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Heirs of Sevilla vs. Sevilla
G.R. No. 150179. 
April 30, 2003

Donation is an act of liberality whereby a person disposes gratuitously of a thing or right in favor of another who accepts it. Under Article 737 of the Civil Code, the donor’s capacity shall be determined as of the time of the making of the donation.  Like any other contract, an agreement of the parties is essential, and the attendance of a vice of consent renders the donation voidable.

There is fraud when, through the insidious words or machinations of one of the contracting parties, the other is induced to enter into a contract which, without them, he would not have agreed to. There is undue influence when a person takes improper advantage of his power over the will of another, depriving the latter of a reasonable freedom of choice. The following circumstances shall be considered: the confidential, family, spiritual and other relations between the parties, or the fact that the person alleged to have been unduly influenced was suffering from mental weakness, or was ignorant or in financial distress.

He who asserts, not he who denies, must prove.  We have consistently applied the ancient rule that if the plaintiff, upon whom rests the burden of proving his cause of action, fails to show in a satisfactory manner facts on which he bases his claim, the defendant is under no obligation to prove his exception or defense.  Fraud and undue influence that vitiated a party’s consent must be established by full, clear and convincing evidence, otherwise, the latter’s presumed consent to the contract prevails. Neither does the fact that the donation preceded the partition constitute fraud. 

A donation inter vivos, as in the instant case, is immediately operative and final.  As a mode of acquiring ownership, it results in an effective transfer of title over the property from the donor to the donee and the donation is perfected from the moment the donor knows of the acceptance by the donee. And once a donation is accepted, the donee becomes the absolute owner of the property donated.

Evidently, Felisa did not possess the capacity to give consent to or execute the deed of partition inasmuch as she was neither the owner nor the authorized representative of respondent Leopoldo to whom she previously transmitted ownership of her undivided share in Lot No. 653.  Considering that she had no legal capacity to give consent to the deed of partition, it follows that there is no consent given to the execution of the deed, and therefore, there is no contract to speak of.  As such, the deed of partition is void ab initio, hence, not susceptible of ratification.

Quilala vs. Alcantara
G.R. No. 132681.  December 3, 2001

Under Article 749 of the Civil Code, the donation of an immovable must be made in a public instrument in order to be valid, specifying therein the property donated and the value of the charges which the donee must satisfy.  As a mode of acquiring ownership, donation results in an effective transfer of title over the property from the donor to the donee, and is perfected from the moment the donor knows of the acceptance by the donee, provided the donee is not disqualified or prohibited by law from accepting the donation.  Once the donation is accepted, it is generally considered irrevocable, and the donee becomes the absolute owner of the property. The acceptance, to be valid, must be made during the lifetime of both the donor and the donee. It may be made in the same deed or in a separate public document, and the donor must know the acceptance by the donee.

In the case at bar, the deed of donation contained the number of the certificate of title as well as the technical description as the real property donated.  It stipulated that the donation was made for and in consideration of the “love and affection which the Donee inspires in the Donor, and as an act of liberality and generosity. This was sufficient cause for a donation.  Indeed, donation is legally defined as “an act of liberality whereby a person disposes gratuitously of a thing or right in favor of another, who accepts it.

Surely, the requirement that the contracting parties and their witnesses should sign on the left-hand margin of the instrument is not absolute. The intendment of the law merely is to ensure that each and every page of the instrument is authenticated by the parties. The requirement is designed to avoid the falsification of the contract after the same has already been duly executed by the parties.  Hence, a contracting party affixes his signature on each page of the instrument to certify that he is agreeing to everything that is written thereon at the time of signing.

Simply put, the specification of the location of the signature is merely directory.  The fact that one of the parties signs on the wrong side of the page, that does not invalidate the document.  The purpose of authenticating the page is served, and the requirement in the above-quoted provision is deemed substantially complied with.

In the same vein, the lack of an acknowledgment by the donee before the notary public does not also render the donation null and void.  The instrument should be treated in its entirety.  It cannot be considered a private document in part and a public document in another part.  The fact that it was acknowledged before a notary public converts the deed of donation in its entirety a public instrument.  The fact that the donee was not mentioned by the notary public in the acknowledgment is of no moment.  To be sure, it is the conveyance that should be acknowledged as a free and voluntary act.  In any event, the donee signed on the second page, which contains the Acknowledgment only.  Her acceptance, which is explicitly set forth on the first page of the notarized deed of donation, was made in a public instrument.

Republic vs. Silim, G.R. No. 140487, April 2, 2001

On 17 December 1971, respondents, the Spouses Leon Silim and Ildefonsa Mangubat, donated a 5,600 square meter parcel of land in favor of the Bureau of Public Schools, Municipality of Malangas, Zamboanga del Sur  (BPS).  In the Deed of Donation, respondents imposed the condition that the said property should “be used exclusively and forever for school purposes only. This donation was accepted by Gregorio Buendia, the District Supervisor of BPS, through an Affidavit of Acceptance and/or Confirmation of Donation.

