TITLE I: CLASSIFICATION OF PROPERTY

PRELIMINARY PROVISIONS
PROPERTY THINGS
traditionally, property extends only to those extends to all objects that exist, whether
things w/c are already possessed and found already in possession of man or not
in the possession of man
Under the Civil Code, these are things which are Broader in scope: corporeal and incorporeal ;
susceptible of appropriation (although not yet includes both material objects and rights
appropriated)
Not all things may be considered as property. A thing must be susceptible of appropriation before it
can be considered as property. Things w/c cannot, therefore, be subjected to human control by
reason of sheer physical impossibility are not considered as property.

CLASSIFICATION OF THINGS
1. Res nullius- belonging to no one
2. Res communes – belonging to everyone
3. Res alicujus – belonging to someone

CLASSIFICATION OF PROPERTY
Mobility and non-mobility
1) movable or personal property (like a car)
2) immovable or real property (like land)
Ownership
1) public dominion or ownership (like rivers)
2) private dominion or ownership (like a fountain pen)
Alienability
1) within the commerce of man (or which may be the objects of contracts or judicial
transactions)
2) outside the commerce of man (like prohibited drugs)
PROPERTY | VLG-2AA 1
Existence
1) present property (res existentes)
2) future property (res futurae)
[NOTE: Both present and future property, like a harvest, may be the subject of sale but
generally not the subject of a donation]
Materiality or Immateriality
1) tangible or corporeal (objects which can be seen or touched, like the paper on which is
printed a P1,000 Bangko Sentral Note)
2) intangible or incorporeal (rights or credits, like the credit represented by a P1,000
Bangko Sentral Note)
Dependence or Importance
1) Principal
2) Accessory
Capability of Substitution
1) fungible (capable of substitution by other things of the same quantity and quality)
2) non-fungible (incapable of such substitution, hence, the identical thing must be given
or returned)
Nature or Definiteness
1) generic (one referring to a group or class)
2) specific (one referring to a single, unique object)
Whether in the Custody of the Court or Free
1) in custodia legis (in the custody of the court) — when it has been seized by an officer
under a writ of attachment or under a writ of execution.
2) “free’’ property (not in “custodia legis’’)

414. All things which are REQUISITES: (in order to qualify as property)
or may be the object 1. Criterion of susceptibility to appropriation
of appropriation 2. Utility – serve as a means to satisfy human needs
are considered either: 3. Substantivity or Individuality – thing must have an
(1) Immovable or real autonomous and separate existence
property; or
(2) Movable or personal IMPORTANCE OF CLASSIFICATION
property. 1. For purposes of applying the rules of acquisitive
prescription
a. Movables – uninterrupted possession for 4 years in good
faith or 8 years (uninterrupted) w/o need of any other
*** condition
b. Immovables – possession of 10 years or 30 years, w/o
need of title or of good faith
CLASSIFICATION OF 2. In determining the propriety of the object of the contracts
PROPERTY of pledge, chattel mortgage and real estate mortgage
(as to mobility and non- a. Movables – can be object of pledge or chattel mortgage
mobility) b. Immovables – real estate mortgage
1. Immovable or 3. For purposes of determining the formalities of a donation
movable (Arts. 415 to 4. In extrajudicial deposit – only movables may be the object of
417); extrajudicial deposit
2. Movables, in turn, are 5. In crimes of theft, robbery and usurpation
classified into 6. For purposes of determining the venue in remedial law
consumable or non- a. Real action – action affects title to or possession of real
consumable property or interest therein, the action must be filed in
(Art. 418); the proper court wherein the real property involved, or a
3. From the viewpoint of portion thereof, is situated.
ownership, property is b. Personal action – all other actions may be commenced
classified either as and tried where the plaintiff or the defendant resides, at
property of public the election of the plaintiff
dominion or of private
ownership (Arts. 419
to 425).
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CHAPTER 1
IMMOVABLE PROPERTY (real property)
KINDS of IMMOVABLE (REAL) PROPERTY
1. By NATURE- those which by their essence and nature are immovable or cannot be moved
from one place to another
2. By INCORPORATION - immovable by reason of their attachment or incorporation to an
immovable in such manner as to be an integral part thereof
3. By DESTINATION - essentially movable, but by the purpose for which they have been
placed in an immovable, partake of the nature of the latter because of the added utility
derived therefrom
4. By ANALOGY or by LAW -
Art. 415. The following are IMMOVABLE property:
1. Land, buildings, roads  Lands and roads - always immovable. By their nature, they are
and constructions of considered as immovable or real property.
all kinds adhered to  Buildings – immovable by incorporation; that which substantially
the soil; adheres to the land and not which is merely superimposed on the soil
o House - immovable by reason of its adherence to the soil, once
the house is demolished its character as an immovable ceases
o GR: building is always an immovable
o Rule is not affected by the fact that the building is treated
separately from the land – Such a mortgage would still be a real
estate mortgage for the building would still be considered
immovable property even if dealt with separately and apart from
the land.
