Central Philippines University vs C.A.

ISSUE:
Whether or not all the rights of the done are deemed
lost and extinguished because of the non-fulfillment of
the conditions?

FACTS:

In 1939, late Don Ramon Lopez, Sr. executed a deed of

donation in favor of Central Philippines University (CPU)
of a parcel of land with the following conditions:
The land shall be exclusively use for the establishment
of and use of a medical college.
CPU shall not sell, transfer or convey to any third party
or any way the land.
The said land shall be called Ramon Lopez Campus
However in 1989, the respondents who are heirs of Don
Ramon filed an action for annulment of donation, reconveyance and damages against CPU alleging that
since 1939 has not complied with the conditions of the
donation and that the University negotiated with
National Housing Authority (NHA) to exchange the
donated land with another land.

SUPREME COURT RULING:

Supreme Court finds that since the records are clear

and facts are undisputed that since the execution of the
deed of donation until filing of instant action, petitioner
has failed to comply with its obligation as done. CPU
has slept its obligation for unreasonable length of time
so it is only just and equitable to declare the donation
ineffective.
Supreme Court declared that the conditions set forth in
the donation were resolutory conditions which mean
the fulfillment of the conditions extinguishes the
obligation.