DONATION

(Articles 725- 773)

CONCEPT OF DONATION:
Definition:
• It is an act of liberality whereby a person disposes
gratuitously of a thing or right in favor of another,
who accepts it (Article 725)
• It is a gratuitous contract whereby the donor
divest himself, at present and irrevocably, of the
thing given in favor of the donee [Justice Antonio:
Alejandro v Geraldez (78 SCRA 245].
• The one who donates is called the “donor” and the
one who receives the donation is called the
“donee”.
 DONATION
(Articles 725- 773)

 Essential Elements of Donation:

1] The essential reduction of the patrimony of the
donor.
2] The increase in the patrimony of the donee; &
3] The intent to do an act of liberality or “animus
donandi” [Heirs of Rosendo Sevilla Florencio v. Heirs of
Teresa Sevilla de Leon 425 SCRA 447,458-459)]
 In Republic v Guzman(326 SCRA 90) the SC held that
there was no donation when the mother (an American
citizen) executed a deed of quit claim in favor of her son
(also a US citizen), since there was no animus donandi
because the mother merely contemplated a waiver of
her rights, title & interest over the subject lands.
 DONATION
(Articles 725- 773)
 Animus Donandi (Donative Intent):
•Donative intent is a “creature of the mind”. It can not
be perceived except by the manifestation of material
& tangible acts. Thus, donative intent is presumed
present when one gives a part of one’s patrimony to
another w/o consideration (Abello vs Commissioner
of Internal Revenue 452 SCRA 162,170).
•For a donation to exist however, the intent to donate
must be effectively carried out. A mere declaration of
an intention or desire to donate is not a donation, if
not effectively carried out.
 DONATION
(Articles 725- 773)
Donation as a Contract:
•All the essential elements of a contract ( consent,
object & cause/consideration) are present in a
donation. Like any contract, the donation also
requires the concurrence of the reciprocal consent
of the parties and it is not perfected until it is
accepted by the donee (Art 734). Hence,
“donations inter vivos” are governed by the
provisions on obligations & contracts in all that is
not determined by the provisions of the civil code
on donations (Art 732).
 DONATION
(Articles 725- 773)
Donation as a mode of acquiring & transferring
ownership:
• Donation is one of the modes of acquiring
ownership. Hence, it is not simply a title which
requires tradition (delivery) in orde(r that
ownership may be effectively transmitted.
• There is no conflict with the above statement
with the previous statement that donation is a
contract. Not all contracts requires delivery in
order to transfer ownership since the law requires
tradition “in consequence of certain contracts”
only, not in all contracts (See Art 712 par 2).
 DONATION
(Articles 725- 773)
Donation as a mode of acquiring & transferring
ownership:
• Article 712 provides that ownership & rights are
acquired & transmitted –by donation, succession- & in
consequence of certain contracts by tradition. This
implies that donation is not one of the contracts
requiring tradition.
•As a mode of acquiring ownership, donation results
in an effective transfer of title over the property from
the donor to the donee & the donation is perfected
from the moment the donor knows of the acceptance
by the donee. And once the donation is accepted (&
the acceptance is known by the donor), the donee
becomes the absolute owner of the property donated.
 DONATION
(Articles 725- 773)
Classifications of Donation (As to their taking effect)
• Donation Mortis Causa: If the donation is made in
contemplation of the donor’s death, meaning full
ownership of the donated property will pass to the
donee only because of the donor’s date, then it is at
the time of death that the donation takes effect. The
donoation is mortis causa.
•Donation inter vivos: But if the donation takes effect
during the donor’s lifetime or independently of the
donor death, meaning the full ownership of the
donated property passes to the donee during the
donor’s lifetime, not by reason of his death but
because sof the deed of donation, then the donation
is inter vivos.
 DONATION
(Articles 725- 773)
 Classification of Donation Inter Vivos:
1] Pure or simple donation: It is one where the
underlying cause is pure liberality. This is donation in
its truest form.
2] Renumenatory or compensatory donation: It a
donation made for the purpose of rewarding the
donee for past services, which services to no amount
to a demandable debt (Art 726).
3] Conditional or modal donation: The donation is
made in consideration of future services or where the
donor imposes certain conditions, limitations or
charges upon the donee, the value of which is inferior
(lesser) than that of the donation given (Arts 726 &
733).
 DONATION
(Articles 725- 773)
Classification of Donation Inter Vivos:
4] Onerous Donation: a donation which imposes
upon the donee a reciprocal obligation or, to be
more precise, this is the kind of donation made for
a valuable consideration, the cost of which is
equal or more than the thing donated. This is the
most distinct of all the above classification of
donations. Unlike the other donations (above) the
validity of and the right & obligations of the
parties involved in an onerous donation is
completely governed by the law on contracts, not
by the law on donations (Art 733).
 DONATION
(Articles 725- 773
 Classification of Donation Inter Vivos:
•In simple (pure) & renumenatory donations, the rules on
donations (Arts 725-773) shall properly govern and the
Civil Code provisions on obligations & contracts shll apply
in a supletory manner: THUS:
o Simple & renumenatory donations shall follow the
formalities required in Articles 748 & 749;
oIn addition, Article 727 of the NCC expressly provides that
“illegal or impossible conditions in simple & renumenatory
donations shall be considered as not imposed”. This means
that the donation remains valid & the illegal & impossible
conditions are disregarded.
