University of San Carlos The subject matter of a donation may be a thing or right.

A person
School of Law may be a donee although he is incapacitated to enter into a contract if
This compilation is based on Atty. Maricris Bathan-Lasco’s syllabus, the book of De Leon, he is not specially disqualified by law to accept donation.
Paras and Rabuya, and notes of Atty. Tanya Ibañez /JMM/
The acceptance or consent of the donee is required because no
one can be obliged to receive a benefit against his will. It applies to all
Donation kinds of donations because the law does not make any distinction.

Concept, Nature, and Effect of Donation Since a donation mortis causa takes effect only after the donor’s
death (infra.), it is only after the latter’s death that acceptance of the
donation may be made
Art. 725. Donation is an act of liberality whereby a person disposes
gratuitously of a thing or right in favor of another, who accepts it. Kinds of Donation
Concept of donation
Art. 726. When a person gives to another a thing or right on account
In its generic sense, the term donation includes all forms of of the latter’s merits or of the services rendered by him to the
gratuitous dispositions. It is to be considered apart from: donor, provided they do not constitute a demandable debt, or when
(1) Donation mortis causa (728) the gift imposes upon the donee a burden which is less than the
(2) Condonation or remission of debt (1270) value of the thing given, there is also a donation.
(3) Donation propter nuptias (Family Code) It may be classified as follows:
The donation the article speaks of and which is governed by Title (1) As to taking effect:
III is the donation proper or the true (or real) donation. It is sometimes a. Inter vivos – which takes effect during the lifetime
simply referred to as “ordinary donation’’ as opposed to the other kinds of the donor;
of donation. b. Mortis causa – which takes effect upon the death
Nature and Effect of Donation. of the donor
c. Propter nuptias – made by reason of marriage and
 it is really a contract (Art. 1305.), with all the essential requisites before its celebration, on consideration of the same,
(consent of both parties, subject matter and cause) of a contract. and in favor of one or both of the future spouses.
 It falls under contracts of pure beneficence, the consideration (2) As to consideration:
being the mere liberality of the benefactor. The legal provisions on
contracts suppletorily apply to donation. However, the Civil Code a. Pure or simple – the cause of which is the pure
considers donation not among the contracts that transfer liberality of the donor in consideration of the
ownership but as a particular mode of acquiring and transmitting donee’s merits. This is donation in tis truest form;
ownership. b. Remuneratory or compensatory – that which is
given out of gratitude on account of the services
Heirs of Florencio v. Heirs De Leon rendered by the donee to the donor, provided they
don’t constitute a demandable debt.
As a mode of acquiring ownership, donation results in an c. Modal – which imposes upon the donee a burden
effective transfer of title over the property from the donor to the less than the value of the gift.
donee and is perfected from the moment the donor is made aware d. Onerous – the value of which is considered the
of the acceptance by the donee, provided that the done is not equivalent of the consideration for which it is given
disqualified or prohibited by law from accepting the donation. Once or that made for a valuable consideration and is
the donation is accepted, it is generally considered irrevocable, and thus governed by the rules on obligations and
the donee becomes owner of the property, except on account of contracts.
officiousness, failure of the donee to comply with the charge imposed (3) As to effectivity or extinguishment
on the donation, or ingratitude. The effect of donation is to reduce
a. Pure – not subject to any condition (uncertain
the patrimony or asset of the donor and to increase that of the donee.
event) or period (terms);
Hence, the giving of a mortgage or any other security does not
b. Conditional – subject to a condition suspensive or
constitute a donation.
resolutory; and
The acceptance, to be valid, must be made during the lifetime of c. With a term – subject to a period, suspensive or
both the donor and the donee. It must be made in the same deed or resolutory.
in a separate public document, and the donee's acceptance must
(4) From the viewpoint of occasion:
come to the knowledge of the donor.
a. ordinary donation
Registration of the deed in the Office of the Register of Deeds or
b. donation propter nuptias (in consideration of
in the Assessor's Office is not necessary for it to be considered valid
marriage).
and official. However, the necessity of registration comes into play
(5) From the viewpoint of object donated:
only when the rights of third persons are affected.
a. Corporeal property —
i. donations of real property
ii. donations of personal property
Requisites of Donation b. Incorporeal property — donations of alienable
They are as follows: rights.