Donations, according to its purpose or cause, may be categorized as: (1) pure or simple; (2) remuneratory or compensatory; (3) conditional or modal; and (4) onerous.  A pure or simple donation is one where the underlying cause is plain gratuity. This is donation in its truest form. On the other hand, a remuneratory or compensatory donation is one made for the purpose of rewarding the donee for past services, which services do not amount to a demandable debt. A conditional or modal donation is one where 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 than that of the donation given. Finally, an onerous donation is that 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 to or more than the thing donated.

The purpose of the formal requirement for acceptance of a donation is to ensure that such acceptance is duly communicated to the donor. 

The actual knowledge by respondents of the construction and existence of the school building fulfilled the legal requirement that the acceptance of the donation by the donee be communicated to the donor.

Finally, it is respondents' submission that the donee, in exchanging the donated lot with a bigger lot, violated the condition in the donation that the lot be exclusively used for school purposes only.

What does the phrase "exclusively used for school purposes" convey? "School" is simply an institution or place of education. "Purpose" is defined as "that which one sets before him to accomplish or attain; an end, intention, or aim, object, plan, project.  Term is synonymous with the ends sought, an object to be attained, an intention, etc. "Exclusive" means "excluding or having power to exclude (as by preventing entrance or debarring from possession, participation, or use); limiting or limited to possession, control or use.

Without the slightest doubt, the condition for the donation was not in any way violated when the lot donated was exchanged with another one.  The purpose for the donation remains the same, which is for the establishment of a school.  The exclusivity of the purpose was not altered or affected.  In fact, the exchange of the lot for a much bigger one was in furtherance and enhancement of the purpose of the donation.  The acquisition of the bigger lot paved the way for the release of funds for the construction of Bagong Lipunan school building which could not be accommodated by the limited area of the donated lot.

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Republic Act No. 386
The Civil Code of the Philippines

Title III. Donation
Note: To get to the article you want, click the Chapter headings.

Chapter I. Nature of Donation

Article 725     Definition of donation
Article 726     Classification of donation
Article 727     Effect of illegal or impossible conditions
Article 728     Donations mortis causa
Article 729     Donations inter vivos
Article 730     Suspensive conditions fulfilled beyond donor’s lifetime
Article 731     Donation subject to resolutory condition of donor’s survival
Article 732     Suppletory effect of rules on contracts
Article 733     Rules for onerous and remuneratory donations
Article 734     Perfection of donation

Chapter 2. Persons Who May Give or Receive Donation

Article 735     Who may donate
Article 736     Donation by a guardian or trustee
Article 737     Determination of guardian’s capacity        
Article 738     When a person “specially disqualified” to accept a                         donation
Article 739     Donations that are void because of moral considerations
Article 740     Applicability of rules on incapacity to succeed by will
Article 741     Minors may be donees
Article 742     Donations to conceived an unborn children
Article 743     Disguised donations to incapacitated persons
Article 744     Donation of the same object to two or more different                         donees
Article 745     Formalities for acceptance
Article 746     Applicability of the article on when acceptance is to be                         made
Article 747     Additional duty of those who accept for others
Article 748     Importance of formalities for donations of movable                         property
Article 749     Importance of formalities for donations of real property

Chapter 3. Effects of Donation and Limitations Thereon

Article 750     Reason for the law and limitations thereon
Article 751     Donation of future property
Article 752     Limitations on the giver
Article 753     Accretion
Article 754     Subrogation of donee          
Article 755     Donations with reservations on the right to dispose
Article 756     Donation of naked ownership and the usufruct     
Article 757     Conventional reversion
Article 758     Stipulation that donee should pay donor’s debts
Article 759     Rules when there is no such stipulation

Chapter 4. Revocation and Reduction of Donations

Article 760     Two kinds of inofficious donations
Article 761     Reduction of donation
Article 762     What donee must do if donation is reduced
Article 763     Prescription of action for revocation or reduction
Article 764     Failure to comply with conditions
Article 765     Revocation for acts of ingratitude
Article 766     Effect of alienations and mortgages if the donation is                         revoked because of ingratitude
Article 767     Rule when third persons have the property or it has been                         mortgaged; effect of insolvency, loss or deterioration
Article 768     Returning of fruits
Article 769     No renunciation in advance of the action to revoke                         because of ingratitude
Article 770     No transmissibility of rights
Article 771     Rules on inofficious donations
Article 772     Persons who can ask for reduction of inofficious                          donations; non-waiver; prescriptive period; collation
Article 773     Preferences for earlier donations

 

Chapter 1. Nature of Donations

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. (618a)

