Donation

1. Donation is an act of liberality whereby a person disposes gratuitously of a thing or right in

favor of another, who accepts it (Art. 725, NCC).

2. Essential elements of donation:

a. The essential reduction of the patrimony of the donor
b. The increase in the patrimony of the donee, and
c. The intent to do an act of liberality or animus donandi (Abello vs. Commisssoner of Internal
Revenue, 452 SCRA 162, 23 February 2005) (Rabuya, Property)

3. Acceptance must be made during the lifetime of the donor and of the donee (Art. 746, NCC).

4. When a person gives to another a thing or right on account of the latter's merits or of the
services rendered by him to the donor, provided they do not constitute a demandable debt,
or when the gift imposes upon the donee a burden which is less than the value of the thing
given, there is also a donation (Art. 726, NCC).

Extent to which donor may donate property

1. The donations may comprehend all the present property of the donor, or part thereof,
provided that:

a. If he has no forced heirs, he reserves, in full ownership or in usufruct, sufficient means for
the support of himself, and of all relatives who, at the time of the acceptance of the
donation, are by law entitled to be supported by the donor. Without such reservation, the
donation shall be reduced in petition of any person affected (Art. 750, NCC).

b. If he has forced heirs, he cannot give or receive by donation more than what he can give
or receive by will (Art. 752, NCC)

2. Donations cannot comprehend future property. By future property is understood anything

which the donor cannot dispose of at the time of the donation (Art. 451, NCC).

3. The donation shall be inofficious in all that it may exceed this limitation (Art. 752, NCC).

4. When a donation is made to several persons jointly, it is understood to be in equal shares, and
there shall be no right of accretion among them, unless the donor has otherwise provided.

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5. The preceding paragraph shall not be applicable to donations made to the husband and wife
jointly, between whom there shall be a right of accretion, if the contrary has not been provided
by the donor (Art. 753, NCC).

6. The donee is subrogated to all the rights and actions which in case of eviction would pertain
to the donor. The latter, on the other hand, is not obliged to warrant the things donated, save
when the donation is onerous, in which case the donor shall be liable for eviction to the
concurrence of the burden.

7. The donor shall also be liable for eviction or hidden defects in case of bad faith on his part
(Art. 754, NCC).

Kinds of donation
1. Donation inter vivos
When the donor intends that the donation shall take effect during the lifetime of the donor,
though the property shall not be delivered till after the donor's death, this shall be a donation
inter vivos. The fruits of the property from the time of the acceptance of the donation, shall
pertain to the donee, unless the donor provides otherwise (Art. 729, NCC).

2. Donation by reason of marriage (donation propter nuptias)

a. Donations by reason of marriage are those which are made before its celebration, in
consideration of the same, and in favor of one or both of the future spouses (Art. 82, FC).

b. A donation by reason of marriage may be revoked by the donor in the following cases:
i. If the marriage is not celebrated or judicially declared void ab initio except donations
made in the marriage settlements, which shall be governed by Article 81;

ii. When the marriage takes place without the consent of the parents or guardian, as
required by law;

iii. When the marriage is annulled, and the donee acted in bad faith;

iv. Upon legal separation, the donee being the guilty spouse;

v. If it is with a resolutory condition and the condition is complied with;

vi. When the donee has committed an act of ingratitude as specified by the provisions of
the Civil Code on donations in general (Art. 86, FC).

3. Donation mortis causa

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 Donations which are to take effect upon the death of the donor partake of the nature of
testamentary provisions, and shall be governed by the rules established in the Title on
Succession (Art. 728, NCC).

4. Onerous donation
Donations with an onerous cause shall be governed by the rules on contracts and
remuneratory donations by the provisions of the present Title as regards that portion which
exceeds the value of the burden imposed (Art. 733, NCC).

5. Simple, modal, conditional

a. Simple or that the cause of which is the pure liberality of the donor.

b. Modal or that which imposes upon the donee a burden less than the value of the gift.

c. Conditional or that which is subject to a condition, suspensive or resolutory.

Formalities required
1. Movable Property

a. If donation is oral, simultaneous delivery of property donated is required if the value is

P5,000.00 or less. Acceptance may be oral or written.

b. If donation is in writing, simultaneous delivery of property donated is not required

regardless of value. Acceptance may be oral or written.

c. If the value exceeds P5,000.00 the donation and acceptance must be in writing.
Simultaneous delivery of property donated is not required.

2. Immovable Property
a. Must be in a public instrument specifying the property donated and the burdens assumed
by donee, regardless of value.

b. Acceptance must be:

i. In the same instrument; or
ii. In another public instrument notified to the donor in authentic form, and noted in
both deeds (Article 749, NCC).

How made and accepted

1. The donation of a movable may be made orally or in writing.

2. An oral donation requires the simultaneous delivery of the thing or of the document
representing the right donated.
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3. If the value of the personal property donated exceeds five thousand pesos, the donation and
the acceptance shall be made in writing, otherwise, the donation shall be void (Art. 748, NCC).

4. In order that the donation of an immovable may be valid, it must be made in a public
document, specifying therein the property donated and the value of the charges which the
donee must satisfy.

