DONATION

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.

Acceptance must also be in a public document.

Registration not necessary; only when rights of third persons are
affected

Art. 726. Classifications of Donation

1. Donation is really a contract
2. By itself a mode of acquiring ownership
3. Does not ordinarily require delivery before ownership can be
transferred
4. Results in an effective transfer of title over the property from the
moment the donor is made aware of the acceptance by the
donee, provided that donee is not disqualified or prohibited by
law from accepting the donation
Once accepted, generally irrevocable and the donee becomes owner
of the property EXCEPT:
1. On account of officiousness
2. Failure of donee to comply with charge imposed on the
donation
3. Ingratitude
Essential Characteristics of Donation
1. Consent, subject matter, cause
2. Necessary form
3. Consent or acceptance by donee during donors lifetime
4. Irrevocability (except for legal cause)
5. Intent to benefit the donee (animus donandi)
6. Resultant decrease in the assets or patrimony of donor
Requisites of Donation
1. Donor must have capacity to make the donation of a thing or
right
2. Donative intent (animus donandi)
3. Delivery; actual or constructive
4. Donee must accept or consent to the donation
A person may be a donee although he is incapacitated to enter into a
contract if he is not specially disqualified by law to accept donations
Donation of an immovable propertymust be made in a public
document

As to taking effect:
a. Inter vivos- during lifetime of donor
b. Mortis causa- upon death of donor
c. Propter nuptias- by reason of marriage and before its
celebration
As to consideration/motive/purpose or cause:
a. Pure or simple- pure liberality in consideration of donees merits
b. Remuneratory or compensatory- given out of gratitude to
reward past services
c. Modal- imposes upon the donee a burden less than the value of
the gift
d. Onerous- made for valuable consideration; equal or more than
the value of the gift
As to effectivity or extinguishment
a. Pure
b. Conditional
c. With a term
Remuneratory donations:
Motivating cause is gratitude
Illegal or impossible conditions considered as not imposed
Donation for future services cannot be remuneratory
Past services should not constitute a demandable debt
Modal donations:
A burden which is necessarily future, less than the value of the
gift, is imposed upon the donee
Dual nature:
o the portion exceeding the value of the burden imposed
constitutes real donation (rules on donation in general)
o the portion equivalent to the burden is governed by rules
on oblicon

Art. 727. Illegal or impossible conditions

- in simple or remuneratory donation would be deemed not
imposed
- donation will be considered as simple
- If donation is onerous, the illegal or impossible condition shall
render it void
- Art 1183 applies

Art 729- donations in praesenti, which takes effect during the

lifetime of the donor but the property shall be delivered after the
donors death
Fruits shall belong to the donee from the time of acceptance
unless otherwise provided by the donor

Important to distinguish: because validity or revocation of the donation

depends upon its nature

Art. 728-729. Inter vivos vs mortis causa

Inter vivos
Takes effect during the lifetime
of the donor, independently of
his death, even if the actual
execution may be deferred until
said death
Made out of the donors pure
generosity
Valid if the donor survives the
donee
Must follow formalities of
donations
Accepted by the donee during
his lifetime
Cannot be revoked except for
grounds provided by law (See
760, 765)
Right to dispose of the property
is completely conveyed to the
donee
Subject to donors tax

Mortis causa
Takes effect upon the death of
the donor testator, so that
nothing is conveyed to or
acquired by the donee until said
death
Made in contemplation of his
death without the intention to
lose the thing or its free disposal
in case of survival
Void should the donor survive
the donee
Must follow formalities for the
validity of a will, otherwise void
Accepted only after the donors
death
Always revocable at any time
and for any reason before the
donors death (revocable ad
nutum at the discretion of the
grantor)
Right is retained by the donor
while he is still alive
Subject to estate tax

In case of doubt, conveyance deemed inter vivos to avoid

uncertainty as to the ownership of the property subject of the
deed.