o Rule is not affected by the fact that the building is erected on a
land owned by another person –immovable property regardless of
whether or not said structure and the land on which it is adhered
 to belong to the same owner or whether it is erected by the owner
of the land or by a usufructuary or lessee
o XPN: the parties to a contract may by agreement treat as
personal property that which by nature would be a real property –
doctrine of estoppel applies (Navarro vs Tumalad)
 Construction Adhered to the Soil –immovable by incorporation;
ie. pipeline system adhering to the soil
o Steel towers (MERALCO) – NOT a real property; removable
2. Trees, plants, and  Trees and Plants – (incorporation) immovable because they form
growing fruits, while an integral part of the immovable; ceases to be immovable when cut
they are attached to or uprooted
the land or form an  Growing Fruits –immovable as long as they are still attached to the
integral part of an soil (ungathered)
immovable; o May be treated as PERSONAL property for purposes of
attachment and execution and Chattel Mortgage
o Sibal vs Valdez –sugarcanes; “for purposes of attachment and
execution, and for the purposes of the Chattel Mortgage Law,
ungathered products have the nature of personal property”
3. Everything attached • Everything attached to an immovable in a FIXED manner –by
to an immovable in a incorporation
fixed manner, in such  Attachment must be in a fixed manner –cannot be separated
a way that it cannot therefrom w/o breaking the material or deterioration of the object
be separated  Need not be attached by the owner
therefrom without  Intent of the parties may govern (ie. chattels)- principle of estoppel
breaking the material
or deterioration of the
object;
4. Statues, reliefs,  Statutes, reliefs, paintings or other objects for use or
paintings or other ornamentation – by destination
objects for use or  Requisites:
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ornamentation, 1. they must be placed in buildings or on lands by the owner of the 3
in buildings or on immovable or by his agent; and
lands by the owner of 2. the attachment must be intended to be permanent
the immovable in such Paragraph 3 Paragraph 4
a manner that it It is immaterial as to who makes Incorporation must be made by
reveals the intention the incorporation the owner of the immovable
to attach them either personally or through an
permanently to the agent
tenements; Separation is impossible Separation is possible w/o
deterioration of the immovable
or destruction of the material
5. Machinery,  Machineries, receptacles, instruments or implements –by
receptacles, destination’ essentially movables but by reason of their purpose
instruments or (industry or work), they are converted into real properties
implements intended  Requisites: (to be immobilized)
by the owner of the 1. They must be machinery, receptacles, instruments or
tenement for an implements;
industry or works 2. They must be placed by the owner of the tenement or by his
which may be carried agent;
on in a building or on 3. There must be an industry or work carried in such building or on
a piece of land, and the piece of land; and
which tend directly to 4. They must tend directly to meet the needs of said industry or
meet the needs of the work.
said industry or works;  GR: must be placed (only) by the owner (or agent) in order to be
considered as immovable
XPN: in case of lease, it may be stipulated that the machineries placed
by the lessee will be considered an immovable at the termination of
the lease
 They must be “essential” and “principal” elements of the industry
or work not merely incidental
 o Mindanao Bus Co vs City Assessor and Treasurer – in order that
movable equipment to be immobilized in contemplation of the law
they must first be “essential and principal elements of an industry
or works without which such industry or works would be unable to
function or carry on the industrial purpose for which it was
established.”
 Estoppel likewise applies
6. Animal houses,  Animal houses, pigeon-houses, etc—by destination
pigeon-houses,  Must be placed by the owner of the land in order to be considered a
beehives, fish ponds real property
or breeding places of  Even if not placed by the owner, such structures may still qualify as
similar nature, in case
real property under par 1 of Article 415 (construction attached to the
their owner has placed
them or preserves soil in a permanent manner)
them with the  Animals Included – animals in the pigeon-houses, beehives,
intention to have fishponds and breeding places mentioned in paragraph 6 of Article
them permanently 415 are likewise considered as real property
attached to the land,  animals will be considered as personal property under laws
and forming a which so provide for them pursuant to the second paragraph of
permanent part of it; Article 416 — referring to “real property which by any special
the animals in these provision of law is considered as personal property.”
places are included;  ie. fish in fishponds – considered as personal property for purposes of
theft under the RPC

7. Fertilizer actually used  Fertilizers –by destination

on a piece of land;  must actually be used on the land because it is only then that the
intention of the owner to use them on the tenement is beyond doubt.
 Fertilizers kept in the farmhouse are not immovable
8. Mines, quarries, and  Mines, quarries, slag dumps--considered immovable property
slag dumps, while the “while the matter thereof forms part of the bed,” that is, the matter
PROPERTY
matter |thereof
VLG-2AA forms thereof remains unsevered from the soil. 4
part of the bed, and o Once separated, they are no longer mines but minerals and are
waters either running considered as personal property.
or stagnant;  Waters –either running or stagnant, referred to here are those which
are found in their natural beds such as flowing streams, rivers or
canals.
9. Docks and structures  Docks and Structures --considered as immovables, though
which, though floating, as long as they are intended by their nature and object to
floating, are intended remain at a fixed place on a river, lake, or coast.
by their nature and  Power barges – immovable by destination
object to remain at a
fixed place on a river,
lake, or coast;
10. Contracts for public  Rights as Property —concept of property extends to rights
works, and servitudes provided that the same is patrimonial in nature
and other real rights  Patrimonial Rights
over immovable o Real rights—the power over a specific thing, without a passive
property. subject individually determined against whom such right may be
personally exercised; it is enforceable against the whole world
o Personal rights—the power to demand of another, as a definite
passive subject, the fulfillment of a prestation to give, to do or
not to do.
 How Rights are Classified
1. whether it is a personal or real right, and
2. whether the subject matter thereof is a personal or real property
 If the subject matter of the real right is a real property, then such
real right is a real property.
o Real estate mortgage is a real right and a real property by
itself
o Chattel mortgage is a real right and is a personal property by
 itself

CHAPTER 2
MOVABLE PROPERTY (personal property)
Art. 416. The following things are deemed to be personal property:
1. Those movables Test by exclusion
susceptible of
appropriation which
are not included in the
preceding article;
2. Real property which  there are certain properties classified under Article 415 of the Code
by any special as real property which may, by special provision of law, be
provision of law is considered as personal property for purposes of the application of
considered as the said special provision of law
personal property;  ie. applying the provisions of the RPC for the commission of the
crime of theft
 for purposes of attachment, execution and the Chattel Mortgage Law
3. Forces of nature which  The forces of nature in their original state are not, ordinarily, subject
are brought under to appropriation because of the degree of difficulty in appropriating
control by science; them.
and  if these forces of nature are brought under the control of man
through the help of science, thereby becoming appropriable, they are
now considered as property and classified as personal property
 examples: gas and electricity
4. In general, all things Test by description
which can be
transported from
place to place without
impairment of the real
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to which they 5
are fixed.
