, is a subject to the requirement that there must be ■ The law requires that the acceptance must be
solemn contract which requires form for purposes simultaneous delivery of the thing or of the made in the same deed of donation or in a separate
of validity. document representing the right donated. public document.
■ If the formalities required in Art. 748 and 749 are ■ If the donation is in writing, there is no requirement ■ If the acceptance is not embodied in a public
not followed; the donation shall be void. of a simultaneous delivery and the law does not document, the donation shall be void.
require that the acceptance must also be in writing. ■ Public documents are defined in Cacnio v. Baens53
Applicability of Art. 748 and 749 of the NCC ■ If the value exceeds P5,000, the law mandates that as "those instruments authorized by a notary public
■ The formalites in Art. 748 and 749 are applicable both the donation and the acceptance must be in or by a competent public official with all the
only to donations inter vivos and not mortis cause, writing, otherwise the donation shall be void. solemnities required by law. By this definition, any
the latter being governed by the formalities for the ■ The law does not require that both the donation and notarized document is considered a public
validity of wills. acceptance be embodied in a single instrument. document.
■ Further specified that these formalities apply only to
simple and remuneratory donations and find no Forms of Donations of Real Property Property Donated and Value of Charges Must be
applications to onerous ones, the latter being ■ If what is to be donated is a real property, the law Specified
governed by the rules on contracts. mandates that: ■ Art. 749 further requires that the real property
■ Art. 83 of the FC provides that the formalities of ○ 1. Both the donation and acceptance must donated and the value of the charges which the
donations propter nuptias are likewise governed by be embodies in a public instrument; not donee is required to satisfy must be specified in the
Art. 748 and 749 of the NCC. These donations are necessarily in a single document; deed of donation.
limited to those made before the celebration of the ○ 2. The real property donated and the value ■ The “charges” referred to in this article are the
marriage, in consideration of the same, and in favor of the charges which the donee is required burdens mentioned in Art. 726 inferior in value to
of one or both of the future spouses. To be the property donated.
 ■ These charges are required to be specified in the persons, the donation must be registered in the ■ Future property includes all property that belongs to
deed of donation for the purpose of determining the Registry of Property. others at the time the donation is made, although it
true amount of the donation. ● Such registration in the office office of the register may belong to the donor later on.
■ If the value of the burdens or charges is at least of deeds or in the assessor’s office is not necessary ■ “At the time of the donation” in the 2nd paragraph
equal or superior to that of the value of the for the donation to be considered valid and official. of Art. 751 means “at the time of the perfection of
donation, the donation in reality is a contract the donation.”
governed by the laws on contracts. ■ Hence, it is possible that, at the time of execution of
the deed of donation or even up to the time of
Requirements of Notification and Notation EFFECT OF DONATIONS AND LIMITATIONS THEREON acceptance, the donor may not be the honor of the
■ Title to immovable property does not pass from the CHAPTER 3 property donated, so as long as at the time the
donor to the donee by virtue of a deed of donation acceptance is made known to the donor, at which
until and unless it has been accepted in a public point the donation is perfected.
EXTENT OF DONATION
instrument and the donor duly notified thereof.
■ The acceptance may be made in the very same Donation of Future Property Between Future Spouses
In General
instrument of donation. If the acceptance does not ■ In donation propter nuptias, the Family Code allows
■ A donor may donate all his property or part thereof
appear in the same document, it must be made in a donation of future property between spouses.
subject only to the following limitations:
another. ■ Under the said provision of the FC, the donation of
1. He cannot donate future properties;
■ Solemn words are not necessary; it is sufficient if it future property partakes of the nature of
2. He must reserve, in full ownership or in
shows the intention to accept. But in this case it is testamentary provision and, as such, it is governed
usufruct , sufficient means of support of
necessary that formal notice thereof be given to the by the “provisions on testamentary succession and
himself, and of all relatives, who at the time
donor, and the fact that due notice has been given the formalities of wills.”
of the acceptance of the donation, are by
must be noted in both instruments (that containing ■ In donation propter nuptias it is essential that the
law entitled to be supported by him; and
the offer to donate and that showing the donee or donees be either of the future spouses or
3. He cannot give by donation more than he
acceptance). both of them, although the donor may either be one
can give by will.