(1) The donor must have capacity to make the donation of thing Remuneratory Donation
or right; The motivating cause is gratitude, acknowledgement of a favor, a
(2) He must have the donative intent (animus donandi) or intent desire to repay for past services rendered by the donee to the donor;
to make the donation out of liberality to benefit the donee; hence, a donation given for future services cannot remuneratory.
(3) There must be delivery, where actual or constructive, of the
(1) It is necessary that the past services to be repaid “do not
thing or right donated; and
constitute a demandable debt’’; otherwise, the transfer
(4) The donee must accept or consent to the donation.
becomes a payment, not a donation and furthermore, the
Donation of an immovable property – the law further requires that the value of the services must not be equivalent to that of the
donation be made in a public document and that the donation for otherwise, the donation becomes onerous.
acceptance thereof be made in the same deed or in a A debt is demandable when it can be legally demanded
separate public instrument. or enforced by the donee against the donor who has thus an
obligation to pay it. But a debt that has been renounced is not
 in cases where the acceptance is made in a separate
a demandable debt.
instrument, it is mandated that the donor be notified thereof in
an authentic form, to be noted in both instruments
 (2) A donation on made to one who saved the donor’s life or his would be deemed not imposed following the rule in
properties or took care of the donor while the latter was ill, or testamentary disposition. The donation will be considered as
to a lawyer who renounced his fees for services rendered to simple. – both are gratuitous
the donor, falls under this class of donation. (2) When donation rendered void – if the donation is onerous (or
(3) While technically a gratuity is different from a donation, in modal, as to its onerous portion), the illegal or impossible
condition will render it void. Being contractual in nature, the
substance, they are the same. A gratuity is similar to a
pension and is essentially a remunerative donation. Thus, it rule applicable would be that found in Art. 1183.
was said that a “pension is a gratuity only when it is granted
for services previously rendered, and which at the time they Distinctions between Donation inter vivos and Donation
were rendered gave rise to no legal obligation.’’ Or stated in
mortis causa
another way, a “gratuity is a mere bounty given by the
Government in consideration or recognition of meritorious
services and springs from the appreciation and graciousness Inter vivos Mortis causa
of the Government’’ or “something given freely, or without
recompense, a gift; something voluntarily given in return for a Takes effect during the lifetime Takes effect upon the death of
favor or service; a bounty, a tip.’’ of the donor the donor-testator
Modal donations. Made out of donor’s pure Made in contemplation of his
generosity. death without the intention to
In a modal donation, a burden (which is necessarily future) less
lose the thing or its free disposal
than the value of the gift is imposed upon the donee. If the burden is
in case of survival.
considered the equivalent of the thing or right given, then the donation
is an onerous one. The burden may consist in a real or personal charge Valid event if the donor should Void should the donor survive
which is capable of being valued in terms of money. survive the donee the donee
Examples of this kind of donation are: Must follow the formalities of Must follow the formalities for
(1) One made with the charge that the donee “defray the donation; otherwise it is void the validity of a Will for it is in
expenses of the subsistence and burial’’ of the donor and “if and cannot transfer ownership. reality a legacy or devise;
perchance anything should remain from the price of the land, otherwise it is void and cannot
the surplus of the said expenses is granted to him by me’’;1 transfer ownership.
(2) One made with the condition that the person accepting it on Must be accepted by the donee Being in the nature of a
behalf of the minor donees “should defray his [donor’s] during his lifetime testamentary disposition, can
lodging, food, clothing, and laundry, and fulfill the other only be accepted after the
obligations stated in the donation,’’ provided that the burden donor’s death.
is less than that of the donation;2
(3) One imposing upon the donee the obligation to give a life Cannot be revoked except for Always revocable at any time
pension (with a lesser value) to the donor or to a third person; grounds provided for by law and for any reason before the
(4) A donation of a parcel of land to a municipal corporation to be donor’s death.
used exclusively for some specified public purpose, such as a The right to dispose of the The right to dispose is retained
public park or school site;3 and property is completely by the donor while he is still
(5) A donation of a parcel of land on the condition that the conveyed to the donee alive
donation shall be deemed revoked if the donee fails to build a (although certain reservation as
house and reside therein or establish a school within a certain to possession and enjoyment,
period of time. for example may be made)
Subject to Donor’s Tax Subject to Estate Tax
Donation with Mixed Features
NOTE: Donations mortis causa being in the form of a will are never
A donation that has 2 or more natures (i.e., partly onerous and accepted by the donees during the lifetime of the donor.
partly simple).
A modal donation has a dual nature, i.e., it is partly onerous Designation given to donations not conclusive.
and partly simple — the portion equivalent to the burden is onerous and
is governed by the rules on obligations and contracts including those as
to form, while the portion exceeding the value of the burden imposed, is Whether a donation is inter vivos or mortis causa depends upon the
simple and must follow the form of donations. nature of the disposition made as reflected from the provisions contained
in the donation and the intention of the parties as demonstrated by the
circumstances attendant upon its execution.
Effects of Illegal or Impossible Condition
(1) The designation of the donation as mortis causa (or inter
vivos) or a provision in the deed of donation to the effect that
Art. 727. Illegal or impossible conditions in simple and the donation is “to take effect at the death of the donor,” and
remuneratory donations shall be considered as not imposed. similar statements are not controlling criteria. Such
statements are to be construed together with the rest of the
Art. 727 is different from the rule in contracts where the presence of instrument in order to give effect to the real intent of the
impossible or illegal conditions renders the obligation itself VOID. transferor.
(2) The fact that the donation is given in consideration of love and
Conditions are illegal when they are contrary to law, morals, good affection or past or future services is not an exclusive
customs, public order or public policy, and impossible, when they, in characteristic of donations inter vivos because a transfer
the nature of things, cannot exist or cannot be done. In the law of mortis causa may be made also for those reasons.
contracts, the presence of such conditions annuls the obligation which (3) The fact that the donor reserved sufficient properties for his
depends upon them. Hence, both the obligation and the condition are maintenance in accordance with his standing in society, may
void. The reason behind the law is that the obligor knows his obligation indicate his intention to part with the ownership of the property
cannot be fulfilled. He has, therefore, no intention to comply with his donated.
obligation.
In case of doubt, the conveyance should be deemed donation mortis
(1) When condition is not deemed imposed – the illegal or causa in order to avoid uncertainty as to the ownership of the property
impossible condition is a simple or remuneratory donation subject to the deed. The legal principle enunciated in Art. 1378 is that in