 DONATION
(Articles 725- 773
 Conditional (modal) & Onerous Donations
•Conditional or Modal Donations: It is one where the
donation is made in consideration of future services
or when the donor imposes certain conditions,
limitations or charges upon the donee, the value of
which is inferior/ lesser than that of the donation
given.
oModal donation shall be governed by the law on
contracts up to the extent of the burden & by the
law on donations as regards that portion which
exceeds the value of the burden imposed (Art
733). Note that Art 733 uses the term
“renumenatory donations” the law is actually
referring to modal donations.
 DONATION
(Articles 725- 773
 Conditional (modal) & Onerous Donations
• Onerous Donations: That which imposes upon the donee a
reciprocal obligations or. Otherwise stated this kind of donation
made for a valuable consideration, the cost of which is equal or
more than the thing donated.
o When the dontation is onerous, it is governed completely by
the law on contracts, but by the law on donations.
o As to formalities, onerous donations shall not be governed by
Art 748 & 749 but by the general rules on contracts state in Art
1356 which states that “contracts shall be obligatory in
whatever form it may have been entered.
o If an impossible or illegal conditons is imposed in such kind of
donation, the obligation created shall be annulled pursuant to
Art 1183
 DONATIONS MORTIS CAUSA
 CONCEPT:
• The New Civil Code does not use the term “donation
mortis causa” (Alejandro vs Geraldez 78 SCRA 245, 254)
The term as commonly employed is merely a convenient
name to designate those dispositions of property that are
void when made in the form of donation.
 Characteristics of donations mortis causa:
1]It conveys no title or ownership to the transferee before
death of the transferor. The transferor should retain
ownership & control of the property while alive;
2] Before his death, the transfer should also be revocable
by the transferor at will, but revocability may be provided
for indirectly by means of aq reserved power in the donor
to dispose of the properties conveyed.
3] That the transfer should be void if the transferor should
survive the transferee.
 Mortis Causa Donation Distinguished from Donation Inter
Vivos
Distinction: It is the time of effectivity which distinguishes a
donation inter vivos from a donation mortis causa. The
effectivity is determined by the time when the full or
naked ownership of the donated properties is transmitted
to the donees.
• If the donation is made in contemplation of the donor’s
death, meanind the full or naked ownership of the donated
property will pass to the donee only because of the
donor’s death, it is at that time that the donation takes
effect, & it is a donation mortis causa, & this should be
embodied in a last will & testatment.
•But if the donation takes effect during the donor’s lifetime
or independently of the donor’s death, meaning the
ownership of the donated property passes to the donee
during donot’s lifetime, then the donation is inter vivos.
 Consequences of the Distinction
 The distinction between a transfer inter vivos &
mortis causa is important as the validity or
revocation of the donation depends upon its nature.
•Formal Requirement: If the donation is inter vivos, it
must be executed & accepted with the formalities
prescribed by Articles 748 & 749 of the New Civil
Code, except when it is onerous in which case the
rules on contracts will apply. If it is mortis causa, the
donation must be in the form of a will, with all the
formalities for the validity of wills, otherwise it is
void & can not transfer ownership.
 Consequences of the Distinction
• Revocation:
o An essential characteristic of dispositions mortis
causa is that the conveyance or alienation should be
(expressedly or by necessary implication) revocable
within the lifetime, at the discretion of the grantor or
donor simply because he has changed his mind.
o Donation inter vivos on the other hand, once
accepted become irrovacable. Upon the acceptance
by the donee, the donor can no longer withdraw
unitarily or arbitrarilly, & he may be compelled to
comply to deliver the things he wanted to donate.
 Consequences of the Distinction
• Revocation:
o The donation inter vivos, however, may be made
revocable upon the fulfilment of a resolutory
conditions, or may be revoked only for reasons
provided in Articles 760, 764 &765 of the civil code,
namely: a) subsequent birth of children of the donor;
b) failure by the donee to comply with the conditions
imposed; c) ingratitude by the donee and reduction
of the donation in the event of inofficiousness.
oIf the donor reserves the right to revoke it or he
reserves the right to dispose of all his properties
purportedly donated there is no donation. If the
disposition or conveyance or takes effect upon the
donor’s death & becomes irrevocable only upon his
death , it is not inter vivos but mortis causa.
 Consequences of the Distinction
 How to distinguish one from the other:
•Basic Rule: What is crucial is to determine
whether the donor intended to transfer
ownership over the properties upon the
execution of the deed. If the donor intends to
transfer the ownership of the property donated
upon the execution of the donation, as reflected
from the provisions of the donation, then it is
inter vivos; otherwise, it is merely mortis causa
 Consequences of the Distinction
 When donee’s enjoyment of the property do nated is
postpone until after the donor’s death:
• If the donor intends that the donation shall take
effect during his lifetime, the donation is iner vivos ,
although the property may not be delivered until afte
the donor’s death (Art 729). In this case, the fruits, of
the property shall pertain to the donee, from the
time of the acceptance, unless the donor provides
otherwise.
•Likewise, the fixing of an event or the imposition of
a suspensive condition, which may take place beyond
the natural expectation of the donor does not
destroy the nature of the act as a dontion inter vivos,
unless the a contrary intention appears.
 Consequences of the Distinction
 How to ascertain the intention of the donor:
•In ascertaining the intention of the donor, all the
provisions of the deed must be read (considered)
together. Apart from its language, the real nature of
the deed may likewise be ascertained from the
intention of the parties as shown by the
circumstances attendant upon its execution.