Art. 417. The following are also considered as personal property:
1. Obligations and
actions which have for
their object movables
or demandable sums;
and
2. Shares of stock of
agricultural,
commercial and
industrial entities,
although they may
have real estate.
Art. 418. Movable  CONSUMABLE –a movable w/c CANNOT be used in a manner
property is either appropriate to its nature without itself being consumed (ie. cigarette)
consumable or non-  NON-CONSUMABLE—a movable w/c CAN be used in a manner
consumable. To the appropriate to its nature without itself being consumed (ie. table)
first class belong  The classification of property into consumable or non-consumable
those movables applies only to movable property which are corporeal in nature and
which cannot be does not find application to immovable property.
used in a manner  In classifying movables into consumable or non-consumable, the basis
appropriate to their of the classification is the very nature of the corporeal object itself.
nature without their  On the other hand, the basis of the classification of movables into
being consumed; to fungible or non-fungible is simply the intention of the parties.
the second class
belong all the
others.
 BOOK III, TITLE III.- DONATION
CHAPTER 1
NATURE OF DONATIONS
Art. 725. Donation is  act of liberality by which a person impoverishes himself by a fraction
an act of liberality of his patrimony in favor of another person who is thereby enriched
whereby a person  ESSENTIAL ELEMENTS OF DONATION
disposes o essential reduction of the patrimony of the donor
gratuitously of a o increase in the patrimony of the donee
thing or right in o intent to do an act of liberality or animus donandi
favor of another,  Donative Intent—animus donandi; presumed present when one
who accepts it. gives a part of one’s patrimony to another without consideration. It is
not negated when the person donating has other intentions, motives
or purposes which do not contradict donative intent.
 The intent to donate must be effectively carried out. Hence, a mere
declaration of an intention or desire to donate is not a donation
 Donation as Contract –donation also requires the concurrence of
the reciprocal consent of the parties and it does not become perfect
until it is accepted by the donee (consent-object-cause)
 Donation as Mode of Acquisition of Ownership
Art. 726. When a  Article 726 speaks of  Donations inter vivos may be
person gives to REMUNERATORY or classified according to purpose
another a thing or COMPENSATORY DONATION, or cause into:
right on account of that is, one made for the 1. Pure or simple - plain
the latter's merits purpose of rewarding the donee gratuity
or of the services for past services, which services 2. Remuneratory or
rendered by him to do not amount to a demandable compensatory – art 726
the donor, provided debt. 3. Conditional or modal – art
they do not 727
constitute a 4. Onerous donation - that
demandable debt, which imposes upon the donee
PROPERTY
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the gift a reciprocal obligation or made 6
imposes upon the for a valuable consideration,
donee a burden the cost of which is equal to or
which is less than more than the thing donated
the value of the
thing given, there is
also a donation.
Art. 727. Illegal or  A conditional or modal donation is one where the donation is
impossible made in consideration of future services or where the donor imposes
conditions in simple certain conditions, limitations or charges upon the donee, the value
and remuneratory of which is inferior than that of the donation given.
donations shall be  if illegal or impossible conditions are imposed in simple or
considered as not remuneratory donations, then the donation is valid because the
imposed illegal or impossible conditions are simply considered as not imposed
and will, thus, be disregarded
Art. 728. Donations ARTICLE 728 ARTICLE 729
which are to take DONATION MORTIS CAUSA DONATION INTER VIVOS
effect upon the  donation is made in  donation takes effect during
death of the donor contemplation of the donor’s the donor’s lifetime or
partake of the death the full or naked independently of the donor’s
nature of ownership of the donated death, meaning that the full
testamentary properties will pass to the donee or naked ownership (nuda
provisions, and shall only because of the donor’s proprietas) of the donated
be governed by the death, then it is at that time that properties passes to the
rules established in the donation takes effect donee during the donor’s
the Title on lifetime
Succession.
Art. 729. When the
donor intends that
the donation shall
 take effect during  should be embodied in a last will  deed of donation- must be
the lifetime of the and testament, with all the executed and accepted with
donor, though the formalities for the validity of the formalities prescribed by
property shall not wills, otherwise it is void and Articles 748 and 749 of the
be delivered till cannot transfer ownership Civil Code, except when it is
after the donor's onerous in which case the
death, this shall be rules on contracts will apply
a donation inter (art 734)
vivos. The fruits of  he conveyance or alienation  GR: once accepted, becomes
the property from should be (expressly or by irrevocable
the time of the necessary implication) revocable  XPN: donor reserves the
acceptance of the ad nutum at the discretion of right to revoke it or if he
donation, shall the grantor reserves the right to dispose
pertain to the of all the properties
donee, unless the purportedly donated
donor provides How to Determine One from the Other
otherwise.
 Determination of whether the donor intended to transfer ownership
over the properties upon the execution of the deed
 depends upon the nature of the disposition made
Importance of Distinctions
 the validity or revocation of the donation depends upon its nature
 see pages 641- 647
Art. 730. The fixing of  When the time fixed for the commencement of the enjoyment of the
an event or the property donated be at the death of the donor, or when the
imposition of a suspensive condition is related to his death, confusion might arise
suspensive  To avoid it we must distinguish between the actual donation and the
condition, which execution thereof
may take place  he who makes the donation effective upon a certain date, even
beyond the natural though to take place at his death, disposes of that which he donated
expectation of life and he cannot afterwards revoke the donation nor dispose of the said
PROPERTY
of the |donor,
VLG-2AA does 7
property in favor of another
not destroy the  the designation of the donation as mortis causa, or a provision in the
nature of the act as deed to the effect that the donation is “to take effect at the death of
a donation inter the donor” are not controlling criteria; such statements are to be
vivos, unless a construed together with the rest of the instrument, in order to
contrary intention give effect to the real intent of the transferor
appears.  Hence, the title given to a deed of donation is NOT the
determinative factor which makes the donation inter vivos or mortis
causa
Art. 731. When a
person donates
something, subject
to the resolutory
condition of the
donor's survival,
there is a donation
inter vivos.