Clauses found in DOD:

- Habendum or warranty clause (wherein grantor transfers
ownership)
- Redendum or reservation clause (grantor reserves something
new to himself)
- Acceptance clause (marks that donation is inter vivos)
Factors in determining whether donation is mortis causa
- Conveys no title or ownership to transferee before death
- Before his death, transfer should be revocable by transferor at
his will, ad nutum
- Transfer should be void if transferor should survive transferee
Art. 730- Donation inter vivos subject to suspensive condition
- If the condition happens after the donors death, still inter vivos
- EXCEPT when donor really intended the donation to take effect
after his death
- Retroactive effect
Art. 731- Resolutory condition
- Ownership of gift is immediately transferred to the donee upon
acceptance is made known to donor
Art. 732-733- Rules governing onerous donations or onerous portions of
donations
- Onerous donations:
o For valuable consideration
o Governed by rules on contracts
o Services are to be performed in the future
o Includes purely onerous, modal and mixed

Art. 734-Perfection of Donation

- Acceptance by donee and such was made known to the
donor
- No acceptance; null and void
- Acceptance must be during the lifetime of donor and donee
- Perfection takes place from the time it is made known to the
donor
- If in the same instrument, knowledge of acceptance is
presumed
- If in separate instrument, there must be proof that a formal
notice of acceptance was received by the donor
Revocation:
- If donor revokes before learning of the acceptance by donee,
no donation
- Once perfected, irrevocable without consent of donee EXCEPT:
o Inofficiousness
o Failure of donee to comply with charges imposed
o Ingratitude
CHAPTER 2
PERSONS WHO MAY GIVE OR RECEIVE A DONATION
Art. 735- All persons who may contract and dispose of their property
may make donation
- Donor must both have capacity to contract and dispose of his
property
- Those who cannot give consent cannot be donors
- Neither spouse may donate any community property or
conjugal partnership property without the consent of the other
EXCEPT:
o Moderate donations given for charity or on occasion of
family rejoicing or distress
o Donations or promises to common legitimate children for
commencing or completing a professional or vocational
course
*Corporations can make donations but not to aid any political party or
candidate

Art. 736- Donation by a guardian or trustee of wards property

- Generally, not allowed
- EXCEPT: if donation is gratuitous and is beneficial to the
beneficiary
- If with the consent of ward and with judicial permission, valid
Art. 737- Capacity of Donor at the time of making donation
- Capacity must exist at the time of making the donation and not
from the time of knowledge of the acceptance
- Making of donation= perfection of donation
Art. 738- Capacity of Donee
- Generally, all persons (natural or artificial) may be donees
- As long as he is not specifically disqualified by law, he may
accept donations (husbands and wives with respect to
immoderate donations)
- Incapacitated persons; minors
- Conceived and unborn children
- Attorney-in-fact of donor may be donee
Art. 739- Void Donations
1. Between persons guilty of adultery or concubinage at the time
of donation (preponderance)
a. Donation given in contemplation of the termination of
the relationship, valid
b. Need not be proved ang adultery or concubinage
2. Between persons guilty of same criminal offense, in
consideration thereof (beyond reasonable doubt)
a. Donation here is remuneratory or onerous
b. Void if it is in consideration thereof
c. Still void even crime was not carried out ; unlawful cause
3. Those made to a public officer or his wife, descendants and
ascendants, by reason of his office (prevent bribery)

Art. 740- Incapacity to Succeed by Will

Who are incapable of becoming donees?
1. Persons guilty of concubinage or adultery at the time of
donation
2. Persons found guilty of same criminal offense, in consideration
thereof
3. Public officers by reason of their office
4. Those mentioned in Art 1027
a. Priest who heard a confession of donor during his last
illness or the minister of gospel who extended spiritual aid
b. Relatives of such priest or minister within 4th degree, the
church, order, chapel, community, organization or
institution to which such priest/minister may belong
c. Guardian with respect to donations given by ward in his
favor before final account be approved BUT if the
guardian is the wards descendant, brother, sister or
spouse, VALID
d. Any physician, surgeon, nurse, health officer or druggist
who took care of the donor during his last illness
e. Individuals, associations and corporations not permitted
by law to inherit
5. Those mentioned in Art. 1032 (unworthy people)
Art. 741- Donations to Minors and others without capacity to contract
- Acceptance must be by parents or legal representative
- May accept by themselves if simple donations
- Mother or father must be appointed as legal guardian to validly
accept onerous donation
Art. 742- Donations to conceived and unborn children
- May be accepted by persons who would legally represent them
if they were already born
- Child shall be born alive
- If less than 7 months, must survive within 24 hours
Art. 743- Donations to incapacitated persons
Incapacitated: disqualified by law (739 and 740)
- Void even if simulated under the guise of another contract
Art. 744- Donation of same thing to different donees
- Rules of double sales apply
o First possession in GF if movable