■ Where the deed of donation fails to show the of the future spouses or a third person.
acceptance, or where the formal notice of the ■ Consequently, if the donation of future property is
Future Property Cannot be Donated
acceptance, made in a separate instrument, is made by a third person, Art. 84 of the FC does not
■ Donations cannot comprehend future property.
either not given to the donor or else not noted in the apply but article 751 of the NCC, even if the
■ Donation results in the transfer of title over the
deed of donation and in the separate acceptance, donation is one of proper nuptias. In which case,
property from the donor to the donee, for this
the donation is null and void. such donation of future property is prohibited.
reason the law requires that the donor must be the
■ It is well-settled that if the notification and notation
owner of the thing at the time of the donation.
are not complied with, the donation is void.211 Neither Spouses May Donate His or Her Share in the
■ This follows the rule “No one can give what he does
Absolute Community or Conjugal Partnership of Gains
not have.”
Registration Not Necessary for Validity of Donation ■ Under the FC, either spouse may dispose of his or
■ Future property is understood as anything which
● It is enough, between the parties to a donation of her interest in the community property or conjugal
the donor cannot dispose of at the time of the
an immovable property, that the donation be made partnership of gains only by will and not by acts
donation.
in a public instrument but, in order to bind third inter vivos. Hence, neither the husband nor the wife
 may donate his or her interest in the community ■ However, if the donor fails to make such a which shall constitute the separate
property or conjugal partnership of gains. reservation, the donation is not void but subject property of each.
■ The reason for this is prior to the liquidation of the only to a corresponding reduction at the instance of
ACP or CPG, the interest of each spouse in the “any person affected” and only to the extent This public document shall be recorded in
community property or conjugal assets is inchoate, necessary for the support of the donor and his the Registry of Property.
a mere expectancy, which constitutes neither a relatives.
In the cases referred to in this article, all the
legal nor an equitable estate, and does not ripen ■ The provision of Art. 750 must be read in
property brought in shall be deemed to be
into title until it appears that there are assets in the conjunction with Art. 195 and 196 of the FC which
newly contributed, even though all or some
community as a result of the liquidation and provides:
may be the same which existed before the
settlement. ○ Article 195. The separation of property
liquidation effected by reason of the
■ The right of the husband or wife to ½ of the ceases:
separation. (1439a)
conjugal assets or community property does not 1. Upon reconciliation of the spouses,
vest until the dissolution and liquidation of the in case of legal separation; Article 196. With the conjugal partnership
marriage, when it is finally determined that, after 2. When the civil interdiction subsisting, the administration of all classes
settlement of conjugal or absolute community terminates; of property in the marriage may be
obligations, there are net assets left which can be 3. When the absent spouse appears; transferred by the courts to the wife:
divided between the spouses or their respective 4. When the court, at the instance of
heirs. the wife, authorizes the husband to 1. When she becomes the guardian of
■ Hence, any disposition of the spouse’s respective resume the administration of the her husband;
shares or interest in the ACP or CPG shall be void conjugal partnership, the court being 2. When she asks for the declaration of
since such right to ½ of the conjugal assets does satisfied that the husband will not his absence;
not vest until liquidation of the conjugal partnership. again abuse his powers as an 3. In case of civil interdiction of the
■ In other words, prior to the liquidation of the ACP or administrator; husband.