5. The acceptance may be made in the same deed of donation or in a separate public document,
but it shall not take effect unless it is done during the lifetime of the donor.

6. If the acceptance is made in a separate instrument, the donor shall be notified thereof in an
authentic form, and this step shall be noted in both instruments (Art. 748, NCC).

Perfection
The donation is perfected from the moment the donor knows of the acceptance by the donee (Art.
734, NCC).

Capacity of the Donor

1. The donor must have both the capacity to contract and to dispose (Art. 735, NCC)

2. The capacity of the donor is determined as of the time of the making of the donation (Art. 737,
NCC). Any subsequent incapacity of the donor does not affect the validity of the same.

Differences between formalities for donation of real, personal properties

1. Movables
a. The donation of a movable may be made orally or in writing.

b. An oral donation requires the simultaneous delivery of the thing or of the document
representing the right donated.

c. If the value of the personal property donated exceeds five thousand pesos, the donation
and the acceptance shall be made in writing, otherwise, the donation shall be void (Art.
748, NCC).

2. Immovables
a. In order that the donation of an immovable may be valid, it must be made in a public
document, specifying therein the property donated and the value of the charges which
the donee must satisfy.

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 b. The acceptance may be made in the same deed of donation or in a separate public
document, but it shall not take effect unless it is done during the lifetime of the donor.

c. If the acceptance is made in a separate instrument, the donor shall be notified thereof in
an authentic form, and this step shall be noted in both instruments (Art. 749, NCC).

Qualifications of donor and donee

1. All persons who may contract and dispose of their property may make a donation. (Art.
735, NCC).

2. Guardians and trustees cannot donate the property entrusted to them. (Art. 736, NCC).

3. The donor's capacity shall be determined as of the time of the making of the donation (Art.
737, NCC).

4. Incapacity to succeed by will shall be applicable to donations inter vivos (Art. 740, NCC).

5. Minors and others who cannot enter into a contract may become donees but acceptance shall
be done through their parents or legal representatives (Art. 741, NCC).

6. Donations made to conceived and unborn children may be accepted by those persons who
would legally represent them if they were already born (Art. 742, NCC).

7. Donations made to incapacitated persons shall be void, though simulated under the guise of
another contract or through a person who is interposed (Art. 743, NCC).

8. Take note of donations considered as void under Article 739, NCC.

Scope of amount of donations

1. The donations may comprehend all the present property of the donor, or part thereof,
provided he reserves, in full ownership or in usufruct, sufficient means for the support of
himself, and of all relatives who, at the time of the acceptance of the donation, are by law
entitled to be supported by the donor.

Without such reservation, the donation shall be reduced in petition of any person affected
(Art. 750, NCC).

2. Donations cannot comprehend future property. By future property is understood anything

which the donor cannot dispose of at the time of the donation (Art. 751, NCC).

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3. The provisions of Article 750 notwithstanding, no person may give or receive, by way of
donation, more than he may give or receive by will.

4. The donation shall be inofficious in all that it may exceed this limitation (Art. 751, NCC).

In fraud of creditors

1. There being no stipulation regarding the payment of debts, the donee shall be responsible
therefor only when the donation has been made in fraud of creditors.

2. The donation is always presumed to be in fraud of creditors, when at the time thereof the
donor did not reserve sufficient property to pay his debts prior to the donation (Art. 759,
NCC).

Void donations

1. The following donations shall be void:

a. Those made between persons who were guilty of adultery or concubinage at the time of
the donation;

b. Those made between persons found guilty of the same criminal offense, in consideration
thereof;

c. Those made to a public officer or his wife, descedants and ascendants, by reason of his
office.

In the case referred to in No. 1, the action for declaration of nullity may be brought by the
spouse ofthe donor or donee; and the guilt of the donor and donee may be proved by
preponderance of evidence in the same action (Art. 739, NCC).

2. Incapacity to succeed by will shall be applicable to donations inter vivos (Art. 740, NCC). See
Art. 1027, NCC.

Grounds for revocation

1. If the donor, after the donation, should have legitimate or legitimated or illegitimate children,
even though they be posthumous;

2. If the child of the donor, whom the latter believed to be dead when he made the donation,
should turn out to be living;

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3. If the donor subsequently adopt a minor child;

4. Donee fails to comply with any of the conditions which the former imposed upon the latter;

5. By reason of ingratitude in the following cases:

a. If the donee should commit some offense against the person, the honor or the property of
the donor, or of his wife or children under his parental authority;

b. If the donee imputes to the donor any criminal offense, or any act involving moral
turpitude, even though he should prove it, unless the crime or the act has been committed
against the donee himself, his wife or children under his authority;

c. If he unduly refuses him support when the donee is legally or morally bound to give
support to the donor.