o
o
o

Immovable, acquired in GF, first recorded in RP

First possessor in GF
Present oldest title

Art. 745- Who must accept donation?

- The donee personally,
- An authorized person or agent with SPA or with general and
sufficient power

Must be in public instrument

Art. 746- When should acceptance be made?

Inter vivos:
- During his lifetime and that of the donor
-

Mortis causa:
Accepted only after the donors death; partake of a will;
governed by the rules on succession
If made during lifetime, no effect

Art. 747- Acceptance by a representative

- Thru parents, legal representative or authorized agent
- Property is immovable
- Acceptance is not made in the same DOD but in a separate
public instrument

Notification and notation are essential for the perfection of

donation

Art. 748- Formalities for donations for movables

- In oral or in writing
- If exceeds P5K, in writing and acceptance also in writing
- If not exceed P5K, may be orally or in writing
o If orally, must be simultaneous with delivery; acceptance
oral or in writing
o If in writing, even without simultaneous delivery;
acceptance oral or in writing

Art. 749- Formalities for donations for immovables

Rules:
When donation and acceptance are in the SAME instrument:
- Must be in public instrument specifying the property donated
and the value of charges which donee must satisfy
When donation and acceptance are in SEPARATE instruments:
- Donation must be in public instrument
- Instrument must specify the property donated and the charges
- Acceptance must also be in public instrument
- It must be dine during lifetime of donor
- Donor must be notified in authentic form of the acceptance of
donation
*registration not required; only to bind third parties
*If in private instrument, void
CHAPTER 3
EFFECT OF DONATIONS AND LIMITATIONS THEREON
Art. 750- Donation may comprehend all present property of donor
- He should reserve sufficient means for the support of himself and
of all relatives
- Present property means property which the donor can rightfully
dispose of at the time of the donation
- Donation without the required reservation is subject to reduction
by the court on petition of the party prejudiced (not null and
void)
- Applies to simple, remunerative and modal NOT TO:
o ONEROUS
o DONATIONS MORTIS CAUSA
o DONATIONS PROPTER NUPTIAS
- Reservation must also include payment to creditors
Art. 751- Donations cannot comprehend future property
- Future property- cannot be disposed at the time of donation
- Null and void
- Except: contractual succession (would-be spouses are allowed
to donate mortis causa to each other future property to the
extent permitted under the rules of testamentary succession

Art. 752- Limitation to what the donor may give

Limitation on the right of the donor to give rather than the right of the
donee to receive
- Cannot donate more than he can give by will
- Cannot receive more than what the giver may give by virtue of
will
Limitation applies only to persons who have compulsory heirs at the
time of the formers death.
Action to revoke must be brought by the donors compulsory heirs
within 5 years after the donors death.
Art. 753- Donation to several donees jointly
- Understood to be in equal shares
- No right of accretion, unless donor provided
- If donees are H and W, there shall be right of accretion, unless
otherwise provided
Art. 754- Subrogation of Donee
- The donee is subrogated to all the rights and actions which in
case of eviction would pertain to the donor
- If donation is simple or remunerative, donor is not liable for
eviction or hidden defects (donation is gratuitous) except:
o Donor is in BF
o Warranty is expressly stipulated
- If donation is onerous, donor liable on his warranty but only to
the extent of the burden
Art. 755- Right to dispose of some of the things donated
- Donor may reserve right to dispose
Art. 756- Donation of Naked Ownership and Usufruct
- Applies if usufructs made are simultaneous or successive
- May donate the naked ownership and usufruct separately
- Donees must be living at the time of donation
Art. 757- Reversion
- If in favor of 3rd persons, must be living at the time of donation