•The designation of the donation as mortis causa,
or a provision in the deed to the effect that the
donation is “to take effect at the death of the
donor” are not the controlling criteria. Such
statements are to be construed together with the
rest of the instrument, in order to give effect to the
real intent of the transferor.
 Perfection of Donation
Article 734)
 Article 734 provides that donation is perfected from the
moment the donor knows of the acceptance by the donee.
 When Perfected:
•Before the acceptance, the donor is not bound and may
withdraw the offer of the donation.Such revocation will
have the effect of preventing perfection of the donation,
although it may not be known to the donee. The power to
revoke is implied with the creterion that no donation exists
untiil the acceptance is known.
•Since the tie or bond springs from the meeting or
concurrence of the minds and since up to this moment
there exists only a unilateral act, it evident that the donor
has the power to revoke it by withdrawing the donation.
 Perfection of Donation
Article 734)
When Perfected:
•The acceptance made by the donee may
lifewise be revoked before it comes to the
knowledge of the donor. Since donation is also a
contract, the ruling of the SC in Jardine Davies
vds CA (333 SCRA 684/693) that “for a contract
to arise, the acceptance must be made known to
the offeror. Accordingly, the acceptance can be
withdrawn or revoked before it is made known to
the offeror”, may also be applied.
 Perfection of Donation
Article 734)
 Acceptance is Indispensable: It is clear from the
provisions of Article 725 that acceptance is necessary
in a donation. Without acceptance, the donation is
not perfected. Tolentino says that the rationale
behind this is that nobody is obliged to receive a
benefit against his will.
 Effects of Perfection:
•Donation, as a mode of acquiring ownership,
results in an effective transfer of title over the
property from the donor to the donee & once
accepted, the donee become the absolute owner of
the property donaied, nothwithstanding the
condition imposed by the donee.
 Perfection of Donation
Article 734)
Effects of Perfection: \
•Once the donation is accepted, the donation is
generally considered irrevocable. Upon
acceptance by the donee, the donor can no
longer withdraw & he can be compelled to
comply & deliver the thing he intended to donate.
•The donation may however be revocable upon
the fulfillment of a resolutory conditions, or may
be revoked only for reasons provided for in
Articles 760, 764 & 765 of the Civil Code & for in
Oficious donations
 Perfection of Donation
Article 734)
Time for making of Acceptance:
• The acceptance must be made during the lifetime of the donor
& the donee.
•The rule stated above must however be interpreted in relation
to the provisions of Articles 734 & 1323 of the code. Article 734
provides that “donation is perfected from the moment the donor
knows of the acceptance by the donee.”
•Upon the death of either the donor or donee prior to the
perfection of the donation, the offer becomes ineffective. This
is clear from Art 1323 which states that “an offer becomes
ineffective upon the death, civil interdiction, insanity, or
insolvency of either party before the acceptance is made.
• An acceptance made by the donee during the lifetime of both
donor or donee will not result in a perfected donation if either
of them died prior to the donor’s gaining knowledge of the
acceptance.
 Persons who may give or receive a donation
(Articles 735 – 749)
Capacity to make Donations:
 Capacity to make donations:
• To be a donor, the law requires that a person must be in possession
of the capacity to contract & the capacity to dispose of his property
(Art 735).
•Art 735 on the capacity to donate must be interpreted in relation with
the provisions of Art 751 which states that “donations cannot
comprehend future property”.
•Future property include all property that belongs to others at the
time of the donation although it may later belong to the donor later.
He cannot donate it because it is not at present his property, & he
cannot dispose of it at the moment of making the donation. In
other words the law requires that the donor be the owner of the
property donated at the time of the donation, otherwise such
donation is viod even if accepted. Nome dat quod non habet.
 Persons who may give or receive a donation
(Articles 735 – 749)
Time of Determining Donor’s Capacity:
• The donor’s capacity shall be determined as of
the time of making the donation (Art 737).
•The phrase “making of the donation” means at
the perfection of the donation.If the donor is
capacitated at the time he makes the donation,
his subsequent incapacity by reason of insanity,
insolvency or interdiction, before acceptance is
conveyed to him will render the offer ineffective,
thus preventing the perfection of the donation.
 Persons who may give or receive a donation
(Articles 735 – 749)
 Legal impossibility of Double donations:
• Article 744 of the NCC expressly makes applicable by
analogy the rules on double sales provided for in Art 1544.
The Art. reads:
Art 744 Donations of the same thing to two or more different donees shall be governed by
the provisions concerning the sale of the same thing to two or more different person.
•Justice Vitug however in his concurring opinion in
Hemedes vs CA (316 SCRA 347) opines that this is not
legally possible, stating that the rule on double sales finds
no relevance in an ordinary donation where the law
requires the donor to have ownership of the thing or the
real right he donates at the time of perfection (Art 750)
since donation, unlike sales, constitute a mode , not just
titled in an acquisition & transmission of ownership.
 Persons who may give or receive a donation
(Articles 735 – 749)
Capacity of the Donee:
 Sufficiency of juridical capacity
• The law does not require that the donee must possess
capacity to act (“the power to do acts w/ legal effect”), it
being sufficient that he must posseses juridical capacity
or “the fitness tobe subject of legal relations” . So long as
the donee posseses juridical capacity & not specially
disqualified by law, he accept donations. Stated
otherwise, all persons, whether natural or juridical who
are not specially disqualified by law may become donees.