Art. 726. When a person gives to another a thing or right on account of the latter's merits or of the services rendered by him to the donor, provided they do not constitute a demandable debt, or when the gift imposes upon the donee a burden which is less than the value of the thing given, there is also a donation. (619)

Art. 727. Illegal or impossible conditions in simple and remuneratory donations shall be considered as not imposed. (n)

Art. 728. Donations which are to take effect upon the death of the donor partake of the nature of testamentary provisions, and shall be governed by the rules established in the Title on Succession. (620)

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

Art. 730. The fixing of an event or the imposition of a suspensive condition, which may take place beyond the natural expectation of life of the donor, does not destroy the nature of the act as a donation inter vivos, unless a contrary intention appears. (n)

Art. 731. When a person donates something, subject to the resolutory condition of the donor's survival, there is a donation inter vivos. (n)

Art. 732. Donations which are to take effect inter vivos shall be governed by the general provisions on contracts and obligations in all that is not determined in this Title. (621)

Art. 733. Donations with an onerous cause shall be governed by the rules on contracts and remuneratory donations by the provisions of the present Title as regards that portion which exceeds the value of the burden imposed. (622)

Art. 734. The donation is perfected from the moment the donor knows of the acceptance by the donee. (623)

Chapter 2. Persons Who may Give or Receive a Donation

Art. 735. All persons who may contract and dispose of their property may make a donation. (624)

Art. 736. Guardians and trustees cannot donate the property entrusted to them. (n)

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

Art. 738. Al those who are not specially disqualified by law therefor may accept donations. (625)

Art. 739. The following donations shall be void:

(1) Those made between persons who were guilty of adultery or concubinage at the time of the donation;

(2) Those made between persons found guilty of the same criminal offense, in consideration thereof;

(3) Those made to a public officer or his wife, descendants and ascendants, by reason of his office.

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

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

Art. 741. Minors and others who cannot enter into a contract may become donees but acceptance shall be done through their parents or legal representatives. (626a)

Art. 742. Donations made to conceived and unborn children may be accepted by those persons who would legally represent them if they were already born. (627)

Art. 743. Donations made to incapacitated persons shall be void, though simulated under the guise of another contract or through a person who is interposed. (628)

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 persons. (n)

Art. 745. The donee must accept the donation personally, or through an authorized person with a special power for the purpose, or with a general and sufficient power; otherwise, the donation shall be void. (630)

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

Art. 747. Persons who accept donations in representation of others who may not do so by themselves, shall be obliged to make the notification and notation of which Article 749 speaks. (631)

Art. 748. The donation of a movable may be made orally or in writing.

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

If the value of the personal property donated exceeds five thousand pesos, the donation and the acceptance shall be made in writing, otherwise, the donation shall be void. (632a)

Art. 749. In order that the donation of an immovable may be valid, it must be made in a public document, specifying therein the property donated and the value of the charges which the donee must satisfy.

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

If the acceptance is made in a separate instrument, the donor shall be notified thereof in an authentic form, and this step shall be noted in both instruments. (633)

Chapter 3. Effect of Donations and Limitations Thereon

Art. 750. The donations may comprehend all the present property of the donor, or part thereof, provided he reserves, in full ownership or in usufruct, sufficient means for the support of himself, and of all relatives who, at the time of the acceptance of the donation, are by law entitled to be supported by the donor. Without such reservation, the donation shall be reduced in petition of any person affected. (634a)

Art. 751. Donations cannot comprehend future property.

By future property is understood anything which the donor cannot dispose of at the time of the donation. (635)

Art. 752. The provisions of Article 750 notwithstanding, no person may give or receive, by way of donation, more than he may give or receive by will.

The donation shall be inofficious in all that it may exceed this limitation. (636)

Art. 753. When a donation is made to several persons jointly, it is understood to be in equal shares, and there shall be no right of accretion among them, unless the donor has otherwise provided.

The preceding paragraph shall not be applicable to donations made to the husband and wife jointly, between whom there shall be a right of accretion, if the contrary has not been provided by the donor. (637)

Art. 754. The donee is subrogated to all the rights and actions which in case of eviction would pertain to the donor. The latter, on the other hand, is not obliged to warrant the things donated, save when the donation is onerous, in which case the donor shall be liable for eviction to the concurrence of the burden.

The donor shall also be liable for eviction or hidden defects in case of bad faith on his part. (638a)

Art. 755. The right to dispose of some of the things donated, or of some amount which shall be a charge thereon, may be reserved by the donor; but if he should die without having made use of this right, the property or amount reserved shall belong to the donee. (639)

Art. 756. The ownership of property may also be donated to one person and the usufruct to another or others, provided all the donees are living at the time of the donation. (640a)

Art. 757. Reversion may be validly established in favor of only the donor for any case and circumstances, but not in favor of other persons unless they are all living at the time of the donation.