Art. 758-759 Liability of donee to pay debts of donor

Where donor imposes obligation upon the donee:
a. Donee is liable to pay only debts previously contracted
b. Liable for subsequent debts only when there is stipulation to that
effect
c. He is not liable for debts in excess of the value of the donation
received, unless contrary is intended
Where there is no stipulation regarding the payment of debts
a. Donee generally not liable to pay donors debts
b. He is responsible therefore only if the donation has been made
in fraud of creditors
c. He is not liable beyond the value of the donation received
CHAPTER 4
REVOCATION AND REDUCTION OF DONATIONS

o
o
o

o
o

o
o
o

Birth of a child
Donor has no child W legit or illegit at the time of
donation
If donor is aware of conception, cannot revoke the
donation upon birth of the child
If donor is not aware, child is considered to be not
existing
Appearance of a child
Donor had only one child whom he believed to have
already died at the time of donation
Would not revoke the donation; may be reduced
Adoption of a child
Also a ground for revocation or reduction
Exception to the rule that a donation inter vivos shall be
irrevocable by the donor
Minor child

Art. 760- Grounds for revocation and reduction of donation

1. Revocation affects the whole donation and is allowed during the
lifetime of the donor. The grounds are:
- Birth, appearance or adoption of a child
- Non-fulfillment of a resolutory condition imposed by donor
- Ingratitude of the donee
2. Reduction generally affects a portion only of the donation and is
allowed during the lifetime of the donor or after his death. Grounds are:
- Failure of the donor to reserve sufficient means for support of
himself or dependent relatives
- Failure of donor to reserve sufficient property to pay off his
existing debts
- Inofficiousness
- Birth, appearance or adoption of a child
Birth, appearance, or adoption of a child
- Applies to all donations inter vivos
- NOT APPLY TO:
o Mortis causa (revocable at will by donor)
o Onerous (really contracts)
o Propter nuptias
- Apply when donor did not have any child or descendant

Art. 761- Extent and basis of revocation or reduction

Birth, appearance or adoption of child
- Cannot give more than he may give by will
- Amount subject to revocation or reduction is the excess over the
portion that may be freely disposed of by will
- Basis of revocation or reduction is the value of the whole estate
of the donor at the time of birth, appearance or adoption and
not at the time of the death of the donor
Art. 762- Obligation of donee upon revocation or reduction
1. In case of revocation or reduction under Art.760, the obligation of the
donee depends upon the situation of the property donated
- If the property affected is still in his possession, he must return the
same.
- If he has sold the property, he must give its value.
- If the property has been mortgaged by him, and the donor
redeemed the mortgage, he must reimburse the donor.
- If the property cannot be returned, as when it has been lost or
destroyed, he must return its value at the time of the perfection
of the donation.

2. It is presumed that the price at which the property is sold is its value.
- If the price is less than its actual value, the donee is not liable for
the difference absent proof of bad faith.
- When the property cannot be returned, its value shall be
determined not as of the time of the loss but as of the time of
the donation.
Art. 763- Prescription of Action for Revocation
Revoked ipso jure by operation of law by the happening of any of the
events mentioned in Art 760.
-

Action to revoke not essential

Revocation is not self-operative

4 years. From:
- Birth of first child; birth of another does not revive prescription
- Time of legitimation(birth of child or marriage of parents),
recognition or adoption
- Judicial declaration of filiation
- Time information was received regarding the existence of the
child believed to be dead
Action cannot be renounced
Several causes, earliest among them shall be the point of departure in
computing prescription
Art. 764- Failure to Comply with Conditions
- Donation may be revoked
- Must be fulfilled within the period fixed by the donor
o No period, court shall determine
-

Failure to comply: property reverts to the donor

Within 4 years from non-compliance
Court action necessary unless donee willingly surrenders the
property or its value
Waivable
Onerous- 10 years
Death of donee not a bar for an action to revoke