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.
Art. 733. Donations ARTICLE 733 CONDITIONAL OR
with an onerous ONEROUS DONATION MODAL DONATION
 cause shall be  Imposes upon the donee a  the donation is made in
governed by the reciprocal obligation or, to be consideration of future
rules on contracts more precise, this is the kind of services or where the donor
and remuneratory donation made for a valuable imposes certain conditions,
donations by the consideration, the cost of which limitations or charges upon
provisions of the is equal to or more than the the donee, the value of which
present Title as thing donated is inferior than that of the
regards that portion donation given
which exceeds the  completely governed not by the  governed by the law on
value of the burden law on donations but by the law contracts up to extent of the
imposed. on contracts burden and by the law on
 Article 748- 749 does not apply donations as regards that
portion which exceeds the
value of the burden imposed
 impossible or illegal shall annul  Illegal or impossible
the obligation (Article 1183) conditions, donation is still
valid (see Art 727)
Importance of Distinctions
 important for the purpose of determining: (1) the rules that shall
govern a particular donation; (2) the formalities to be followed; and
(3) the effect of imposition of illegal or impossible conditions.
Art. 734. The donation  Acceptance is indispensable : w/o acceptance, donation is not
is perfected from perfected
the moment the  theory of cognition
donor knows of the  Since donation is also a contract, the acceptance must be made
acceptance by the known to the offeror
donee.  Before notice of the acceptance, the offerer (donor) is not bound and
may withdraw the offer of donation.
o RATIO: no donation exists until the acceptance is known
 Effects of Acceptance - effective transfer of title over the property
PROPERTY | VLG-2AA from the donor to the donee. Hence, donee becomes the absolute
8
owner of the property donated, notwithstanding the condition
imposed by the donee
o GR: Once accepted, it is considered irrevocable – (may not be
revoked unilaterally or by the sole and arbitrary will of the
donor)
o XPN: upon the fulfillment of resolutory conditions, or may be
revoked only for the reasons provided in Articles 760, 764 and
765 of the Civil Code (subsequent birth of children of the
donor, failure by the donee to comply with the conditions
imposed, ingratitude of the donee and reduction of the
donation in the event of inofficiousness thereof)

CHAPTER 2
PERSONS WHO MAY GIVE OR RECEIVE A DONATION
Art. 735. All persons ARTICLE 735 ARTICLE 738
who may contract DONOR’S CAPACITY DONEE’S CAPACITY
and dispose of their  a person must be in possession  Juridical Capacity, Sufficient
property may make of the capacity to contract and  The law does NOT require
a donation. the capacity to dispose of his that the donee must possess
Art. 736. Guardians property and is not specifically capacity to act, which is
and trustees cannot prohibited to make a donation defined as “the power to do
donate the property (future properties – Art 751) acts with legal effect,” it
entrusted to them.  the capacity of the donor was to being sufficient that he must
Art. 737. The donor's be determined at the time of possesses juridical capacity
capacity shall be making of the donation (art 737) or “the fitness to be the
determined as of — ‘perfection of the donation subject of legal relations.”
the time of the  his subsequent incapacity does  So long as the donee
making of the not affect the validity of the possesses juridical capacity
donation.
Art. 738. All those who donation and not specially disqualified
are not specially by law, he may accept
disqualified by law donations.
therefor may accept
donations. DONATION CONTRACT OF SALE
 the donor must be the owner of  the thing must be licit and the
the thing donated at the time of vendor must have a right to
the donation transfer the ownership
thereof at the time it is
delivered
Art. 739. The following Persons who are disqualified to become donees are those to
donations shall be whom donations cannot be made by express provisions of law
void: 1. Those who  no previous criminal conviction is necessary
(1) Those made were guilty of since the guilt of the donor and the donee may
between persons adultery or be proved by preponderance of evidence
who were guilty of concubinage  does not apply to cases where the alleged
adultery or at the time of concubine did not know that the man was
concubinage at the the donation; married. The same principle will likewise apply
time of the to the man accused of committing the crime of
donation; adultery
(2) Those made 2. Those who  contemplates of a principal by inducement and
between persons were found a principal by direct participation
found guilty of the guilty of the  donation is made in consideration of the
same criminal same criminal commission of a crime shall be VOID
offense, in offense, if the  a previous criminal conviction is necessary,
consideration donation is unlike in paragraph 1
thereof; made in
(3) Those made to a consideration
public officer or his thereof;
wife, descedants 3. Public officers  When the donation is made to a public offi cer
PROPERTY | VLG-2AA by
and ascendants, or their or his or her spouse, descendants or 9
reason of his office. spouses, ascendants, the donation is likewise VOID.