Any reversion stipulated by the donor in favor of a third person in violation of what is provided in the preceding paragraph shall be void, but shall not nullify the donation. (614a)

Art. 758. When the donation imposes upon the donee the obligation to pay the debts of the donor, if the clause does not contain any declaration to the contrary, the former is understood to be liable to pay only the debts which appear to have been previously contracted. In no case shall the donee be responsible for the debts exceeding the value of the property donated, unless a contrary intention clearly appears. (642a)

Art. 759. There being no stipulation regarding the payment of debts, the donee shall be responsible therefor only when the donation has been made in fraud of creditors.

The donation is always presumed to be in fraud of creditors, when at the time thereof the donor did not reserve sufficient property to pay his debts prior to the donation. (643)

Chapter 4. Revocation and Reduction of Donations

Art. 760. Every donation inter vivos, made by a person having no children or descendants, legitimate or legitimated by subsequent marriage, or illegitimate, may be revoked or reduced as provided in the next article, by the happening of any of these events:

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

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

(3) If the donor subsequently adopts a minor child. (644a)

Art. 761. In the cases referred to in the preceding article, the donation shall be revoked or reduced insofar as it exceeds the portion that may be freely disposed of by will, taking into account the whole estate of the donor at the time of the birth, appearance or adoption of a child. (n)

Art. 762. Upon the revocation or reduction of the donation by the birth, appearance or adoption of a child, the property affected shall be returned or its value if the donee has sold the same.

If the property is mortgaged, the donor may redeem the mortgage, by paying the amount guaranteed, with a right to recover the same from the donee.

When the property cannot be returned, it shall be estimated at what it was worth at the time of the donation. (645a)

Art. 763. The action for revocation or reduction on the grounds set forth in article 760 shall prescribe after four years from the birth of the first child, or from his legitimation, recognition or adoption, or from the judicial declaration of filiation, or from the time information was received regarding the existence of the child believed dead.

This action cannot be renounced, and is transmitted, upon the death of the donor, to his legitimate and illegitimate children and descendants. (646a)

Art. 764. The donation shall be revoked at the instance of the donor, when the donee fails to comply with any of the conditions which the former imposed upon the latter.

In this case, the property donated shall be returned to the donor, the alienations made by the donee and the mortgages imposed thereon by him being void, with the limitations established, with regard to third persons, by the Mortgage Law and the Land Registration Laws.

This action shall prescribe after four years from the noncompliance with the condition, may be transmitted to the heirs of the donor, and may be exercised against the donee's heirs. (647a)

Art. 765. The donation may also be revoked at the instance of the donor, by reason of ingratitude in the following cases:

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

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

(3) If he unduly refuses him support when the donee is legally or morally bound to give support to the donor. (648a)

Art. 766. Although the donation is revoked on account of ingratitude, nevertheless, the alienations and mortgages effected before the notation of the complaint for revocation in the Registry of Property shall subsist.

Later ones shall be void. (649)

Art. 767. In the case referred to in the first paragraph of the preceding article, the donor shall have a right to demand from the donee the value of property alienated which he cannot recover from third persons, or the sum for which the same has been mortgaged.

The value of said property shall be fixed as of the time of the donation. (650)

Art. 768. When the donation is revoked for any of the causes stated in Article 760, or by reason of ingratitude, or when it is reduced because it is inofficious, the donee shall not return the fruits except from the filing of the complaint.

If the revocation is based upon noncompliance with any of the conditions imposed in the donation, the donee shall return not only the property but also the fruits thereof which he may have received after having failed to fulfill the condition. (651)

Art. 769. The action granted to the donor by reason of ingratitude cannot be renounced in advance. This action prescribes within one year, to be counted from the time the donor had knowledge of the fact and it was possible for him to bring the action. (652)

Art. 770. This action shall not be transmitted to the heirs of the donor, if the latter did not institute the same, although he could have done so, and even if he should die before the expiration of one year.

Neither can this action be brought against the heir of the donee, unless upon the latter's death the complaint has been filed. (653)

Art. 771. Donations which in accordance with the provisions of Article 752, are inofficious, bearing in mind the estimated net value of the donor's property at the time of his death, shall be reduced with regard to the excess; but this reduction shall not prevent the donations from taking effect during the life of the donor, nor shall it bar the donee from appropriating the fruits.

For the reduction of donations the provisions of this Chapter and of Articles 911 and 912 of this Code shall govern. (654)

Art. 772. Only those who at the time of the donor's death have a right to the legitime and their heirs and successors in interest may ask for the reduction or inofficious donations.

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

The donees, devisees and legatees, who are not entitled to the legitime and the creditors of the deceased can neither ask for the reduction nor avail themselves thereof. (655a)

Art. 773. If, there being two or more donations, the disposable portion is not sufficient to cover all of them, those of the more recent date shall be suppressed or reduced with regard to the excess. (656)

 


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