CPG, the interest of each spouse in the community 5. When the husband, who has ■ Thus, any of the persons enumerated in the above
property or conjugal assets is considered as a abandoned the wife, rejoins her. quoted provisions may be deemed as a party in
future property which cannot be the subject matter interest in any participation for reduction of the
of donation inter vivos. In the above cases, the property donation by reason of Art. 750 of the NCC.
relations between the spouses shall
Donor Must Reserve For Himself and Relatives be governed by the same rules as Donations Must Not Be Inofficious
■ While a donor may donate all his present property, before the separation, without ■ A donor is subject to the limitation that he cannot
he must not neglect himself and his family. prejudice to the acts and contracts give by donation more than he can give by will. If
■ The basic limitations to the donor’s right is that he legally executed during the he does, so much of what is donated as exceeds
must reserve either in full ownership or in usufruct, separation. what he can give by will is deemed “inofficious” and
sufficient means to support himself and all relatives, the donation is reducible to the extent of such
The spouses shall state, in a public excess, though without prejudice to its taking effect
who at the time of the acceptance, are by law
document, all the property which in the donor’s lifetime or the donee’s appropriating
entitled to be supported by the donor.
they return to the marriage and the fruits of the thing.
 ■ Under the law on succession there are 3 kinds of 2. If the donees are not husband and wife, Reservation of Power to Dispose
heirs: there is no right of accretion among them ■ As previously discussed, if there is reservation of
1. Voluntary - those who become an heir as accretion taking pace only when expressly the donor of the power or to alienate the property
such only by the express will of the testator provided for by the donor. If the donation, donated, the donation is mortis causa this must be
in his last will and testament; however, is made to husband and wife distinguished from the provision of Art. 755 of the
2. Legal or interstate - those who are called jointly the rule is that there is a right of NCC, which contemplates a situation where there
by law to the succession in the absence of accretion among them unless the donor are several properties donated by the donor and he
voluntary heroes designated by the testator; provides for the contrary. reserved for himself the power to dispose of “some
3. Compulsory - those who are entitled to the of the things donated, or some amount.”
legitime and cannot be deprived thereof by Note: Right of accretion - When there is a ■ Such reservation is valid and will not affect the
the testator unless properly disinherited by right of accretion among several donees, character of the conveyance as donation inter
him. the share of one who did not accept or vivos.
■ There is a part of a person’s property which he could not accept or who dies before he had ■ If the donor should die , however, without having
cannot dispose of either by way of donation inter accepted shall go to the other donees in made use of this right, the property or amount
vivos or testamentary provision in a will because proportion to the interest of each in the reserved shall belong to the donee.
the law has reserved it for the compulsory heirs. donation. ■ On the other hand, if there are several properties
This portion is called the “legitime.” donated and the donor has reserved the power to
■ Inofficious donations are, therefore, those which 3. If the donation is made to the spouses dispose of all of them, which right is neither
prejudice the legitime of the compulsory heirs. jointly in a regime of CPG, and with qualified nor restricted, meaning he can alienate all
■ Inofficious provisions are not void although they designation of determinate shares, their the coveted properties in favor of other persons of
may be subjected to a corresponding reduction or respective shares shall pertain to them as his choice any anytime that he should wish to do
revocation, as the case may be , if there is his or her own exclusive property. In the so, the donation is mortis causa, therefore, subject
impairment of the legitime of the compulsory absence of designation, they shall share to the rules governing testamentary provisions and
heroes of the donor. and share alike, without prejudice to the formalities of will.
■ Whether or not there is impairment of such legitime right of accretion.
is a matter that can be determined only upon the Separate Donation of Ownership and Usufruct
death of the donor after considering the estimated No Warranty Against Eviction ■ The donor may donate separately the ownership of
net value of his property at the time of his death. ■ As a rule, the donor does not warrant the thing the property to one person and the usufruct to
donated against eviction. Hence, the donor has no another or other subject only to the condition that
liability to the donee in case of eviction except: all of donees must be living at the time of the
1. When there is bad faith on the part of the donation.
EFFECTS OF DONATIONS donor, in which case he is also liable for
Donations Made to Several Donees, Jointly hidden defects; Donor May Provide for Reversion
■ When donations is made to several persons jointly, 2. When the donation is onerous, in which ■ The donor may validly provide for the reversion or
the following rules shall apply: case the donor shall be liable up to the return of the property donated to him for any case
1. The donees are entitled to equal portions; amount equal to the burden. and circumstances.
 ■ He may likewise establish a reversion in favor of a ■ The donation may likewise be reduced based onf ■ Revocation, as distinguished from reduction, affects
third person provided that such person is living at the following grounds: the entire donation while the latter affects only a
the time of the donation. 1. That the donor did not reserve sufficient part or portion thereof.