1
Castillo v. Castillo, 23 Phil. 364 [1912]
2
Di Siock Jian v. Sy Lioc Suy, 43 Phil. 562 [1922].
3
City of Manila v. Rizal Park Co., 53 Phil. 515 [1929].
case of doubt relative to a gratuitous contract, the construction must be
that entailing “the least transmission of right and interests.” would take effect only after the donor’s death simply meant that the
possession and enjoyment of the fruits of the properties donated
should take effect only after the donor’s death and not before.
Donations to be delivered after the donor’s death.
.
A distinction must be made between the actual donation and the
execution thereof. That the donation is to have effect during the lifetime
Sicad v. Court of Appeals
of the donor does not mean that the delivery of the property must be
made during his life.
“All rents, fruits and proceeds of the donated properties shall
Donations in praesenti – take effect during the lifetime of the donor, remain for the exclusive benefit and disposal of the donor, during her
but the property shall be delivered after the donor’s death. Such lifetime, and that without the knowledge and consent of the donor,
donations are inter vivos although the subject matter is not delivered the donated properties could not be disposed of in any way” This is
at once, or the delivery is to be made post mortem, which is a simple donation mortis causa because the donee is expressly prohibited to
matter of form and does not change the nature of the act. make any disposition of the property during the donor’s lifetime.
The fruits shall belong to the donee from the time of acceptance
unless otherwise provided by the donor.
(1) Title to property is conveyed subject only to life estate of Sambaan v. Villanueva
donor.
— “I also declare that it is the condition of the donation that Donation was made in consideration of the affection and love of
the donee cannot take possession of the properties donated the donor for the donee but the donation was to take effect after the
before the death of the donor x x x; that the donee should donor’s death. This is a donation inter vivos because death was not
cause to be held annually masses for the repose of the the consideration for the donation but rather the donor’s love and
donor’s soul, and that he should defray the expenses for the affection for the donee. That the properties would be delivered only
donor’s funeral.’’ after the donor’s death was just a mere modality of the contract which
This is donation in praesenti and conveyed title to the did not change it inter vivos character.
properties in dispute subject only to the life estate of the donor.
(2) Possession and enjoyment of property to take effect only
after donor’s death. Instances of Donation inter vivos.
– In another case, it was provided in the deed of donation,
which was also styled as mortis causa, that the donation was
made in consideration of the services rendered by the donee The donation given below have also been held to be inter vivos.
to the donor and of the donor’s affection for the donee; that 1. Donor warrants title to property over which she reserved lifetime
donor had reserved what was necessary for his maintenance, usufruct.
and that the donation “ha de producir efectos solamente por 2. Donation accepted by donees who were given limited right of
muerte de la donante.’’
disposition, with donor reserving beneficial ownership.
It was ruled that the donation was inter vivos because
the stipulation that the donation would take effect only after 3. Donation was executed out of love and affection as well as a
the donor’s death “simply meant that the possession and recognition of the personal services rendered by the donee.
enjoyment of the fruits of the properties donated should take 4. Ownership and possession of property immediately transferred
effect only after the donor’s death and not before.’’ to donee but his right to fruits to begin only after donor’s death.
Here, the donee is expressly prohibited to make any 5. Causes of revocation specified.
disposition of any nature or for any purpose during the donor’s 6. Donor states that he makes a perfect, irrevocable and
lifetime. consummated donation.
(3) Property donated in consideration of love and affection 7. Donor and donee prohibited from alienating and encumbering
to be delivered only after donor’s death. the property.
— In one case, the deed of donation provided that the same 8. Usufruct reserved by the donor.
was made in consideration of the affection and love of the
donor for the donee but that donation was “to take effect after Instances of Donation Mortis Causa.
the donor’s death.”
The donation was held to be inter vivos because death was 1. Registration of deed of donation prohibited.
not the consideration for the donation but rather the donor’s 2. Donation to take effect and pass title only by and because of
love and affection for the donee. The stipulation that the death.
properties would be delivered only after the donor’s death was 3. Donated properties to be delivered after donor’s death.
regarded as a mere modality of the contract which did not 4. Right to dispose and enjoy reserved by donor.
change its inter vivos character. The donor had stated in the 5. Donation makes no actual conveyance.
deed that he was donating, ceding and transferring the
donated properties to the donee.
Effect of a Suspensive Condition on Donation Inter Vivos
Laureta v. Mata
Condition – an uncertain event which may or may not happen.
“I also declare that it is the condition of the donation that the
donee cannot take possession of the properties donated before the Suspensive condition – the acquisition of rights shall depend upon the
death of the donor” This is donation in praesenti and conveyed title happening of the event which constitutes the condition.
to the properties subject only to the life estate of the donor. A donation subject to a suspensive condition takes effect only upon the
fulfillment of the condition.
(1) When the donor intends the donation to take effect during his
lifetime, but he imposes suspensive condition which may or
Concepcion v. Concepcion may not take place beyond his lifetime. – the happening of the
condition does not change the nature of the act as a donation
Donation was made in consideration of the services rendered by inter vivos. – the condition is merely an accidental clause in
the donee to the donor and of the donor’s affection for the donee; the donation and does not control the donor’s desire to see
that donor had reserved what was necessary for his maintenance the condition fulfilled during his lifetime.
and that the donation would take effect only after the donor’s death. (2) Exception: when the donor really intended that the donation
This is donation inter vivos because the stipulation that the donation should take effect after his death. – donation mortis causa.
 donation made by one who does not have the free disposal of the thing
Effect of a Resolutory Condition on Donation Inter Vivos donated and to alienate it shall not be valid.
Capacity of a Husband
Resolutory condition – the extinguishment or loss of rights already
acquired by the donee shall depend upon the fulfillment of the condition. A husband is capacitated to enter into a valid contract if he is sui
juris. He is also capacitated to donate to his own children, whether of a
- ownership of the property is immediately transferred to the donee upon
perfection of the donation once acceptance is made know to the donor, present or a prior marriage, and whether legitimate or illegitimate,
notwithstanding the resolutory condition, donation being a mode of provided that the donation be taken from his capital or individual
property. But insofar as donations of the conjugal partnership are
acquiring and transmitting ownership.
concerned, he is allowed to donate same, without his wife’s consent only
Ownership will only re-vest to the donor if the condition is not in the following cases:
fulfilled.
(1) moderate donations given for charity or on occasions of family
(1) Donation subject to a resolutory condition takes effect rejoicing or family distress.
immediately but shall become inefficacious upon the
(2) donations or promises to common legitimate children (those
happening of the event which constitutes the condition.
of the husband and the wife) for the exclusive purpose of
(2) When a person donates land to a university on the condition commencing or completing a professional or vocational
that the latter would build upon the land a medical school, the course or other activity for self-improvement.
condition is a resolutory one. The donation has to be valid
Capacity of the Wife
before the fulfillment of the condition. If not complied with, the
donation may be revoked, and all rights shall be deemed lost Unless she is the administratrix of the conjugal partnership, she
and extinguished. cannot donate conjugal property without the husband’s consent except
(3) Even if the donation is subject to the resolutory condition of in the case of a moderate donation for charity or on occasions of family
the donor’s survival, the donation is still inter vivos. rejoicing or family distress. With respect to her exclusive property, she
may, if of age, dispose of the same without the consent of the husband.
Provisions Governing Inter Vivos Donation Status of a Donation Made by an Incapacitated Person