• Hence, minors, persons who can not enter into
contracts (Art 741) & even conceived & unborn children
(Art 742) may become donees. The law however requires
that the acceptance of the donation must be made
through their parents or guardians.
 Persons who may give or receive a donation
(Articles 735 – 749)
Effect of unauthorized acceptance:
•Article 745 of the NCC requires that the “donee
must accept the donation personally, or through
an authorized person with a special power for the
purpose, or with general & sufficient power” ,
otherwise the donation will be void.
•Otherwise stated, a donation may not be
accepted by a person who is not authorized to do
so, either by the donee or by law. A donation
which is not accepted in the manner provided for
in Article 745, the unauthorized acceptance will
not result in a perfected donation.
 Persons who may give or receive a donation
(Articles 735 – 749)
Persons Disqualified to become Donees: The following
persons are disqualified to become donees:
1] Those who were guilty of adultery or concubi- nage at
the time of the donation (Art 739 [1] )
• Donations made between persons who were guilty of
adultery or concubinage at the time of the donation
shall be void.
• The guilt of the donor & donee may be proved by
preponderance of evidence in a civil action for the
declaration of nullity of the donation. Hence, no
previous criminal conviction of guilt is necessary.
• Art 739 NCC does not apply to a case where the
alleged concubine did not know that the man was
married. The same principle will likewise apply to the
man accused of committing the crime of adultery.
 Persons who may give or receive a donation
(Articles 735 – 749)
Persons Disqualified to become Donees:
2]Those who were found guilty of the same criminal offense, if
the donation is made a consideration thereof (Art 739 [2]).
• Par 2 of Art 739 contemplates of a principal by inducement
& a principal by direct participation. It the donation is made
between these two persons in consideration of the
commission of the crime, such donation is void.
3] Public officers or their spouses, descendants & ascendants,
if the donation is made by reason of their office (Art 379 [4]).
•When the donation is made to a public officer or his spouse
etc. The donation is void.
•While par 3 Article 739 refers to the “wife”, this should be
construed as referring to the “spouse” so as to include the
husband.
 Persons who may give or receive a donation
(Articles 735 – 749)
Persons Disqualified to become Donees:
4] Those who are incapacitated to succeed by will
(Article 1027 [1],[2],[3],[5]&[6] in relation to Article
740).
•Articles 1027 & 1032 enumerated those persons
who are incapacitated to succeed by will. The
disqualifications, however, contemplated in Art 740
extends only to persons who are incapable of
succeeding by virtue of Article 1027 & do not extend
to those enumerated under Art 1032.
• Par 4 of Art 1027 which speaks of “attesting
witnesses” is not applicable to donations because
there are no attesting witnesses required in a
donation “inter vivos”.
 Persons who may give or receive a donation
(Articles 735 – 749)
Persons Disqualified to become Donees:
 Person disqualified to become donees pursuant to Art 740 in
relation to Article 1027:
a] The priest who heard the confession of the donor, or the
minister of the gospel who extended spiritual aid to him,
during the last illness;
b] The relatives of such priest or minister w/in the fourth
degree, the church, order, chapter, community or institution to
which the priest or pastor belong;
c] Any physician, surgeon, nurse, health officer or druggist who
took care of the donor during his last illness;
d] A guardian with respect to donations made by the ward in
his favor before the final accounts of the guardianship have
been approved;
e] Individuals, associations & corporations not permitted by
law to receive donations.
 Persons who may give or receive a donation
(Articles 735 – 749)

Persons Disqualified to become Donees:

5] The spouses, if the donation is between them &
made during the marriage, whether the donations
be made directly or indirectly, except moderate
ones (gifts) given on the occasion of any family
gathering (Art 87 Family Code);
6] Those who are living together as husband &
wife w/o a valid marriage, if the donation is
between them & made during their cohabitation,
whether the donation is made directly or indirectly
(Art 87, Family Code)
 Formalities in Donation
[Articles 748 & 749]
Applicability of Article 748 & 749 NCC:
•The formalities of donation prescribed in Articles
748 & 749 are applicable only to donations inter
vivos and not to donations mortis causa, the latter
being governed by the formalities for the validity of
wills. With respect to donation inter vivos, the
formalities required in Articles 748 & 749 apply only
to simple & renumenatory donations. The articles
does not apply to onerous donations because the
latter are governed by the rules on contracts.
•Following the provisions of Article 83 of the Family
Code, the formalities of donations propter nuptias
are likewise governed by Article 748 & 749 of the
NCC.
 Formalities in Donation
[Articles 748 & 749]
Formalities in Donations of Personal Property:
 If the value does not exceed P5,00.00:
• The donation may be made orally, subject however to the
requirement that there must be simultaneous delivery of the
thing or of the document representing the right donated (Art 748
par 2). If there is no simultaneous delivery the donation is void.
• There is nothing in the law, however, which prevents the
donation from being reduced in writing. If the donation is in
writing, there is no requirement of simultaneous delivery & the
law does not require that the acceptance must also be in writing.
As such, if the value of the personal property to be donated does
not exceed P5,000.00 & the donation is made in writing, the
acceptance may be made either orally or in writting, expressly or
tacitly, & without need of simultaneous delivery.
 Formalities in Donation
[Articles 748 & 749]
 If the value exceeds P5,000.00:
•The law mandates that both the donation and the
acceptance must be in writing, otherwise the
donation shall be void (Art 748 par 3 NCC).