■ If the latter condition is violated, only the provision property for his own and his family’s ■ When the ground invoked is the subsequent
for reversion is considered void without affecting support; appearance of children under Art. 760, the donation
the validity of the donation. 2. By the subsequent appearance of children; shall be revoked or reduced insofar as it exceeds
3. That the donation is inofficious. the portion that may be freely disposed by will.
Payment of Donor’s Debts ■ In other words, there shall be a corresponding
■ When the donation imposes upon the donee the reduction or revocation of the donation in so far as
obligation to pay the debts of the donor, the Subsequent Appearance of Children it impairs the legitime of the child who subsequently
following rules shall apply unless a contrary ■ Every donation inter vivos, made by a person appeared after the making of the donation.
intention clearly appears: having no children or descendants, legitimated by ■ But if there is no impairment of the child’s legitime
1. The donee is understood to be liable to pay subsequent marriage, or illegitimate, may be or when the donation does not exceed the free
only the debts which appear to have been revoked or reduced, by the happening of any of portion, then the donation shall not be reduced nor
previously contracted; these events: revoked.
2. The liability of the donee is limited only to 1. If the donor, after the donation should have ■ In Art. 760 the “officiousness” of the donation is to
the value of the property donated. legitimate or legitimated or illegitimate be determined during the lifetime of the donor, i.e.,
children even though they may be at the time of the birth, appearance or adoption of a
.NATURE OF DONATIONS posthumous minor child.
CHAPTER 4 2. If the child believed to be dead when the ■ In Article 752, in relation to Article 771, however,
REVOCATION AND REDUCTION OF DONATIONS donation was made, turn out to be living; the “officiousness” of the donation is determined
3. If the donor subsequently adopts a minor only at the time of death of the donor.
child. ■ If, at the time of the subsequent appearance of a
REDUCTION OR REVOCATION OF DONATIONS
child under Article 760, the entire donation is found
Adoption of Minor Child to be within the free portion of the donor’s estate, in
In General
■ In order to be a ground for revocation, the adopted which case, the donation is neither reduced nor
■ As a general rule once donation (inter vivos) is
must be minor. Otherwise, the donation may not be revoked, and later on the donor died after suffering
perfected it is irrevocable. The exceptions to
reduced or revoked pursuant to Art. 760 although it financial reverses, may such donation be revoked if
irrevocability are the following grounds expressly
may be subjected to either reduction or revocation found to be inofficious at the time of the donor’s
provided in Arts. 752, 760, 764 and 765 of the
pursuant to Art. 752. death? The answer is clearly in the affirmative: the
NCC;
donation may be revoked. In this situation, the
1. The subsequent appearance of children;
Effect of Subsequent Appearance of Children ground for the revocation of the donation is Article
2. The non-fulfillment of charges imposed in
■ Upon the happening of any of the events 752 of the New Civil Code.
the donation;
mentioned in Art. 760, the donors shall be entitled ■ Let us consider, however, a donation which is either
3. The ingratitude of the donee; and
either for the reduction or revocation of the reduced or revoked because it is found to be
4. The fact that the donations is inofficious
donation, as the case may be. inofficious at the time of the subsequent
appearance of a child under Article 760, but later
 on the donor dies a richer man and, at the time of his legitimate or illegitimate children and the condition imposed is 10 years counted from the
his death, the previous donation could have been descendants, if the donor dies within the four-year time within which the donee must comply with the
accommodated in the free portion, may the donee prescriptive period. conditions of the donation.
be entitled to the return of the thing donated or its
value? The answer must be in the negative, it Failure to Comply With Charges Effects of Revocation under Article 764
cannot be revoked. In this second situation, the ■ Art. 764 of the NCC provides: ■ When the donation is revoked for failure to comply
ground for the revocation of the donation is Article ○ “Art. 764. The donation shall be revoked at with the charges imposed on donation, the property
760, which is an altogether different ground from the instance of the donor, when the donee donated shall be returned to the donor.
that provided in Article 752. fails to comply with any of the conditions ■ Any alienation or encumbrance made by the donee
which the former imposed upon the latter. with respect to the donated property shall be
Effects of Reduction or Revocation of Donation considered void, subject, however, to the rights of a
■ Upon the revocation or reduction based on Art. “In this case, the property donated shall be buyer or mortgagee in good faith.