In the case referred to descendants  While paragraph 3 of Article 739 refers only to
in No. 1, the action for and the “wife,” this should be construed as referring
declaration of nullity ascendants, if to the “spouse” so as to include the husband.
may be brought by the the donation
spouse of the donor or is made by
donee; and the guilt reason of their
of the donor and office;
donee may be proved 4. Those who are  See Article 740
by preponderance of incapacitated
evidence in the same to succeed by
action. will;
5. The spouses,  Spouse Inter Se during marriage
if the donation  Family Code, Article 87
is between  GR: spouses cannot donate to each other
them and during the marriage
made during  XPN: moderate gifts between the spouses
the marriage, given on the occasion of any family rejoicing
except
moderate
ones given on
the occasion
of any family
rejoicing;
6. Those who are  prohibition in Article 87 of the Family Code also
living together applies to persons living together as husband
as husband and wife without a valid marriage
and wife  For such prohibition to apply, it is necessary,
without a valid however, to prove that the donor and the donee
 marriage, if are living together as husband and wife.
the donation
is between
them and
made during
their
cohabitation
Art. 740. Incapacity to  the disqualifications contemplated extend only to those persons who
succeed by will are incapable of succeeding by virtue of Article 1027 of the Civil Code
shall be applicable and do not extend to those persons disqualified under Article 1032:
to donations inter 1. The priest who heard the confession of the (donor) during his last
vivos. illness, or the minister of the gospel who extended spiritual aid to
him during the same period;
2. 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;
3. A guardian with respect to (donations) made by a ward in his
favor before the final accounts of the guardianship have been
approved, even if the (donor) should die after the approval
thereof; nevertheless, any (donations) made by the ward in favor
of the guardian when the latter is his ascendant, descendant,
brother, sister, or spouse, shall be valid;
4. Any physician, surgeon, nurse, health officer or druggist who took
care of the (donor) during his last illness; and
5. Individuals, associations and corporations not permitted by law to
(receive donations)
Art. 741. Minors and  if what is donated is a personal property the value of which does not
others who cannot exceed P5,000 and the donation is pure, a minor or incapacitated
enter into a person may validly receive such donation when made orally and
contract
PROPERTY | VLG-2AA may simultaneously delivered 10
become donees but  However when the donation requires a written acceptance, whether in
acceptance shall be a private or public instrument, the provisions of Article 741 should
done through their strictly apply –must be accepted through parents or legal
parents or legal representatives
representatives.
Art. 742. Donations  A conceived child, although as yet unborn, is given by law a
made to conceived provisional personality of its own for all purposes favorable to it
and unborn children  the foetus has the juridical personality to become a donee, subject to
may be accepted by conditions under Article 41 of the civil code
those persons who DONATION TO CONCEIVED CHILD:
would legally WHEN VALID WHEN INVALID
represent them if  If the foetus had an intra-  if the foetus is already dead at
they were already uterine life of at least 7 the time of compete delivery
born. months, it is sufficient that it is  If the foetus, had an intra-
alive after the cutting of the uterine life of less than 7
umbilical cord. The foetus will months, it is NOT deemed born
then be considered a person if it dies within 24 hours after
even if it eventually dies. its complete delivery
 If the foetus, had an intra-
uterine life of less than 7
months, and it survives for at
least 24 hours
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.
Art. 744. Donations of  Legal Impossibility of Double Donations
the same thing to  Although the provision seem to suggest that there can be a case of
two or more “double donations” to different donees with opposing interest, the
different donees same NOT legally possible in this jurisdiction
shall be governed  Being a mode of acquiring and transmitting ownership or other real
by the provisions rights, a donation once perfected would deny the valid execution of a
concerning the sale subsequent inconsistent donation (unless perhaps if the prior donation
of the same thing has provided a suspensive condition which still pends when the later
to two or more donation is made)
different persons.  The rule on double sales finds no relevance in an ordinary donation
where the law requires the donor to have ownership of the thing or
the real right he donates at the time of its perfection
Art. 745. The donee  a donation may not be accepted by a person who is not authorized to
must accept the do so, either by the donee or by law
donation  unauthorized acceptance may not even give rise to an unenforceable
personally, or contract; subject to ratification
through an  there remains an offer of donation which may be accepted by the
authorized person donee personally or through an authorized person with a special
with a special power for the purpose, or with a general and sufficient power, unless
power for the the offer (donation) was withdrawn or revoked prior to such
purpose, or with a acceptance
general and
sufficient power;
otherwise, the
donation shall be
void.
Art. 746. Acceptance
must be| made
PROPERTY VLG-2AA 11
during the lifetime
of the donor and of
the donee.
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.
Art. 748. The donation  Donation as a solemn contract requires form for purposes of validity
of a movable may  if the formalities required in Articles 748 and 749 are NOT followed the
be made orally or in donation shall be VOID
writing. ARTICLE 748 ARTICLE 749
An oral donation DONATION OF A MOVABLE DONATION OF AN
requires the PROPERTY IMMOVABLE PROPERTY
simultaneous  may be made either orally or in REQUISITES:
delivery of the writing 1. both the donation and the
thing or of the  if the value of the personal acceptance must be
document property does NOT exceed embodied in a public
representing the P5,000.00, the donation may instrument, although not
right donated. be made orally but there must necessarily embodied in a
If the value of the be a simultaneous delivery — single document
personal property absence simultaneous delivery, 2. the real property donated and
donated exceeds the donation is VOID the value of the charges
five thousand which the donee is required to
 if the value does not exceed
pesos, the donation
 and the acceptance P5,000 and the donation is satisfy must be specified in
shall be made in made in writing, the the deed of donation
writing, otherwise, acceptance may be made 3. if the acceptance is embodied
the donation shall either orally or in writing, in a separate public
be void. expressly or tacitly, and without document, the donor shall be
need of simultaneous delivery. notified thereof in an
authentic form and such step
shall be noted in both
instruments of donation and
acceptance
 If the value of the personal  All the foregoing requisites
property to be donated must be complied with,
exceeds P5,000.00, the law otherwise, the donation shall
mandates that both the be VOID
donation and the acceptance
must be in writing, otherwise,
the donation shall be VOID
 the formalities provided for in Articles 748 and 749 are applicable
only to donations inter vivos and not to transfer mortis causa
 Articles 748 and 749 apply only to simple and remuneratory
donations and find no application to onerous ones
Art. 749. In order that  Charges: the burdens mentioned in Article 726 inferior in value to the
the donation of an property donated
immovable may be  These charges are required to be specified in the deed of donation for
valid, it must be the purpose of determining the true amount of the donation—if the
made in a public value of the burdens or charges is at least equal or superior than that
document, of the value of the property donated, the donation is in reality a
specifying therein contract and governed by the law on contracts
the property  Requirement of Notification and Notation
donated and the o Title to immovable property does not pass from the donor to the
value | VLG-2AA
PROPERTY of the donee by virtue of a deed of donation until and unless it has been 12
charges which the accepted in a public instrument and the donor duly notified thereof
donee must satisfy.  It is well-settled that if the notification and notation are not
The acceptance may complied with, the donation is VOID.
be made in the  Registration Not Necessary For Validity of Donation
same deed of o It is enough, between the parties to a donation of an immovable
donation or in a
property, that the donation be made in a public instrument but, in
separate public order to bind third persons, the donation must be registered in the
document, but it
Registry of Property.