Art. 732. Donations which are to take effect inter vivos shall be It is submitted that following the laws in contracts (which are of
governed by the general provisions on contracts and obligations suppletory application to simple donations) said donations should be
merely considered voidable. The same answer should be given in
in all that is not determined in this Title.
case there was vitiated consent (as in the case of fraud or intimidation).
Suppletory Effect of Rules on Contracts
(1) The law of contracts and obligations has suppletory effect
to the provisions of this title on ordinary donations. Corporation, Power to Make Donation
(2) After all, a donation is really a gratuitous contract.
Sec. 36(9) of B.P. Blg. 68 (The Corporation Code of the Philippines)
Perfection of Donation 9. “To make reasonable donations, including those for the
public welfare or for hospital, charitable, cultural, scientific,
 From the time of knowledge by the donor that the donee has civic, or similar purpose: Provided, That no corporation,
accepted. domestic or foreign, shall give donation in aid of any political
 (The knowledge may of course be actual or constructive). party or candidate or for purposes of partisan political activity.”
GR: under the Corporation Code, corporation may make
 No acceptance, the donation will be null and void.
reasonable donations, including those for the public welfare or for
 Acceptance (inter vivos) must be made during the lifetime of the hospital, charitable, cultural, scientific, civic, or similar purposes.
donor and of the donee.
EXPN: No corporation may give donation in aid of any political
 If the donation and acceptance are in the same public instrument, parties or candidate or for purposes of partisan political activity.
signed by both donor and donee in the presence of witnesses, the
donation is deemed already perfected inasmuch as knowledge
Donation by the Guardian or Trustee
of the acceptance is established by the instrument itself.
 Where the acceptance by the donee was made in a separate
instrument, there must be proof that a formal notice of such GR: Where donation simple. — Guardians and trustees cannot be
acceptance was received by the donor, and in case the donors of their ward’s properties for the simple reason that they are not
donation involves immovable property, noted in both the deed of the owners of the same.
donation and the separate instrument embodying the acceptance. Trustees have only the legal but not the equitable or beneficial title
 If the donor revokes the donation before learning of the to the property held in trust.
acceptance by the donee, there is no donation. EXPN: Where donation onerous. —If the donation is onerous and is
 As between the parties to the donation and their assigns, the beneficial to the beneficiary.
registration of the deed of donation with the Registry of
Deeds is not needed for its validity and efficacy.
Araneta v. Perez

Trustee donates with court approval to the City of Manila a parcel

Person who may Give or Receive a Donation of land to save the trusteeship realty tax and relieve it from the duty
of maintaining the lot in usable condition as a street. When the
Art. 735. All persons who may contract and dispose of their donation is clearly in the interest of the beneficiaries, the same may
property may make a donation. be permitted.
Capacity of the Donor – the donor must have both before he may make
a donation:
(1) The capacity to contract; and Time for Determination of Capacity of the Donor
(2) The capacity to dispose (by acts inter vivos) of his
property.
 Under the Art. 737, the donor’s capacity must exist at the time of
Donations inter vivos are, to a certain extent, contractual in nature, making the donation and not from the perfection of the donation
and are a mode by which property is alienated or disposed of. Hence, (the time of knowledge by the donor of the acceptance)
those who cannot give consent to a contract cannot be donors; and
 However, a juridical absurdity arises in case the donor becomes  Those persons who would legally represent them if they were
incapacitated (e.g., insane) at the time the acceptance is already born must make the acceptance in cases of donations to
conveyed to him. Since legally, the donor cannot be said to have conceived and unborn children.
knowledge of the acceptance, there can be no perfection of the
Can a conceived and unborn child accept a donation?
donation.
Technically, no, because it is not yet a natural person. But a conceived
 Hence, to reconcile, the phrase “making of the donation” should child is considered born for all purposes that are favorable to it.
be construed to mean “perfection of the donation”.
When is a child considered born?
Art. 801. Supervening incapacity does not invalidate an
effective will, nor is the will of an incapable validated by the  If alive at the time it is delivered
supervening of capacity.  If the fetus had an intra-uterine life of less than 7 months – deemed
born if it lives at least 24 hours after its delivery
What is the effect of donations made to incapacitated persons?
Capacity of the Donee
They shall be considered void, even if simulated under the guise of
another contract or through an intermediary.
 All persons, whether natural or artificial, may be donees.
 A donee may accept donation as long as he is “not specially Who are incapacitated persons contemplated in this provision?
disqualified by law.” Those who are specially disqualified by law to become donees.
 Donations may be made to: Donation of the Same Thing to Different Donees.
(a) incapacitated persons; and/or
Art 1544 – Provision on Double Sale (same concept)
(b) conceived and unborn children.
Movable: Ownership shall be transferred to the person who have:
Special Disqualification (739, 740, 743) (a) First to take possession in good faith;
CIVIL CODE (b) Person with the oldest title
1. The following donations shall be void (ab initio): Immovable: Ownership shall be transferred to the person who have:
a. Those made between persons who were guilty of adultery or (a) First to register (Registry of Property) in good faith;
concubinage at the time of the donation; (b) First to take possession in good faith;
b. Those made between persons found guilty of the same criminal (c) Person with the oldest title.
offense, in consideration thereof;
c. Those made to a public officer or his wife, descendants and
ascendants, by reason of his office. Acceptance of Donation
In the case referred to in No. 1, the action for declaration of Whom made?
nullity may be brought by the spouse of the donor or donee; and
the guilt of the donor and donee may be proved by preponderance How may the donee accept the donation?
of evidence in the same action. 1. Personally
2. Incapacity to succeed by will shall be applicable to donations inter 2. Through his authorized agent
vivos. If made through an agent, what are the requirements?
3. Donations made to incapacitated persons shall be void, though The agent must have a special power (SPA) for the purpose or a
simulated under the guise of another contract or through a person general power with a sufficient power to accept.
who is interposed.
When made?
TN: The prohibitions apply to testamentary provisions and to life
insurance. Donation inter vivos – during the lifetime of donor and donee.