760, the following effects are produced: returned to the donor, the alienations made ■ If the renovation is based upon noncompliance with
1. The property affected shall be returned, or if by the donee and the mortgages imposed any of the conditions imposed in the donation, the
it cannot be returned, at least its value; thereon by him being void, with the donee shall return not only the property but also the
2. If the property is mortgaged, the donor may limitations established, with regard to third fruits thereof which he may have received after
redeem the mortgage, by paying the persons, by the Mortgage Law and the Land having failed to fulfill the condition.
amount guaranteed, with a right to recover Registration Laws.
his payment from the donee. When the Prescriptive Period of Actions Based under Artic;e 764
property cannot be returned, it shall be “This action shall be prescribed after four ■ The action for revocation based on Art. 764 shall
estimated at what it was worth at the time of years from the non-compliance with the prescribe after 4 years from the non - compliance
the donation. condition, may be transmitted to the heirs of with the condition.
3. The donee shall return the fruits of property the donor, and may be exercised against ■ Such action is transmissible to the heirs of the
affected only from filing of the complaint. the donee’s heirs.” donor and may be exercised against the heirs of
the donee.
Prescriptive Period of Actions Based on Article 760 Applicability of Article 764
■ The prescriptive period of an action for revocation ■ In De Luna v. Abrito the SC made a ruling to the Article 764 Does not Apply When Donation Expressly
or reduction of the donation under Article 760 is effect that Art. 764 of the NCC does not apply to Provides For Automatic Reversion
four (4) years reckoned from the birth of the first onerous donations in view of the specific provision ■ The prescriptive period in Art. 764 does not apply
child, or from his legitimation, recognition or of Art. 733 providing that onerous donations are when the deed of donation expressly provides for
adoption, or from judicial declaration of filiation, or governed by the rules of contract. automatic reversion of the property donated in case
from the time information was received regarding ■ In determining the prescriptive period of an action of violation of the condition therein because in such
the existence of the child believed dead.If, however, to revoke donations the rules on contracts and a case a judicial declaration revoking the donation
the child dies prior to the filing of the action, it is general rules on prescription and not the rules on is not necessary.
believed that the action can no longer be brought. donations are applied. ■ In other words, Art. 764 of the NCC is intended to
■ This action is not subject to waiver or renunciation ■ Hence, the prescriptive period for revocation of provide a judicial remedy in case of non-fulfillment
and is transmitted, upon the death of the donor, to onerous donation by reason of non-compliance with or contravention of conditions specified in the deed
 of donation if and when the parties have not agreed was not possible for the donor to bring the action 5. The determination of the amount of the
on the automatic revocation of such donation upon during his lifetime, the right to bring the same is legitimes by getting from the total found the
the concurrence of the contingency contemplated transmitted to the heirs upon the donor’s death. portion that the law provides as the legitime
therein. ■ Neither may the action be filed against the heirs of of each compulsory heirs.
■ Instead, the applicable prescriptive period is 10 the donee upon the death of the latter, even if the ■ Deducting the legitimes from the net value of the
years as provided in Art. 1144 (1) of the NCC, since latter should die before the expiration of the one hereditary estate leaves the freely disposable
the action is for the enforcement of a written year period. portion by which the donation in question must be
contract. measured.