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.

CHAPTER 3
EFFECT OF DONATIONS AND LIMITATIONS THEREON
Art. 750. The donations  GR: A donor may donate all his property or part thereof.
may comprehend all  XPNs:
the present property 1. He cannot donate future property (ART 751)
of the donor, or part 2. He must reserve, in full ownership or in usufruct, sufficient
thereof, provided he means for the support of himself, and of all relatives who, at the
reserves, in full time of the acceptance of the donation, are by law entitled to be
ownership or in supported by him (ART752)
usufruct, sufficient 3. He cannot give by donation more than he can give by will.
means for the DONATION SALE
support of himself, Donations CANNOT comprehend There can be a sale of future
and of all relatives future property goods provided, the seller be the
who, at the time of owner at the time of delivery
the acceptance of
the donation, are by  Article 751: “at the time of the donation” – the requirement
law entitled to be that the donor must be the owner of the property donated attaches
supported by the only at the time of the perfection of the donation and not prior
donor. Without such thereto
reservation, the  the donor may not be the owner of the property donated, so long as
donation shall be at the time the acceptance is conveyed — at which point the
reduced in petition donation is considered perfected — the requirement of the law (that
of any person the donor must be the owner of the property donated) is already
affected. complied with
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.
PROPERTY | VLG-2AA 13
Art. 752. The  Donation Must Not Be Inofficious
provisions of Article  A donor’s prerogative to make donations is further subject to the
750 limitation that he cannot give by donation more than he can give by
notwithstanding, no will, any excess shall be deemed INOFFICIOUS
person may give or  Inofficious donations are, therefore, those which prejudice the legitime of the
receive, by way of compulsory heirs.
donation, more than  Inofficious donations are NOT VOID although they may be subjected to a
he may give or corresponding reduction or revocation, as the case may be, if there is impairment of
receive by will. the legitime of the compulsory heirs of the donor.
The donation shall be
INOFFICIOUS in all
that it may exceed
this limitation.
Art. 753. When a  Donations Made to Several Donees Jointly
donation is made to  RULES:
several persons  The donees are entitled to equal portions
jointly, it is  If the donees are not husband and wife, there is no right of accretion among
understood to be in them, accretion taking place only when expressly provided for by the donor.
equal shares, and  If the donation is made to husband and wife jointly the rule is that there is a right
there shall be no
of accretion among them unless the donor provides for the contrary.
right of accretion
 If the donation is made to the spouses jointly in a regime of conjugal partnership
among them, unless
the donor has of gains, and with designation of determinate shares, their respective shares
otherwise provided. shall pertain to them as his or her own exclusive property.
The preceding  When is there right of accretion?
paragraph shall not 1. when expressly provided for by the donor
be applicable to 2. when the donees are husband and wife
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
Art. 754. The donee is  No Warranty Against Eviction
subrogated to all the  GR: the donor has no liability to the donee in case of eviction
rights and actions  XPS:
which in case of 1. when there is bad faith on the part of the donor, in which case he is also liable for
eviction would hidden defects
pertain to the donor. 2. when the donation is onerous, in which case the donor shall be liable up to the
The latter, on the amount equal to the burden
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.
Art. 755. The right to  Reservation of Power to Dispose
dispose of some of  Contemplates the situation where there are several properties
the things donated, donated by the donor and he reserved for himself the power to
or of some
PROPERTY amount
| VLG-2AA dispose of “some of the things donated, or of some amount” 14
which shall be a  reservation is valid and will not affect the character of the
charge thereon, may conveyance as donation inter vivos
be reserved by the  if the donor should die without having made use of this right, the
donor; but if he property or amount reserved shall belong to the donee
should die without  if there are several properties donated and the donor has reserved
having made use of the power to dispose of all of them—the donation is mortis causa,
this right, the therefore, subject to the rules governing testamentary provisions and
property or amount formalities of wills
reserved shall
belong to the donee.
Art. 756. The  Separate Donation of Ownership and Usufruct
ownership of  The donor may donate separately the ownership of the property to
property may also one person and the usufruct to another or others subject only to
be donated to one the condition that all the donees must be living at the time of the
person and the donation
usufruct to another
or others, provided
all the donees are
living at the time of
the donation
Art. 757. REVERSION  Donor May Provide for Reversion
may be validly  The donor may validly provide for the reversion or return of the
established in favor property donated to him for any case and circumstances.
of only the donor for  There can also be a reversion in favor of a third person provided
any case and that such person is living at the time of the donation
circumstances, but  If the third person is not living at the time of the donation, in
not in favor of other violation of the condition provided therein, only the provision for
persons unless they reversion is considered void without affecting the validity of the
are all living at the donation.
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.