FAMILY CODE (87, 125) TN: Even if donation is made during their lifetimes but the
donor dies before the acceptance is communicated to him, the
1. Donation between husband and wife during the existence of the donation is not perfected.
marriage are void, except moderate gifts. The Prohibition shall also
apply to persons living together without valid marriage. Donation mortis causa – after the death of donor since they partake of
2. Neither spouses may donate any CPG property without consent of a will, and are governed by the rules on succession.
the other. TN: If the acceptance was made before the donor’s death, the
acceptance is void
SSS v. David Acceptance by Representative
A concubine who did not know that the man she lives with is The following requisites must be present:
married cannot be guilty of concubinage. Hence, she is not (1) Acceptance is made through the parents, legal representative,
disqualified from being an insurance beneficiary. or authorized agent of the donee;
(2) The property donated is immovable; and
(3) The acceptance is not made in the same deed of donation but in
Who are incapable of becoming donees? a separate public instrument.
1. Priest who heard the confession of the donor during his last illness The requirement of notification of the donor and notation in both
2. Relatives of such priest within the fourth degree instruments that such notification has been made is necessary for the
3. Any attesting witness to the execution of a will validity and perfection of the donation.
4. Any physician, surgeon, nurse, health officer who took care of the
donor during his last illness
Formalities
5. Individuals, associations and corporations not permitted by law to
inherit
DONATION OF MOVABLE
Donation to Minors and Other Incapacitated Person (741)
It may be made orally or in writing.
How is acceptance made when the donation is to minors or others
Oral donation – requires the simultaneous delivery of the thing or of the
without capacity to contract?
document representing the right donated.
The acceptance must be made by the parents or legal
Except: Value of property exceeds P5,000 – donation and acceptance
representative of the donee. Law makes no distinction between simple
must always be made in writing.
and onerous donations. In either case, acceptance must be made by the
parents or legal representative (.: ≤5k – may be made orally or in writing)
Donation to Conceived and Unborn Children (742)
 Yes, provided he reserves sufficient property in ownership or in usufruct
Gentoo v. De Lorenzo for the support of himself and of all relatives who are entitled to be
supported by him at the time of the perfection of the donation.
Donor gave certificates of stock to her son X with instruction to
transfer the same to him and his brother Y, who at the time of the What is meant by present property?
delivery was not present. There was no showing that Y authorized C Property which the donor can rightfully dispose at the time of the
to accept for the both of them. Is the donation valid? NO. The donation.
donation was oral but there was no simultaneous delivery which
could not be done in view of the absence of Y. If the donor donated all his present property without the required
reservation, is the donation void in its entirety?
No. It is only subject to reduction by the court on petition of the party
DONATION OF IMMOVABLE prejudiced by the donation.

