EBAROLA, ALAN V.

LAW ON PROPERTY

SATURDAY 8:00- 12:00

REPORT ON
ARTICLES 750-773
OF THE CIVILCODE
OF THE
PHILIPPINES




EFFECT OF DONATION AND LIMITATIONS THEREON/
REVOCATION AND REDUCTION OF DONATIONS

Nature of Donations
Donation is an act of liberality whereby a person disposes
gratuitously of a thing or right in favor of another, who accepts
it (Article 725).

Kinds of Donation :
1) Simple or Pure ( Article 725 )
2) Remuneratory ( Article 726, 1
st
portion )
3) Conditional ( Articles 730, 731 and 764 )
4) Modal ( Articles 726, 2
nd
portion )
5) Onerous ( Article 733 )

Effect of illegal or impossible conditions If illegal or impossible
conditions are imposed on a pure or remuneratory donation,
they are deemed not imposed at all (Article 727). The donation
remains valid without the condition. This is the same rule
followed in testamentary succession because both are
gratuitous modes of acquiring ownership.

However, onerous donations are not covered by the Article.
They are governed by the law on contracts where the rule is
that if illegal or impossible conditions are imposed on contracts,
the obligation itself becomes void (Article 1183). There is an
onerous donation if a burden is imposed on the donee and the
burden is equivalent to the value of the thing donated or when
a donation is made in settlement or payment of a demandable
debt.

Perfection
Donation is perfected, not from the time of acceptance of
the donation by the donee, but from the moment the donor
has known that the donee has accepted the donation (Article
734).
The acceptance must be made during the lifetime of the
donor and of the done (Article 746).

Capacity to Make and Accept Donations
1) In order that a person can make a donation three requisites
are necessary:
1) He must have the capacity to enter into contracts;
2) He must be able to dispose of his property; and
3) He must not be prohibited or disqualified by law from
making the donation

Prohibited Donations
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 (Article 739);
4) Those made to the priest who heard the confession of the
testator during his last illness, or the minister of the gospel who
extended spiritual aid to him during the same period;
5) Those made to the relatives of such priest or minister of the
gospel within the fourth degree, the church, order, chapter,
community, organization, or institution to which such priest or
minister may belong;
6) Those made by the ward to the guardian before final account
of the guardianship have been approved, unless the guardian is
a spouse, ascendant, descendant, brother or sister;
7) Those made to the attesting witness to the execution of a
will, the spouse, parents, or children, or any one claiming under
such witness, spouse, parents, or children;
8) Those made to the physician, surgeon, nurse, health officer
or druggist who took care of the testator during his last illness;
9) Those made to individuals, associations and corporations not
permitted by law to inherit (Article 1027);
10) Those made by the spouse to each other during the
marriage, or between those persons living together as husband
and wife without a valid marriage (Article 87, Family Code )

Effect of donations made to incapacitated persons 31 the
donation shall be void though simulated under the guise of
another contract or through a person who is interposed.
Formalities
1) If the donation is simple or remuneratory:
(1) If movable
a) If the value of the property is worth five thousand pesos or
less, there must be simultaneous delivery of the thing or the
document representing the right donated to the donee
(actualor constructive delivery). Oral donation is allowed here
but there is no prohibition to accept the donation in writing.
b) If the value of the personal property donated exceeds five
thousand pesos - the donation and the acceptance must
bemade in writing, although it need not be in a public
instrument. Otherwise, the donation shall be void even if there
is simultaneous delivery (Article 748).
(2) If immovable
a) It must be made in a public document (notarized),
specifyingtherein the property donated and the value of the
charges which the donee must satisfy.
b) The acceptance may be made in the same deed burden
ofdonation or in a separate public document, but it shall not
take effect unless it is done during the lifetime of the donor.
c) 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 (Article 749).
2) If the donation is conditional:
The formalities required above are applicable to that
portion which exceeds the value of the burden imposed, while
the formalities prescribed for the execution of ordinary
contracts are applicable to that portion which is the equivalent
of such burden (Article 733).
3) If the donation is onerous:
The formalities prescribed for the execution of ordinary
contracts shall have to be
complied (Article 733). They need not be in public instruments
because they are governed
by the rules of contracts .
4) If the donation is by reason of marriage settlement:
The Statute of Frauds shall have to be complied with.
5) If the donation is mortis causa:
The formalities prescribed for the execution of wills shall
have to be complied with (Article 728).