•The requirement that the donation & the
acceptance be in written form is complied with if
both the donation & acceptance are embodies either
in a private or public instrument.
•In the case of Moreno-Lentfer vs. Wolf (441 SCRA
584) where the alleged subject of donation was the
purchase money in a contract of sale in the amount
of P 3,297,800.00 the SC held that the donation must
comply with the mandatory requirements of Article
748.
 Formalities in Donation
[Articles 748 & 749]
Formalities Required in Donations of Real Property:
1]Both the donation & the acceptance must be embodied
in a public instrument, although not necessarily embodied
in a single document (Art 749 par 1 &2 NCC).
2] The real property donated & the value of the charges
which the donee is required to satisfy must be specified in
the deed of donation (Art 749 par 2).
3]If the acceptance is embodied in a separate document, the
donor shall be notified thereof in an authentic form & such
step shall be noted in both instruments of donation &
acceptance(Art 749 par 3).
All the above requirements must be complied with,
otherwise, the donation shall be void (Art 749).
 Formalities in Donation
[Articles 748 & 749]
Requirement of Notification & Notation:
 If the acceptance does not appear in the very same
instrument of donation, it is necessary that formal notice
thereof be given to the donor, & the fact that due notice
has been given must be noted in both instruments (the
document of donation & that of acceptance)
Where the deed of donation fails to show the acceptance,
or where the formal notice of acceptance, made in a
separate instrument, is either not given to the donor or else
noted in the deed of donation & in the separate
acceptance, the donation is null & void. It is well settled
that if the notification & notation are not complied with,
the donation is void (Republic vs Guzman 326 SCRA 90).
 Formalities in Donation
[Articles 748 & 749]
Requirement of Notification & Notation:
 However, a strict & literal adherence to the
requirement of “notification” in Art 749 should be
avoided if such will result only in injustice but a
distortions of their intentions (Pajarillo vs IAC 176
SCRA 340; Republic vs. Salim 356 SCRA 1).
 In Pajarillo the donor was not unaware of the
acceptance for she confirmed it later & requested
that the donated land be not registered during her
lifetime. The SC said that it can not declare the
donation ineffective for it would putting too much
stress in form rather than in substance
 Formalities in Donation
[Articles 748 & 749]
 In Republic vs. Salim (356 SCRA 1) where the acceptance
was not noted in the Deed of Donation, the SC held that
actual knowledge by the donor of the construction &
existence of the school building pursuant to the condition
of the donation already fulfils the legal requirement that
the acceptance of the donation by the donee be
communicated to the donor. The SC explained that the
purpose of the formal requirement for acceptance of a
donation is to ensure that such acceptance is duly
communicated to the donor.
 The Pajarillo & Salim cases must be distinquished from the
cases of Legasto vs Verzosa (54 Phil766) & Santos vs.
Robledo (28 Phil 245) because in the former there was not
evidence that the claimed donation had been accepted, &
in the latter the acceptance did not appear in the deed of
donation or in any other instrument.
 Formalities in Donation
[Articles 748 & 749]
Registration of Donation:
 It is enough, between the parties to a donation
of an immovable property, that the donation be
made in a public instrument. But in order to bind
third persons, the donation must be registered in
the Registry of Property.
Such registration in the Office of the Register of
Deeds is not necessary to the validity of the
donation.
 Effects of Donations
(Articles 750-759)
Extent of Donation:
 In General: A donor may donate all his property or
part thereof (Art 750 NCC) subject only to the
following limitations:
1] He cannot donate future property (Art 751);
2] He must reserve, in full ownership or in
usufruct, sufficient means for the support of himself,
& of all relatives who, at the time of the acceptance
of the donation, are by law entitled to be supported
by him (Art 751);
3] He cannot give by donation more than what he
can give by will (Art 752)
 Effects & Limitations of Donations
(Articles 750-759)
Extent of Donation:
Donation of Future Property: The RULE is, donations
cannot comprehend future property (Art 751 par 1).
Donation is a mode of acquiring (& transferring)
ownership hence results in an effective transfer of
title over the property from donor to donee, once
the donation is perfected. For this reason the law
requires that the donor must be the owner of the
thing donated at the time of the donation. If the
donor is not the owner of what he is donating he will
therefore have nothing to convey, following the rule
that “no one can give what he does not have”
 Effects & Limitations of Donations
(Articles 750-759)
•Meaning of “future property”: future property includes all
property that belongs to others at the time the donation is
made, though it may belong to the donor later.
•The phrase “at the time of the donation” must be construed
to mean “at the perfection of the donation”. Hence, it is
possible that, at the time of the execution (or drafting) of the
donation, or even at the time of the acceptance, the donor
may not be the owner (of the property donated) , as long as at
the time the acceptance comes to the knowledge of the
donor- which is the perfection of the donation- the donor must
be owner of the property donated.
• Take note however, that the Family Code allows a donation of
future property between the future spouses (in donation
propter nuptias) but the donation shall partake of a
testamentary provision, which is governed by the provisions on
testamentary succession & the formalities of wills (Art 84
Family code)
 Effects & Limitations of Donations
(Articles 750-759)
 Donor must reserve something for Support:
•One of basic limitations to the donor’s right to donate is
that he must reserve, either in full ownership or in
usufruct, sufficient means for the support of himself &
all relatives who, at the time of the acceptance, are
entitled by law to be supported by the donor (Art 750).
•If the donor fails to make such reservation, the donation
is not void but subject to reduction as the instance of
“any person affected” to the extent necessary for the
support of the donor & his relatives entitled to support.
