Vitug v.

Court of Appeals
GR No. 82027 March 29, 1990

Facts:
The case is a chapter in an earlier suit involving the issue on two (2) wills of the late Dolores Vitug who
died in New York, USA in Nov 1980. She named therein private respondent Rowena Corona (Executrix)
while Nenita Alonte was co-special administrator together with petitioner Romarico pending probate.

In January 1985, Romarico filed a motion asking for authorization of the probate court to sell shares of
stocks and real property of the estate as reimbursements for advances he made to the estate. The said
amount was spent for payment of estate tax from a savings account in the Bank of America.

Rowena Corona opposed the motion to sell contending that from the said account are conjugal funds,
hence part of the estate. Vitug insisted saying that the said funds are his exclusive property acquired by
virtue of a survivorship agreement executed with his late wife and the bank previously. In the said
agreement, they agreed that in the event of death of either, the funds will become the sole property of the
survivor.

The lower court upheld the validity of the survivorship agreement and granted Romarico's motion to sell.
The Court of Appeals however held that said agreement constituted a conveyance mortis causa which did
not comply with the formalities of a valid will. Further, assuming that it is donation inter vivos, it is a
prohibited donation. Vitug petitioned to the Court contending that the said agreement is an aleatory
contract.

Issue:
Whether or not the conveyance is one of mortis causa hence should conform to the form required of wills

Held:
NO. The survivorship agreement is a contract which imposed a mere obligation with a term--being death.
Such contracts are permitted under Article 2012 on aleatory contracts. When Dolores predeceased her
husband the latter acquired upon her death a vested right over the funds in the account. The conveyance is
therefore not mortis causa.