Formalities for Donation of Real Property Is the rule on reservation applicable also to onerous ones and
donations mortis causa?
Donation of an immovable must be made in a public document
specifying the property donated and the value of the charges which the No, because the donor receives something in return for what he gives in
donee must satisfy. onerous donations. Also, donations mortis causa take effect only after
the donor’s death, hence insofar as the donor is concerned, he would
already be dead.
Donation and acceptance are in the same instrument What is the limitation in donations propter nuptias?
1. Donation must be in a public document; It cannot exceed more than 1/5 of the present property of the future
2. Instrument must specify the property donated and the charges, if spouses.
any.
Donation and acceptance are in separate instruments Donation of Future Property Prohibited
1. Donation must be in a public document;
2. Instrument must specify the property donated and the charges, if  Future property is anything which the donor cannot dispose of at
any; the time of the donation. Nobody can dispose of that which does
3. Acceptance by the donee must be in a public document; not belong to him. It is immaterial that it may subsequently belong
4. It must be done during the lifetime of the donor. to the donor.
5. Donor must be notified in authentic form of the acceptance of the Future Inheritance – the inchoate right of an heir to inherit. The same
donation in a separate instrument cannot also be donated because it is future property. But upon the death
6. The fact that such notification has been made must be noted in of his predecessor, the inheritance ceases to be future and consequently
both instruments it may be the object of donation even if the properties have not yet been
Is registration necessary for the donation to be considered valid delivered to the heir.
and effective? Are properties whose acquisition is subject to a suspensive
No. The necessity of registration comes into play only when the rights of condition considered future property?
third persons are affected. No. They may be donated because the effects of the fulfillment of the
May a donation be ratified? condition shall retroact to the day of the constitution of the contract.
Yes. In a case, a daughter, as sole heir of her deceased father, executed
Donation Limited to What Donor May Give by WIll
a public document ratifying a donation made by her father which
donation was void for lack of compliance with the legal requisites. The
AMOUNT OF DONATION LIMITED TO WHAT DONOR MAY GIVE BY
ratifications served as a quit claim of her right to the property.
WILL
However, it could not be given retroactive effect to the prejudice of the
No person may give or receive, by way of donation, more than he may
creditors of the estate of the deceased father.
give or receive by will. The donation shall be inofficious in all that it may
When is ownership acquired? exceed this limitation.
From the time the public instrument of donation is simultaneously What is the limitation imposed?
executed and acknowledged by the donor and the donee, since the
A person may not donate more than he can give by will, and a person
execution of a public instrument of conveyance is one of the recognized
may not receive by way of donation more than what the donor is allowed
ways in which delivery of immovable property may be made.
by law to give by will.
JLT Agro v. Balansag When does the limitation apply?
Where the donor has forced or compulsory heirs. The purpose is not to
Title to immovable property does not pass from the donor to the diminish the legitime to which they are entitled.
donee until and unless it has been accepted in a public instrument
and the donor duly notified thereof. When is the limitation enforceable?
Only after the death of the donor because it is only hen when it can be
determined whether or not the donation is inofficious by contrasting its
value with the net value of the estate of the donor deceased.
Ortiz v. Court of Appeals
The absence in the deed of any reservation in favor of the donor
is proof that no such reservation was ever intended considering that
Donation to Several Donees Jointly
under the law, a donation of immovable by public instrument is
required to specify the “value of the charges” that the donee must
assume. DONATION TO SEVERAL DONEES JOINTLY
What are the rules when donation is to several donees jointly?
(1) Donation is understood to be in equal shares
(X donates to A and B P20, 000 without specification of their shares. A
Effect of Donations and Limitations Thereon and B gets P10, 000 each)

Reservation of Sufficient Means for Support of Donor (2) There shall be no right of accretion among the donees
(If A for some reason declines the donation, B shall not get A’s share
unless the donor has intended otherwise)
May a donor donate all his present property? (3) If the donees are husband and wife, there shall be a right of
accretion.
 (If A and B are husband and wife, and A declines the donation, his TN: Creditors who have been defrauded may exercise the subsidiary
share goes to B, unless otherwise provided by the donor) right of rescission, unless the property donated has passed to the hand
What is the effect if there is no accretion among the donees? of third persons in good faith for value.

One cannot accept independently for his co-donee who is not present.

Rights and Action Revocation and Reduction of Donations

Grounds
What are the rules?
(1) Donee is subrogated to all the rights and actions which in case
of eviction would pertain to the donor. (1) Revocation – this affects the whole donation and is allowed during
(Ex. The property donated by A to B was purchased from X the lifetime of the donor.
and the property had hidden defects or B was evicted
therefrom, B can bring the proper action against X.) The grounds are:
a. Birth, appearance, or adoption of a child (Art. 760.);
(2) If donation is simple or remunerative, the donor is not liable b. Non-fulfillment of a resolutory condition imposed by
for eviction or hidden defects because the donation is the donor; and
gratuitous, except if donor is in bad faith c. Ingratitude of the donee.
(3) If donation is onerous, the donor is liable on his warranty, but (2) Reduction – this generally affects a portion only of the donation
only to the extent of the burden. (unless the donee has no free portion left) and is allowed during the
lifetime of the donor or after his death.
Donation w/ Right of Donor to Dispose of Part
Reserved The grounds are:
a. Failure of the donor to reserve sufficient means for
support of himself or dependent relatives;
 The donor may reserve the right to dispose of some of the things b. Failure of the donor to reserve sufficient property to
or part of the thing donated or some amount or income thereof. pay off his existing debt;
The donation is actually conditional, and the condition is fulfilled if c. Inofficiousness – the donation exceeds that which
the donor dies without exercising the right he reserved. the donor can give by will; and
d. Birth, appearance, or adoption of a child.
Example: X donates to Y a house and an apartment with the
provision that X could sell the house and give the rents of the A donation that had been duly perfected in
apartment for 5 years to P. The donation of the house with a accordance with law, should “stand until after its
reservation of the right to dispose should be considered mortis revocation should have been asked and granted in the
causa. The donation of the apartment is inter vivos.
proper proceeding.”
A subsequent donation to another “is not the way a
prior donation should be revoked.
Naked ownership and usufruct Separately donated

The donor may donate separately the naked ownership (dominium BIRTH, APPEARANCE, OR ADOPTION OF A CHILD
directum) to one person and the usufruct (dominium utile) to another. Applicable when the donor, at the time he made the donation, did not
(1) The donee must be living at the time of the donation; have any child or descendant, or erroneously thought so.
(2) A donation to a child who was not yet conceived at the time it Birth of a child
was made is void.
– The donor had no child at the time of the donation and thereafter, a
(3) If the property is immovable – the formalities must be
child was born even if posthumous (after the death of the donor)
complied with since the naked ownership and usufruct over
real property are real properties themselves. Suppose at the time of the donation, the child was already
conceived but not yet born, what is the rule?
It depends if the donor was aware of such conception. If yes,
Donation with Provision for Reversion Art 771 applies and he cannot revoke the donation upon the
birth of the child. If not, the situation is similar to appearance
The donor may provide for reversion whereby the property donated shall of an absent child. Hence, the subsequent birth of the child
go back to the donor or some other person, for any case and should revoke or reduce the donation.
circumstances. Appearance of a child
What is required for reversion in favor of other persons to be valid? – Donor had only one child whom he believed to have already died at
They must be living at the time of the donation. Hence, reversion in favor the time of the donation. (Descendant e.g. grandchild is not covered)
of an unconceived child is void. Adoption of a child
What is the effect of the nullity of the reversion? – Subsequent adoption of a minor child is also a ground for the
It shall not invalidate the donation. The reversion which is merely an revocation or reduction of a donation. (Note: only minor child)
accessory clause is simply disregarded.
EXTENT AND BASIS OF REVOCATION OR REDUCTION
Donation of Future Property Prohibited
What is the extent of revocation or reduction?