Art. 765- Revocation by reason of Ingratitude

- By the donee himself
- Not apply to donations propter nuptias, mortis causa and
onerous
- Exclusive enumeration
- 1 year prescription
a. Offense against donor, his wife or children under his parental
authority
- Conviction not necessary
- Mere preponderance of evidence sufficient
- If against a child who is no longer under parental authority,
donation cannot be revoked
b. Imputation to donor of any criminal offense or any act involving
moral turpitude
- Immaterial if the accusation can be proved EXCEPT
o Crime is committed against the donee, his wife or
children under his parental authority
o Act involving moral turpitude not amount to a crime
c. Refusal to support the donor when donee is morally or legally bound
- 2 requisites:
o Refusal to support the donor must be undue/without
reason
o Donee must be legally or morally bound to support the
donor
Art. 766-767. Effect of revocation on prior alienations and mortgages
-

If by non-compliance
Alienations and mortgages made by donee are void
Donor can recover:
o Value of property at the time of perfection of donation
OR
o Sum for which it was mortgaged
If by reason of ingratitude
Alienations and mortgages annotated shall subsist
Later A and M shall be void
Donor can recover property

Art. 768- Return of the fruits of the property donated

If the cause is:
- the birth, appearance or adoption of a child, or
- ingratitude, or
- inofficiousness of the donation (because the donor did not
reserve sufficient means for support), or
- he donated more than he could give by will, then
o only the fruits accruing from the filing of the complaint
need be returned.
o It can be implied that the donation remains valid up to
the time of the filing of the complaint.
If the cause is the non-fulfillment of any of the conditions imposed in the
donation, the fruits must be returned from the time of the breach of the
condition. The donation shall also return the property donated.
In case of inofficious donation which exceeds the free disposal by will,
the donation takes effect during the lifetime of the donor, the donee
appropriates the fruits, and the reduction may be asked only after the
donors death.
Art. 769- No Renunciation in Advance
- If act of ingratitude has already been committed, right to
revoke may be renounced
- Renunciation may be express or implied
- One who renounces must:
o Be aware of the act causing the ingratitude
o Have capacity to dispose of his property at the time the
waiver is made
- Action prescribes:
o Within 1 year from the time the donor had knowledge of
the act of ingratitude AND
o It was possible for him to bring the action
Art. 770- Transmission of action for revocation
- General rule: action to revoke is purely personal to the donor
and cannot be transmitted to the heirs
- Exception:
o If donee killed the donor
o If donor dies without having known of the act of
ingratitude

IF criminal case against the donee was instituted by the

donor but the donor dies before he could bring the civil
action for revocation
If the action for revocation has already been filed by the
donor before his death

Action against heirs of donee

- Heirs of donee not responsible for the acts of their predecessordonee
- But if the donor has already filed the complaint before the
donees death, the suit may be continued against his heirs.
Art. 771- Reduction of Inofficious Donations

Donations which are inofficious because they are more than

what the donor can give by will shall be reduced with regard to the
excess upon the death of the donor, after determining the net value of
the estate.
- May be completely cancelled

Thus, it follows that the donation is effective during the lifetime of

the donor and so, the donee, as owner of the property donated also
becomes owner of the fruits, although the donation should appear
inofficious.

For donations propter nuptias, they may be reduced for being

inofficious. Being liberalities, they remain subject to reduction for
inofficiousness upon the donors death, if they should infringe the
legitime of a forced heir.

The action to reduce the inofficious donation must be brought

within 5 years from the time of the donors death.
Art. 772- Persons entitled to ask for reduction
- Donor himself cannot ask for reduction
For the reduction of inofficious donations:
- Those who at the time of the donors death have a right to the
legitime
- Their heirs
- Successors in interest

Who cannot ask for reduction?

- Donees
- Devisees
- Legatees, who are not entitled to the legitime
- Creditors of the deceased
- Voluntary heirs of donors
Within 5 years from donors death
Art. 773- Reduction where there are 2 or more donations

The subsequent donations shall first be reduced and only if they

are not sufficient to cover the disposable portion should the earlier ones
be reduced also with regard to the excess.

If the two donations were perfected at the same time, the

reduction should be proportionate unless otherwise provided by the
donor.