•Art 750 must be corelated with Articles 195 & 196 of
the Family Code which enumerates the persons who are
obliged to support each other.
 Effects & Limitations of Donations
(Articles 750-759)
 Donations Must not be Inofficious:
• Another limitation to the donor’s prerogative to made a
donation is that he cannt give a donations more than he
can give by will (Art 752). If what he donates exceeds what
he can give by will is deemed “inofficious” & the donation
will be reduced to the extent of such excess.
•There is a portion of the inheritance which he cannot
dispose of freely either by testamentary provisions of a will
or by donation (inter vivos). The law has reserved it in favor
of the compulsory heirs (Art 886). This portion is called
legitime.
• Inofficious donations are not void although they be
reduced or revoked, if there is impairment of the
legitime.Note however, that whether or not the legitime is
impaired can only be determined only upon the death of
the donor.
 Effects & Limitations of Donations
(Articles 750-759)
Effect of Donations:
 Donation made to several donees jointly: When the donation is
made to se3veral persons jointly, the following rules shall apply:
•The donees are entitled to equal portions, unless the donor has
otherwise provided (Art 753);
•Theres is no right of accretion among them, unless it is
expressly provided for by the donor. However if the donation is
made to husband & wife jointly, the rule is there is a right of
accretion among them unlessthe donor provides to the contrary
(Art 753).
• When there is a right of accretion among several donees, the
share of one who did not accept; could not accept or who died
before he had accepted shall go to the other donees in
proportion to the interest of each donee. In such a situation the
acceptance by one of the donees shall result in the perfection of
the dontion.
 Effects & Limitations of Donations
(Articles 750-759)
No Warranty against Eviction & Hidden Defects:
Rule on Warranty: The donor is not obliged to
warrant the things donated (Art 754 par 1). Hence,
as a rule, the donor has not liability to the donee in
case of eviction & hidden defects
Exceptions: The donor shall be liable (for eviction &
hidden defects) in the following cases:
a] When there is bad faith on the part of the
donor, he is liable for eviction or hidden defects (Art
754 par 2)
b] When the donation is onerous , in which case
the donor shall be liable up to the amount equal to
the burden. (Art 754 Pe 1)
 Effects & Limitations of Donations
(Articles 750-759)
 Reservation of Power to Dispose:
• If the donor (in his donation) reserves thes power to dispose
or alienate the property donated & such right is unqualified or
unrestricted (meaning the donor can alienate the conveyed
property in favor of other persons of his choice at anytime that
he should wish to do, the donation is mortis causa .
•If there are several properties donated and the donor reserved
for himself the power to dispose “some of the things donated,
or some amount”, such reservation is valid & will not affect the
character of the conveyance as a donation inter vivos.
• On the other hand, if there are several properties & the donor
reserved the power to dispose all of them, which is neither
qualified or restricted , meaning he can alienate all the
conveyed properties in favor of other persons of his choice
anytime that he should wish to do, the donation is mortis causa
& therefore subject to the rules governing the formalities of
wills.
 Effects & Limitations of Donations
(Articles 750-759)
Separate Donation of Ownership & Usufruct:
•The donor may donate separately the ownership of the property to
one person and the usufruct to another or others subject only to the
condition that all the donees must be living at the time of the
donation (Art 756).
Donor may provide for Reversion:
•The donor may validly provide for the reversion or return of the
property donated to him for any cause or circumstances (Art 757).
•He may likewise establish a reversion in favor of a third person
provided that such person is living at the time of the donation. If the
latter condition is violated, only the provision for reversion is
considered void without affecting the validity of the donation
•Reversion is a stipulation that the property shall return to the
donor. It may be stipulated in favor of the donor for any cause of
circumstances (Art 757)
 Effects & Limitations of Donations
(Articles 750-759)
Payment of Donor’s Debts:
 When the donation imposes upon the donee the obligation to
pay the debts of the donor, the following rules shall apply, unless
a contrary intention clearly appears:
1]The donee is understood to be liable to pay only the debts
which appear to have been previously contracted (or previous to
the donation); &
2] The liability of the donee is limited only to the value of the
property donated (Art 758)
 In the absence of any stipulation regarding the payment of debts
of the donor, the donee shall be responsible therefor only when
the donations has been made in fraud of creditors (Art 759). The
liability should be limited only to the value of the property
donated.
 A donation is presumed to be in fraud of creditors when at the
time of the donation, the donor did not reserve sufficient
property to pay his debts prior to the donation.
 Revocation & Reduction of Donations
(Articles 760-773)
Donation (inter vivos) is Generally Irrevocable:
 Donation results in an effective transfer of title over the property from
donor to the donee. Once accepted, the donee becomes the absolute
owner of the property donated (Tanpinco vs IAC 207 SCRA 652)
Hence, as a rule, once the donation is accepted, it is generally
considered irrevocable.
 Exceptions:
a] Subsequent appearance of children (Art 760);
b] Non fulfillment of charges imposed in the donation (Art 764);
c] Ingratitude of the donee;
d] Inofficious donations (art 760)
 The donation may likewise be reduced based on the following:
a] The donor did not reserve sufficient property for his family's
support;
b] Subsequent appearance of children
c] The donation is inofficious.