Art. 758. When the PAYMENT OF DONOR’S DEBTS
donation imposes ARTICLE 758 ARTICLE 759
upon the donee the  When the donation imposes  absence of any stipulation
obligation to pay the upon the donee the obligation regarding the payment of the
debts of the donor, to pay the debts of the donor debts of the donor
if the clause does Rules: Rules:
not contain any 1. the donee is understood to 1. the donee shall be responsible
declaration to the be liable to pay only the only when the donation has
contrary, the former debts which appear to have been made in fraud of
is understood to be been previously contracted creditors
liable to pay only the 2. the liability of the donee is 2. liability of the donee should
debts which appear limited only to the value of be limited only to the value of
to have been the property donated the property donated
previously  donation is presumed to be in
contracted. In no fraud of creditors when at the
case shall the donee time of the donation the donor
be responsible for did not reserve sufficient
the debts exceeding property to pay his debts prior
the value of the to the donation
property donated,
unless a contrary
PROPERTY | VLG-2AA 15
intention clearly
appears.
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.

CHAPTER 4
REVOCATION AND REDUCTION OF DONATIONS

REVOCATION REDUCTION
Affects the entire Affects only a part or portion
donation thereof
 GR: once the donation is
accepted, it is generally considered irrevocable
 EXCEPTIONS: (grounds for revocation)
1. the subsequent appearance of children (art 760)
2. the non-fulfillment of charges imposed in the donation (art 765)
3. the ingratitude of the donee (art 765)
4. the fact that the donation is inofficious (art 752)
 grounds for reduction
1. that the donor did not reserve sufficient property for his own and his family’s support (art
750)
2. by the subsequent appearance of children (art 760)
3. that the donation is inofficious (art 752)

Art. 760. Every  Subsequent Appearance of Children

donation inter o the happening of any of these events [Art 760 (1-2)] shall only give
vivos, made by a rise to a cause or ground to revoke the donation
person having no o if the proper action for revocation is not instituted, or if it is
children or instituted but after the lapse of the statutory period of prescription
descendants, (Article 763), the donation will forever be considered valid
legitimate or o For any of these events to be considered as grounds for the
legitimated by revocation of a donation it is necessary, however, that the donor,
subsequent at the time of the donation, did not have, or at least he believed
marriage, or that he did not have, any children or descendants, whether
illegitimate, may legitimate, legitimated, illegitimate or adopted
be revoked or  Adoption of Minor Child
reduced as o the person “adopted” must be a minor child
provided in the o otherwise, if the “adopted” child is a person of legal age, the
next article, by the donation may be subjected to either reduction or revocation
happening of any pursuant to Article 752 not Article 760
of these events:
(1) If the donor, after
the donation,
PROPERTY | VLG-2AAhave
should 16
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
adopt a minor
child.
Art. 761. In the cases  Effect of Subsequent Appearance of Children
referred to in the  corresponding reduction or revocation of the donation in so far as it
preceding article, impairs the legitime of the child who subsequently appeared after the
the donation shall making of the donation
be revoked or  in the determination of the child’s legitime, it is the whole estate of the
reduced insofar as donor at the time of the appearance of the child (be it by subsequent
it exceeds the birth, re-appearance or adoption) that shall be taken into consideration
portion that may  if there is no impairment of the child’s legitime — or when the donation
be freely disposed does not exceed the free portion — then the donation shall not be
of by will, taking reduced nor revoked
into account the
whole estate of the
donor at the time
 of the birth,
appearance or
adoption of a child.
Art. 762. Upon the  Effects of Reduction or Revocation of Donation
revocation or  Upon the revocation or reduction of the donation based on
reduction of the Article 760, the following effects are produced:
donation by the 1. The property affected shall be returned, or if it cannot be returned,
birth, appearance at least its value;
or adoption of a 2. If the property is mortgaged –the donor may redeem the
child, the property mortgage, by paying the amount guaranteed, with a right to
affected shall be recover his payment from the donee.
returned or its When the property cannot be returned –it shall be estimated at
value if the donee what it was worth at the time of the donation.
has sold the same. 3. The donee shall return the fruits of property affected only from the
If the property is filing of the complaint.
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.
Art. 763. | The
PROPERTY action
VLG-2AA  Prescriptive Period of Action Based on Article 760 17
for revocation or  Action for revocation or reduction of donation under Article 760 is four
reduction on the years reckoned from:
grounds set forth o birth of the first child, or
in article 760 shall o from his legitimation, recognition or adoption, or
prescribe after four o from judicial declaration of filiation, or
years from the o from the time the information was received regarding the
birth of the first existence of the child believed to be dead
child, or from his  If the child dies prior to the filling of an action, the action can no longer
legitimation, be brought
recognition or
 The action is not subject to waiver or renunciation and is transmitted,
adoption, or from
upon the death of the donor, to his legitimate or illegitimate children
the judicial
and descendants, if the donor does within the four-year prescriptive
declaration of
period
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.
Art. 764. The  Revocation by Reason of Failure to Comply With Charges
 donation shall be  Conditions—obligations or charges imposed by the donor on the
revoked at the donee
instance of the  the donation being referred to in this article is an onerous one, and
donor, when the must be considered as an exception to the rule in Article 733 providing
donee fails to that onerous donations are governed by the rules on contracts
comply with any of  the four-year prescriptive period specifically provided for in Article 764
the conditions is to be considered as a special law compared to the general rules on
which the former prescription
imposed upon the  Effects of Revocation under Article 764
latter. 1. property donated shall be returned to the donor
In this case, the 2. Any alienation or encumbrance made by the donee with respect to
property donated the donated property shall be considered void, subject, however,
shall be returned to the rights of a buyer or mortgagee in good faith
to the donor, the 3. Donee shall return not only the property but also the fruits thereof
alienations made which he may have received after having failed to fulfill the
by the donee and condition
the mortgages  Prescriptive Period of Action Based under Article 764
imposed thereon  action for revocation based on Article 764 shall prescribe after four
by him being void, (4) years from the non-compliance with the condition
with the limitations
 such action is transmissible to the heirs of the donor and may be
established, with
exercised
regard to third
 against the heirs of the donee
persons, by the
Mortgage Law and  Article 764 Does Not Apply When Donation Expressly Provides
the Land For Automatic Reversion
Registration Laws.  prescriptive period in Article 764 does not apply when the deed of
This action shall donation expressly provides for automatic reversion of the
prescribe after four property donated
years from the  if automatic reversion is provided, a case a judicial declaration
noncompliance revoking the donation is not necessary
with the
PROPERTY condition,
| VLG-2AA 18
may be transmitted
to the heirs of the
donor, and may be
exercised against
the donee's heirs.