Grounds for reduction

1. Failure of the donor to reserve sufficient means for support;

2. Failure of the donor to reserve sufficient property to pay debts;

3. Inofficiousness; and

4. Birth, appearance or adoption of a child.

Innofficious Donations
1. Every donation inter vivos, made by a person having no children or descendants, legitimate
or legitimated by subsequent marriage, or illegitimate, may be revoked or reduced as
provided in the next article, by the happening of any of these events:

a. If the donor, after the donation, should have legitimate or legitimated or illegitimate
children, even though they be posthumous;

b. If the child of the donor, whom the latter believed to be dead when he made the
donation, should turn out to be living;

c. If the donor subsequently adopt a minor child (Art. 760, NCC).

2. In the cases referred to in the preceding article, the donation shall be revoked or reduced
insofar as it exceeds the portion that may be freely disposed of by will, taking into account

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 the whole estate of the donor at the time of the birth, appearance or adoption of a child (Art.
761, NCC).

3. Donations which in accordance with the provisions of Article 752, are inofficious, bearing in
mind the estimated net value of the donor's property at the time of his death, shall be reduced
with regard to the excess; but this reduction shall not prevent the donations from taking effect
during the life of the donor, nor shall it bar the donee from appropriating the fruits.

For the reduction of donations the provisions of this Chapter and of Articles 911 and 912 of
this Code shall govern (Art. 771, NCC).

4. Only those who at the time of the donor's death have a right to the legitime and their
heirs and successors in interest may ask for the reduction or inofficious donations.

Those referred to in the preceding paragraph cannot renounce their right during the
lifetime of the donor, either by express declaration, or by consenting to the donation.

The donees, devisees and legatees, who are not entitled to the legitime and the creditors of
the deceased can neither ask for the reduction nor avail themselves thereof (Art. 772,
NCC).

5. If, there being two or more donations, the disposable portion is not sufficient to cover all of
them, those of more recent date shall be suppressed or reduced with regard to the excess
(Art. 773, NCC).

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 Prescription
Prescription is a means of acquiring ownership and other real rights or provided by law
losing rights or actions to enforce such rights through the lapse of time (Art. 1106, NCC).
Prescription may be acquisitive or extinctive.

1. Acquisitive prescription is the acquisition of ownership and other real rights through
possession of a thing in the manner and under the conditions provided by law. Acquisitive
prescription of dominion and other real rights may be ordinary or extraordinary.

a. Ordinary acquisitive prescription requires possession of things in good faith and with just
title for the time fixed by law (Art. 1117, NCC).

The good faith of the possessor consists in the reasonable belief that the person from whom
he received the thing was the owner thereof, and could transmit his ownership (Art. 1127,
NCC).
For the purposes of prescription, there is just title when the adverse claimant came into
possession of the property through one of the modes recognized by law for the acquisition of
ownership or other real rights, but the grantor was not the owner or could not transmit any
right (Art. 1129, NCC).

The title for prescription must be true and correct (Art. 1130, NCC).

b. Article 1137 of the New Civil Code fixes the extraordinary prescription and other real
rights over immovables at thirty years.

Ownership and other real rights over immovable also prescribe through uninterrupted
adverse possession thereof for thirty years, without need of title or of good faith (Art. 1137,
NCC).

The ownership of personal property also prescribes through uninterrupted possession for
eight years, without need of any other condition (2nd par, Art.1132, NCC).

2. Extinctive prescription is the loss or extinguishment of property rights or actions through the
possession by another of a thing for the period provided by law or through the failure
to bring the necessary action to enforce one’s right within the period fixed by law. This is also
known as limitation of actions (Morales vs. Court of First Instance, 97 SCRA 872).

Requisites
1. In case of ordinary acquisitive prescription:

a. Capacity to acquire by prescription;

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 b. The object must be susceptible of prescription;
c. The possession must be in concept of owner, public, peaceful, continuous and
uninterrupted.
d. The possession must be in good faith;
e. The possession must be by virtue of a just title;
f. The period of possession must be four (4) years if the object is movable or ten (10) years if
it immovable (Arts. 1118-1125, 1132, 1134, NCC).

2. In case of extraordinary acquisitive prescription:

a. Capacity to acquire by prescription;
b. The object must be susceptible of prescription;
c. The possession must be in concept of owner
d. The period of possession must be eight (8) years if the object is movable or thirty (30) years
if it immovable (Arts. 1118-1125, 1132, 1137, NCC).

Prescriptive period
1. The following actions must be filed within one (1) year:

a. For forcible entry and detainer;

b. For defamation.

All other actions whose periods are not fixed in this Code or in other laws must be brought
within five years from the time the right of action accrues.

2. However, when the action arises from or out of any act, activity, or conduct of any public
officer involving the exercise of powers or authority arising from Martial Law including the
arrest, detention and/or trial of the plaintiff, the same must be brought within one (1) year
(As amended by PD No. 1755 Dec. 24, 1980).

3. The following actions must be instituted within four (4) years:

a. Upon an injury to the rights of the plaintiff; and
b. Upon a quasi-delict.

4. The following actions must be commenced within six (6) years:

a. Upon an oral contract; and
b. Upon a quasi-contract.

5. The following actions must be brought within ten (10) years from the time the right of action
accrues:
a. Upon a written contract;
b. Upon an obligation created by law; and
c. Upon a judgment.
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26 December 2020