 Revocation & Reduction of Donations
(Articles 760-773)
Rule on Subsequent appearance of children:
 Every donation inter vivos, made by a person having no children or
descendants (legitimate, illegitimate or legitimated by subsequent
marriage)may be revoked or reduced, by the happening of any of these
events:
1] If the donor, after the donation, should have legitimate, illegitimate
or legitimated children, even though they may 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;
3]If the donor subsequently adopts a minor child (Art 760)
 The happening of the events above mentioned shall only give rise to a
ground to revoke the donation. Meaning an action for revication must be
filed, otherwise if not instituted or if instituted after the prescriptive
period , the donation shall be considered valid.
 Note that the donor did not or believed did not have any children or
descendants. Etc.
 Revocation & Reduction of Donations
(Articles 760-773)

 Adoption of Minor Child:

•To be a ground for revocation of the donation
under Article 760, the person adopted must be a
minor
•If the “adopted child” is a person of legal age, the
donation may not be revoked or reduced pursuant
to Article 760, although it may be either be subject
to reduction or revocation pursuant to the
provisions of Article 752, on inofficous donation.
 Revocation & Reduction of Donations
(Articles 760-773)

 Effect of Subsequent Appearance of Children:

•Upon the happening of any of the above mentioned
events (enumerated in Art 760), the donor shall be entitled
to demand either for the reduction or revocation of the
donation (Art 761).
•Revocation affects the entire donation, while reduction
affects only a part or portion thereof.
•When the ground invoked is the subsequent appearance
of children under Art 760, the donation shall be revoked or
reduced in so far as exceeds the portion that may be freely
disposed by will (the free portion) [Art 761]. Otherwise
stated, there shall be a corresponding reduction or
revocation of the donation in so far as it impairs the
legitime of the child who subsequently appeared after the
making of the donation.
 Revocation & Reduction of Donations
(Articles 760-773)
 Effect of Subsequent Appearance of Children:
•In the determination of the child’s legitime, it is the
whole estate of the donor at the time of the
appearance of the child (subsequent appearance, re-
appearance or adoption) that shall be taken into
consideration. In other words, there shall be a
provisional liquidation of the estate of the donor at
the time of the birth, appearance or adoption of the
minor child for the purpose of determining the
donor’s estate & the child’s legitime. If there is no
impairment of the child’s legitime at that time- or
when the donation does not exceed the fre portion-
then the donation shall not be reduced.
 Revocation & Reduction of Donations
(Articles 760-773)
• Effect of Subsequent Appearance of Children:
•In Article 760 the “inofficiousness” of the donation
is to be determined during the lifetime of the donor
(the time of birth, appearance or adoption) In Article
752 in relation to Art 771 the “inofficiousness of t he
donation is determined only at the time of death of
the donor.
•If at the time of the subsequent appearance of a
child under Art 760 the entire donation is found to be
within the free portion of the donor’s estate the
donation is neither reduced or revoked. But if later
on the donor died after suffering financial reverses,
such donation may still be revoked for inofficiousness
under Art 752.
 Revocation & Reduction of Donations
(Articles 760-773)
 Effect of Subsequent Appearance of Children:
• However, if the donation was either reduced or
revoked because it was found to be inoficious at the
time of the subsequent appearance of a child under
Art 760, but later on the donor become richer at the
time of his death, the previous donation could have
been accommodated or covered by the free portion,
the donee is no longer entitled to the return of the
thing donated or its value. In other words what was
reduced before can no longer be returned or
refunded the value of the thing. In this case the
ground for the revocation of the donation is Art 760,
which is alttogether different ground from that
provided in Art 752
 Revocation & Reduction of Donations
(Articles 760-773)
 Effect of Revocation or Reduction by reason of
Subsequent appearance of children: The following
are the effects in case of revocation or reduction of
donation based on Article 760:
1] The property affected shall be returned, or it
cannot be returned anymore, at least its value (Art
762 par 1);
2] If the property is mortgaged, the donor may
redeem the mortaged, by paying the amount
guaranteed, with a right to recover his payment from
the donee (Art Art 762 par 2);
3] The donee shall return the fruits of property
affected only from the filing of the complaint (Arty
768 par 1)
 Revocation & Reduction of Donations
(Articles 760-773)
Prescriptive Period of Action under Article 760:
The prescriptive period for an action for revocation or
reduction under Art 760 is FOUR (4) YEARS, REACKONED
(counted)
• from birth of the first child; or
•from his legitimation; or
•from his recognition or adoption; or
•from judicial declaration of filiations, or
•From the time information was receivede de regarding
the existence of the child believed to be dead.
The action for revocation or reduction is not subject to
waiver or renunciation & is transmitted, upon the death of
the donor, to his legitimate or illegatimate descendants.
 Revocation & Reduction of Donations
(Articles 760-773)
Revocation for failure to comply with conditions:
•When the donee fails to comply with any of the conditions
which the donor imposed upon the donee, the donation
may be revoked at the instance of the donor (Art 764).
•Article 764 uses the term “conditions” but what are
actually being referred to in this article are the obligations
or charges on the donee. The article does not refer to
uncertain events on which the birth or extinguishment of
a juridical relation depends, but is used to mean the
obligations & charges imposed on the donee by the donor,
which would characterized the donation as onerous. Thus,
Tolentino opines that the manner or revocation in Art 764
is applicable to onerous donotions.