Art. 765. The  Revocation By Reason of Ingratitude
donation may also  action for revocation of the donation by reason of ingratitude may
be revoked at the not be renounced in advance (ART 769)
instance of the  the action prescribes within a period of one year counted from
donor, by reason of the time that the donor had knowledge of the fact and it was
ingratitude in the possible for him to bring the action (ART 769)
following cases:  when right is not transmissible:
(1) If the donee  if it was possible for the donor to bring the action but he did not
should commit institute the same, right to file is not transmissible to his heirs even
some offense if the donor dies before the expiration of the one-year period
against the person,  when right is transmissible to the heirs of the donor:
the honor or the
 if upon the death of the donor the one-year period has not yet
property of the
commenced to run because it was not possible for the donor to
donor, or of his
bring the action during his lifetime, the right to bring the same is
wife or children
transmitted to the heirs upon the donor’s death
under his parental
 if the donee dies, even before the expiration of the one-year period
authority;
prescribes, the action may not be filed against his heir/s
(2) If the donee
imputes to the  SEE 769-770
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.
Art. 766. Although  Validity of Alienations and Mortgages Effected by the Donee
the donation is Prior to the Notation of Complaint of Revocation
revoked on account  Only alienations and mortgages effected by the donee after the action
of ingratitude, for revocation was instated shall be void
nevertheless, the  Donors Right to Demand the Value of the Property Alienated
alienations and  If the donee cannot recover the property alienated from third
mortgages effected persons, the donor shall have the right to demand from the donee
before the notation the payment of the value of the property alienated at the time of
of the complaint the donation
for revocation in  The donor shall also have the right to the sum for which the
the Registry of property has been mortgaged by the donee
Property shall  Value of property shall be fixed as of the time of the donation
subsist.
Later ones shall be
void.
Art. 767. In the case
referred| VLG-2AA
PROPERTY to in the 19
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.
Art. 768. When the RETURN OF FRUITS
donation is GROUND Article 760 Non-COMPLIANCE with
revoked for any of S Inofficious Donations any of the conditions
the causes stated Ingratitude
in Article 760, or by
reason of
EFFECTS Donee shall NOT donee shall return the
ingratitude, or
return the fruits property AND the
when it is reduced
except from the filing fruits thereof which he
because it is
of the complaint may have received
inofficious, the
after having failed to
donee shall not
fulfill the condition
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.
Art. 769. The action SEE 765
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.
Art. 770. |This
PROPERTY action
VLG-2AA 20
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.
Art. 771. Donations  Revocation By Reason Inofficiousness (Art 752)
which in  donations which exceeds the freely disposable portion of the
accordance with donor’s estate and thus impairs the legitime of the compulsory
the provisions of heirs are inoffi cious and subject to reduction with regard to the
Article 752, are excess
inofficious, bearing  How to Determine Inofficiousness of Donations
in mind the 1. determination of the value of the property which remains at the
estimated net time of the testator’s death;
value of the 2. determination of the obligations, debts, and charges which have to
donor's property at be paid out or deducted from the value of the property thus left;
the time of his 3. the determination of the difference between the assets and the
 death, shall be liabilities, giving rise to the hereditary estate;
reduced with 4. the addition to the net value thus found, of the value, at the time
regard to the they were made, of donations subject to collation; and
excess; but this 5. the determination of the amount of the legitimes by getting from
reduction shall not the total thus found the portion that the law provides as the
prevent the legitime of each respective compulsory heir
donations from  Effect of Reduction or Revocation of Inofficious Donations
taking effect  Donation shall be reduced to the extent necessary to satisfy the
during the life of legitimes of compulsory heirs who were prejudiced by such
the donor, nor shall donation
it bar the donee  Status of Such Donation During Donor’s Lifetime
from appropriating  the mere fact that the donation turns out to be inofficious at the
the fruits. time of the donor’s death does not result in the automatic
For the reduction of revocation of the donation
donations the  not self-executory -- if no action for revocation is fi led, or if it is
provisions of this fi led after the lapse of the prescriptive period, the donation is
Chapter and of forever considered as valid.
Articles 911 and
912 of this Code
shall govern.
Art. 772. Only those  Who May Question Inofficiousness of Donations
who at the time of  Only those who at the time of the donor's death have a right to the
the donor's death legitime and their heirs and successors in interest
have a right to the  Renunciation of Right Cannot be Renounced by Compulsory
legitime and their Heirs
heirs and  During the lifetime of the donor, the compulsory heirs who are
successors in entitled to ask for the reduction or revocation of inofficious cannot
interest may ask renounce their right, whether the renunciation be done expressly
for the reduction or or impliedly
inofficious  Persons Who Are Not Entitled To The Legitime
donations.
PROPERTY | VLG-2AA  donees, devisees, legatees and creditors of the deceased donor 21
Those referred to in
 cannot ask for the reduction or revocation of inofficious donations
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.
Art. 773. If, there  If there are two or more donations and the disposable portion is
being two or more not sufficient to cover all of them, those of the more recent date
donations, the shall be suppressed or reduced with regard to the excess.
disposable portion  If they are of the same date, they shall be reduced
is not sufficient to proportionately.
cover all of them,
those of the more
recent date shall
be suppressed or
 reduced with
regard to the
excess.

PROPERTY | VLG-2AA 22