How to Determine Inofficiousness of Donations ■ If the value of the donation at the time it was made
Revocation by Reason of Ingratitude ■ As discussed,donations which exceed the freely does not exceed the difference, then it must be
■ The donation may also be revoked at the instance disposable portion of the donor’s estate and thus allowed to stand.
of the donor by reason of ingratitude in the impairs the legitime of the compulsory heirs are ■ But if it does, the donation is inofficious as to the
following cases: inoffficious and subject to reduction with regard to excess and must be reduced by the amount of said
1. If the donee should commit some offense the excess. excess.
against the person, the honor or the ■ In determining whether the donation is inofficious or
property of the donor, or his wife or children not, recourse must be had to the rules established Status of Such Donation During Donor’s Lifetime
under his parental authority; by the NCC for the determination of the legitime ■ While donation may be found to be inofficious at
2. If the donee imputes to the donor any and , by extension, of the disposable portion, taking the time of the donor’s death, it takes effect
criminal offense, or any act involving moral into consideration the estimated vet value of the nonetheless during the donor’s lifetime.
turpitude, even though he should prove it, donor’s property at the time of his death. ■ The mere fact that the donation turns out to be
unless the crime or the act has been ■ These rules are set forth in Arts. 908,90 and 910 of inoffcious at the time of the donor’s death does not
committed against the donee himself, his the NCC, on the basis of which the following step result in the automatic revocation of the donation.
wife or children under his authority; by step procedure has been outlined: ■ The provision of Art. 752, in relation to Art. 771, is
3. If he unduly refuses him support when the 1. Determination of the value of the property not self - executory.
donee is legally or morally bound to give which remains at the time of the testator’s ■ In other words, if no action for revocation is filed, or
support to the donor. death; if it is filed after the lapse of the prescriptive period,
■ The action for revocation by reason of ingratitude 2. Determination of the obligations, debts, and the donation is forever considered valid.
may not be renounced in advance and the same charges which have to be paid out or
prescribes within a period of one year counted from deducted from the value of the property thus Who May Question Inofficiousness of Donations?
the time that the donor had knowledge of the fact left; ■ Only those who at the time of the donor’s death hav
and it was possible for him to bring the action. 3. The determination of the difference between a right to the legitime and their heirs and
■ If it was possible for the donor to bring the action the assets and the liabilities, giving rise to successors in interest may ask for the reduction or
but he did not institute the same, the right to file the the hereditary state’ revocation of inofficious donations.
same is not transmitted to his heirs even if he dies 4. The addition to the net ale thus found, of the ■ In other words, persons who are not entitled to the
before the expiration of the one year period. value, at the time they were made, of legitime (those not considered compulsory heirs),
■ A fortiori, if upon the death of the donor the one donations subject to collation; and such as donees, devises, legatees, and creditors of
period has not yet commenced to run because it
 the deceased donor, cannot ask for the reduction or them, those of the more recent date shall be
revocation of inofficious donations. suppressed or reduced with regard to the excess.
■ During the lifetime of the donor, the compulsory ■ If they are of the same date, they shall be reduced
hers who are entitled to ask for the reduction or proportionately.
revocation of inofficious donations cannot renounce ■ As in the case of revocation of donations for any of
their right, whether the renunciation be done the causes stated in Art. 760 and by reason of
expressly or impliedly. ingratitude, when the donation is reduced because
it is inofficious, the donee shall not return the fruits
Prescriptive Period on the Ground of Inoffciousness except from the filing of the complaint.
■ The NCC specifies the following prescriptive
periods of the actions for the reduction or
revocation of donations inter vivos:
1. 4 years, in case of subsequent birth,
appearance, recognition or adoption of a
child;
2. 4 years, for non compliance with conditions
of a donations
3. 1 year for reason of ingratitude;
4. At any time during the lifetime of the donor
and his relatives entitled to support for
failure of the donor to reserve property for
his or their support.
■ In Imperial v. CA, the SC held that an action for
reduction or revocation of an inofficious donation
upon the allegation of impairment of legitime
prescribed in 10 years following Art. 1114 of the
NCC. The 10 year period commences to run only
upon the death of the donor - decedent.

Effect of Reduction or Revocation of Inoffcious

Donations
■ When a donation is found to be inoffcious, the
same will be reduced to the extent necessary to
satisfy the legitimes compulsory heirs who were
prejudiced by such donation.
■ If there are two or more donations and the
disposable portion is not sufficient to cover all of