 Revocation & Reduction of Donations
(Articles 760-773)
Revocation for failure to comply with conditions:
• In the case of De Luna vs Abiriga (181 SCRA 150, 156) the
Supreme Court rule to the effect that Article 764 NCC
does not apply to onerous donations in view of the
specific provisions of Article 733 that onerous donations
are governed by the rules on contracts. The court further
held that in determining the prescriptive period of an
action to revoke onerous donations, the general rules on
prescription & not in donations are applicable to onerous
donations. The SC in Abrigo apploied thereofre Art 1144
(1) of the NCC as prescriptive period (which is 10 years,
w/in which the donee must comply with
conditions/obligations) in an action for revocation of an
onerous donation.
 Revocation & Reduction of Donations
(Articles 760-773)
Revocation by reason of Ingratitude:
RULE: The donation may also be revoked at the instance of
the donor, by reason of ingratitude of the donee (Art 765).
Instances of Ingratitude:
1] If the donee should commit some offense against the
person, honor or the property of the donor, his wife or
children under his parental authority;
2] If the donee imputes to the donor any criminal offense,
or any act involving moral torpitude, even though he
should prove it, unless the crime or act has been
committed against the donee himself, his wife or children
under his parental authority;
3]If the donee unduly refuses to give support to the donor
when the former is legally or morally bound to give
support to the latter (Art 769).
 Revocation & Reduction of Donations
(Articles 760-773)
Prescriptive Period of Action:
The prescriptive period for filing the action for
revocation on the ground of ingratitude is ONE (1)
YEAR , counted from the time the donor had
knowledge of the fact that it was possible for him to
bring the action. This right to revoke on the ground
of ingratitude can not be renounced in advance, It
cannot also be transmitted to the heirs of the donor,
if the latter did not institute the same, although he
could have done so.. Neither can this action be
brought against the heirs of the donee, unless upon
the latter’s death the complaint has been filed.
(Articles 769 & 670).
 Revocation & Reduction of Donations
(Articles 760-773)
Effects of revocation under Article 765:
1] When the donation is revoked by any of the causes due
to ingratitude the donee shall not return the fruits except
from the filing of the complaint (Art 786).
2]The alienation & mortgages effected before the notation
of the compliant for revocation in the Registry of Property
shall subsist. The donor may however demand from the
donee the value of the property alienated which he can not
recover from third persons, or the sum for which the same
has been been mortgaged (Art 767 par 1). The value of said
property shall be fixed as of the time of the donation (Art
767 par 2)
3] Alienations & mortgages effected after the notation of
the comolaint in the Registry of Property shall be void (Art
766 par 3).
 Revocation & Reduction of Donations
(Articles 760-773)
Revocation by reason of Inofficiousness:
CONCEPT: A donation is inofficious it it exceeds
what the donor may give by will. An inofficious
donations, therefore, is that which prejudices the
legitime of the compulsory heirs. Stated
otherwise, donations which exceed the
disposable free portion of the donor’s estate are
inofficious because they impair the legitime of
the compulsory heirs. Inofficious donations are
either subject to revocation or reduction with
regard to the excess (Art 771).
How to determine Inofficiousness:
 Revocation & Reduction of Donations
(Articles 760-773)
How to determine inofficious donations:
1] Determine the value of the properties of the which
remains at the time of the testator’ death. To do this
collate or add up all the properties at the time of his
death;
2] Determine the obligations, debts, charges which have to
be paid out or deducted from the value of the property
left;
3] The balance between the assets and the liabilities is the
hereditary estate;
4] Add to the net value thus found, of the value, at the
time they were made, of donations subject to collation;
5] Determine the amount of the legitimes by getting from
the total thus found the portion that the law provides as
the legitime of each respective heir
 Revocation & Reduction of Donations
(Articles 760-773)
How to determine Inofficious donations:
6] Deduct the legitime from the net value of the
hereditary estate so that you get the free
disposable portion by which the donation must
be measured. If the value of the donation at the
time it was made exceed the free portion, then
the excess must be reduced by the amount of the
excess. But if the donation does not impair the
legitime, then it must be allowed to stand.
 Revocation & Reduction of Donations
(Articles 760-773)
Status of Donation During the Lifetime of Donor:
 While the donation may be found to be inofficious
at the time of the donor’s death, it takes effect
nonetheless during the donor’s lifetime.
The mere fact that the dontions turns out to be
inofficious at the time of the donor’s death does not
result in automatic revocation of the donation. The
provision of Art 752 in relation to Article 771, is not
seklf executory. Oltherwise stated, if no action for
recovation is filed, or it is filed afte the lapse of the
prescriptive period, the donation is foreever
considered valid
 Revocation & Reduction of Donations
(Articles 760-773)

Who may revoke:

Only those who at the time of the donor’s death
have a right to the legitime & their heirs &
successors in interest may ask for the reduction
of inofficious donations (Art 772 par 1). In other
words persons who are not entitled to the
legitime (not considered compulsory heirs), such
as donees, devisees, legatees & creditors of the
donor, cannot ask for the reduction of inofficious
donations.
 Revocation & Reduction of Donations
(Articles 760-773)
Prescriptive Period:
The Civil Code provisions on donation has no
particular on the prescriptive period provision for
the reduction of inofficious donations due to the
impairment of the legitime. The Supreme Court
however, in the case of Imperial vs Court of Appeals
(316 SCRA 393) held that an action for reduction of
an inofficious donation prescribe in 10 years
following Article 1144 (2)of the Civil Code (upon
obligation created by law). The 10 years is counted
from the death of the donor-decedent, since the
cause of action to enforce a legitime accrues only
upon the donor’s death.