Where donor imposes obligation upon the donee The amount subject to revocation or reduction is the excess over the
portion that may be freely disposed of by will.
(1) Donee is liable to pay only debts previously contracted
(2) He is not liable for debts in excess of the value of the donation What is the basis of revocation or reduction?
received The value of the whole estate of the donor at the time of the birth,
Where there is no stipulation regarding the payment of debts appearance or adoption of a child.

(1) Donee is generally not liable to pay the donor’s debts Who has the burden of proof?
(2) Liable only if the donation has been made in fraud of creditors The donor – he must establish the requirements prescribed by law, on
(Always presumed when at the time of the donation, the donor the basis of which revocation or reduction of the donation can be
has not left sufficient assets to pay his debts) adjudged.
(3) Not liable beyond the value of the donation received
What is sought to be protected by Art 760?
 The prospective or presumptive legitime of the child because (2) Fruits of the property which the donee may have received
it is the only portion which cannot be disposed of. Hence, if after having failed to fulfill the condition have to be returned to
donation does not exceed the free portion at the time of the the donor
birth, appearance or adoption, there will be no revocation or (3) Alienations and mortgages made by the donee are void,
reduction, but it may be reduced under Art 771 if it cannot be subject only to the rights of innocent third persons
covered by the free portion computed as of the time of the
donor’s death. What are the remedies of the donor?
OBLIGATION OF DONEE UPON REVOCATION OR REDUCTION
1. Action for revocation
Obligation of donee is dependent upon the property donated. 2. Action for specific performance
 If property is still in his possession – return TN: Only the donor or his heirs have the personality to question the non-
 If he has sold the property – give its value compliance.
 If property has been mortgaged – donor may redeem the
mortgage and donee must reimburse the donor
 If property cannot be returned – return its value at the time of the PRESCRIPTIVE PERIOD OF ACTION
perfection of the donation When may the action be brought?
How is the value at the time of donation determined? Within 4 years from non-compliance with the condition.
The price at which the property is sold is its value. If the price is less than Is court action necessary?
its actual value, donee is not liable for the difference absent proof of bad
faith. Yes, if the donee refuses to return the property or to comply
with the conditions. Donor cannot just execute a deed revoking
PRESCRIPTION OF ACTION FOR REVOCATION OR REDUCTION the donation and adjudicating the property to another person.
Donation is revoked ipso jure by operation of law by the happening of The same is without force and effect, having been done without
any of the events mentioned in Art 760. However, revocation is not self- the intervention of the court.
executory. Resort to judicial action is necessary, but the action is not an May the deed of donation provide for automatic rescission?
action to revoke but one to have the court declare the revocation which
has already taken place by operation for law. Yes, it may provide that violations of the conditions shall cause
the automatic rescission of the contract. Donation is
May the action be renounced? Is it transmissible? automatically revoked without need of a judicial declaration.
No, the action cannot be renounced. Yes, it is transmitted Except: Where the donee denies the donor’s right to rescind.
upon the death of the donor to his heirs. In which case, judicial intervention is necessary to determine
What is the prescriptive period of action for revocation or whether rescission is proper.
reduction? Who has burden of proof?
Four (4) years, depending on the cause: Presumption is that the donee has complied with his obligation.
(1) Birth of the first child – from the birth of the first child The claim that the donee failed to do so is a matter of defense,
(2) Legitimation of a child – from the time of legitimation hence the donor is duty bound to establish non-compliance by
(celebration of the subsequent marriage of the parents) competent evidence.
(3) Adoption of a child –from the date of judgment of the court May the action be renounced? Is it transmissible?
approving the adoption becomes final
(4) Judicial declaration of filiation –from the date when Yes, action may be waived. Yes, the action is transmissible in
judgment declaring filiation becomes final favor of the donor’s heirs and against the donee’s heirs
(5) Appearance of the absent child – from the time the because the right granted is not personal to the donor nor is the
information was received regarding the child’s existence liability of the donee personal to him.
(6) Concurrence of causes – from the earliest cause
(7) Impairment of legitime – governed under the ordinary rules Revocation by reason of Ingratitude of the Donee
of prescription (10 years from the time the right of action
accrues – death of donor-decedent) The donation may be revoked at the instance of the donor by reason of
ingratitude. This provision does not apply to:
Revocation by reason of Failure to Comply w/
1. Donations mortis causa
Conditions 2. Onerous donations
What are the grounds for revocation by reason of ingratitude?
Donation may be revoked by the donor in case the donee fails to comply
with any of the conditions imposed by the donor upon him. (1) If the donee should commit some offense against the person,
honor or property of the donor, his wife or children under his
“Conditions’’ – actually refers to the obligations, charges or burdens parental authority
imposed by the donor for his benefit or that of a third person. Revocation  Criminal conviction of the donee is not required; sufficient that the
implies that there is an existing donation. offense be proved by mere preponderance of evidence in an action for
revocation
What is the period for fulfillment?  “wife” should be understood to mean “spouse”
Within the period fixed by the donor. If no period is fixed, the court shall  Child who is no longer under the donor’s parental authority is not
determine the period. covered
(2) If the donee imputes to the donor any criminal offense, or any
Central Phil. University v. CA act involving moral turpitude, even though he should prove it,
unless the crime or the act has been committed against the
Where the time for the fulfillment of the condition depends upon donee himself, his wife or children under his authority
the exclusive will of the donee, the starting point from which the  Immaterial that the donee can prove his accusation or substantiate his
corresponding action must be instituted by the donor begins with the testimony
expiration of a reasonable period and opportunity for the donee to  Exception: when the crime has been committed against the donee
fulfill what has been charged upon him. himself, his wife or children
 The act involving moral turpitude may not amount to a crime
(3) If he unduly refuses him support when the donee is legally or
What is the effect of non-fulfillment? morally bound to give support to the donor
 Two requisites: (1) refusal to support the donor must be undue
(1) Property donated reverts to the donor or without just reason, (2) donee must be legally/morally
bound to support the donor.
  Donee is not liable to support the donor beyond the value of 2. It was possible for him to bring the action
the property donated. To bar the action, what proof must the donee show?
TN: The enumeration is exclusive, and the act of ingratitude must have 1. Proof that the 1-year period has expired
been committed by the donee himself because the duty of gratitude is 2. That it was possible for the donor to institute the said action
personal. with the said period