Effect of inofficious donations
Donations which are inofficious shall not prevent the
donations from taking effect during the life of the donor, nor
shall it bar the donee from appropriating the fruits (Article771).
However, when the donor dies, the compulsory heirs
whose legitime is impaired can ask for the reduction of the
donation.
Reversion
The property donated may be restored or returned to the
a) donor or to Reversion (restoration or return) to the donor or
to his estate) may be validly established in favor of the donor or
in favor of other persons; hnor his estate; or b) in favor of other
persons who must be living at the time of the donation;
otherwise, the reversion is void, although the donation is still
valid (Article 757). The reversion is a condition established in
the deed of donation.
Revocation
A donation where the donor did not reserve property or
assets for himself in full ownership or in usufruct sufficient for
his support and all relatives legally dependent upon him, is not
void. It is merely reducible to the extent that the support to
himself and his relatives is impaired or prejudiced. If the donor
did not reserve enough assets to pay his creditors whom he
owed before the donation, the donation is presumed to be in
fraud of creditors (Article 759). The creditors may rescind the
donation to the extent of their credits (Article 1387). The action
is known as accion pauliana. Any property which the donor
could not dispose of at the time of the donation is future
property. Exception to the rule that future property cannot be
donated: The exception involves marriage settlements of
prospective spouses wherein they are allowed to donate
properties to each other to the extent permitted by law (Article
84, Family Code).

Special modes by which donation inter vivos may be revoked:
1) Supervening birth, survival, or adoption of a child (Article 760
2) Non-fulfillment of the condition or charge imposed (Article
764);
3) Acts of ingratitude of the donee (Article 765);
4) Inofficious donations (Article 771);
5) When the donation is in fraud of creditors and the amount of
the judgment is equal or more than the amount of the
disposable free portion (Article 1387).

Reduction
Special modes by which donation inter vivos may be reduced:
When donor did not reserve sufficient means for his
support as well as for the support of all relatives who, at
the time of the donation, are by law entitled to be
supported by such donor (Article 750).
2) Supervening birth, survival or adoption of a child 34 (Article
760).
3) Inofficious donation (Article 771).
4) When the donation is in fraud of creditors and the amount of
the judgment is equal or more than the amount of the
disposable free portion (Article 1387)

How reduction takes place:
From the phraseology of Article 763, a judicial action is
necessary for the reduction of the donation if any of the events
mentioned in Article 760 shall happen.

Prescription:
The action 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.


Distinctions between Articles 760 (supervening birth, survival,
or adoption of a child) and Article 764 (non-fulfillment of the
condition or charge imposed):

Article 764

Applies only to revocation.
The ground is failure to comply with the condition or
conditions imposed by the donor.
Alienation or mortgages executed by the donee are void,
unless, the grantee is an innocent third person.
Right of action can be waived or renounced there being no
prohibition.

Article 760

Applies both to revocation or reduction of the donation.
The grounds are (a) birth of a child; (b) appearance of a
child believeddead;and(c) subsequent adoption of a minor
child.
Mortgages executed by thedonee are valid.
The right of action cannot be renounced.

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 (Article 765).



The grounds enumerated for the revocation of donations by
reason of ingratitude are limitative. They are exclusive.
The general rule is that donation are revocable by reason of the
ingratitude of the donee except the following donations:
1) Mortis causa donations because these donations take
effect after death of the donor. After death, the donor could
no longer initiate the revocation of the donation he executed.
2) Onerous donations because these donations are made for
some considerations, hence they can not just be revoked. Such
donations are not based on pure liberality.

Reduction/revocation of Inofficious donation:
Prescription:
Being similar to actions for recission of rescissible contracts
(Article 1390), the period of prescription for bringing the action
for revocation or reduction of the donation is four years to be
counted from the death of the donor.
Persons who can ask for revocation/reduction:
This kind of action is pursuable only after the donors death
(because the inofficiousness of the donation is determinable
only after death of the donor). Thus, only compulsory heirs and
their heirs and successors in interest may ask for the reduction
or inofficious donations.
Creditors of the donor can neither ask for the reduction nor
avail themselves thereof (Article772). This does not mean
however that such creditors have no right to impugn the
validity of the donation. They may do so if it was entered into in
fraud of them and the action for rescission is brought within the
period prescribed by law (Article 1387).
Order of reduction:
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
(Article 773) . In other words, the later donations must be
dropped first. The earlier donations are given preference in
accordance with the principle that, (1) priority in time gives
priority in rights, and (2) the irrevocability of donations inter
vivos.

As exception to Article 773, there shall be no reduction in the
case of certain wedding gifts made in favor of descendants by
their parents or ascendants which should not exceed one-tenth
of the sum of the disposable free portion (Article 1070).

Rules as to fruits for revoked or reduced donations:
1) If ground is under Article 760 (supervening birth, survival or
adoption of a child) the donee shall not return the fruits
except from the filing of the complaint (Article 768);
2) If ground is under Article 764 (Non-fulfillment of the
condition or charge imposed) 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 (Article 768);
3) If ground is under 771 (Inofficious donations) while the
donor lives, the donation shall take effect, and therefore, the
donee shall be entitled to the fruits (Article 771)