TRANSMISSION OF ACTION FOR REVOCATION

Is the action transmissible to the heirs of the donor?
Noceda v. Court of Appeals
GR: NO, because the action to revoke a donation by reason of
The donee’s act of occupying not only the portion of the land ingratitude is pure personal to the donor.
donated to him but also fenced the whole area of the land which Exceptions:
belongs to the donor without the latter’s knowledge and consent is
an act of usurpation which is an offense against property of the donor 1. If the donee killed the donor
and is considered an act of ingratitude. 2. If the donor dies without having known of the act of ingratitude
3. A criminal case against the donee was instituted by the donor but
the donor dies before he could bring the civil action for revocation
4. If action for revocation has already been filed by the donor before
EFFECT OF REVOCATION ON PRIOR ALIENATIONS AND his death
MORTGAGES
May the heirs of the donee be held responsible?
What are the rules?
GR: No. The act of ingratitude of the donee is personal.
1. Alienations and mortgages made by the donee before the
XPN: If the donor has already filed the complaint before the donee’s
complaint for revocation is annotated in the Registry of
death, the suit may be continued against his heirs.
Property, are valid.
Effect: Donor can recover from the donee only the value of the Reduction of Inofficious Donation
property donated at the time of the perfection of the donation or the
sum for which it was mortgaged. Inofficious donations (more than what the donor can give by will) shall
TN: Recovery cannot be made against the third person, unless he be reduced with regard to the excess – upon the death of the donor,
acted in bad faith as when he had actual knowledge of the cause after determining the net value of the estate.
for revocation or the filing of the action. Is an inofficious donation valid during the lifetime of the donor?
2. Later alienations shall be void. Yes, because it is only upon the death of the donor can it be
Effect: Donor can recover the property from the transferee or determined whether it is inofficious or not. Consequently,
mortgagee. during the lifetime of the donor, the donee is the owner of the
property donated and also the owner of the fruits.
Illustrations:
When shall the action to reduce the inofficious donation be
July 10 – X donated the land to Y
brought?
July 20 – Y sold the land to T
July 30 – Y committed the act of ingratitude Within 5 years from the time the right of action accrues (from
Aug 10 – complaint for revocation was annotated on the Reg. of Prop. the time of the donor’s death)
Effect: The sale to T was valid, and the remedy of X is to recover from Who are persons entitled to ask for reduction in case of inofficious
Y the value of the land at the time of the donation. donations?
Only those who at the time of the donor’s death have a right to
July 10 – X donated the land to Y
the legitime and their heirs and successors in interest. Donor is
July 30 – Y committed the act of ingratitude
not included because the inofficiousness can only be
Aug 10 – complaint for revocation was annotated on the Reg. of Prop.
determined after his death.
Aug 15 – Y sold the land to T May the right to ask for reduction of inofficious donations be
renounced?
Effect: The sale is void and X can recover the land from T.
No, it cannot be renounced during the lifetime of the donor.
July 10 – X donated the land to Y
July 20 – Y committed the act of ingratitude
July 25 – complaint for revocation was filed
July 30 – Y sold the land to T (T was aware of the act of ingratitude General Rules
by Y or the pending action by X)
July 31, complaint was annotated on the Reg. of Prop. RETURN BY DONEE OF THE FRUITS OF PROPERTY DONATED
Effect: The sale is void because T acted in bad faith, and therefore, X The rules depend upon the causes of revocation or reduction.
can recover the property from T.
1. Birth, appearance or adoption of a child, ingratitude, inofficiousness
of the donation – only the fruits accruing from the filing of the
PRESCRIPTIVE PERIOD complaint shall be returned.
2. Non-fulfillment of any of the conditions imposed in the donation –
One (1) year from the time the donor had knowledge of the fact and it return the property donated and the fruits accruing from the time of
was possible for him to bring the action. the breach of the condition.
Can an action for revocation by reason of ingratitude be REDUCTION WHERE THERE ARE TWO OR MORE DONATIONS
renounced?
If there being two or more donations, the disposable portion is not
No, it cannot be renounced in advance – what the law prohibits is waiver sufficient to cover all of them, those of the more recent date shall be
prior to the commission of the act of ingratitude. suppressed or reduced with regard to the excess.
Exception: A past ingratitude – can be subject of a valid renunciation What are the rules?
because it can be considered as an act of magnanimity of the donor.
1. The subsequent donations shall first be reduced with regard to the
When does the action prescribe? excess
Within 1 year from the time the donor: 2. If the two donations were perfected at the same time – the
reduction should be proportionated.
1. Had knowledge of the act of ingratitude