Property Law
The acceptance or consent of the donee is required because no
Donation
Concept, Nature, and Effect of Donation
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.
Concept of donation
In its generic sense, the term donation includes all forms of
gratuitous dispositions. It is to be considered apart from:
(1) Donation mortis causa (728)
(2) Condonation or remission of debt (1270)
(3) Donation propter nuptias (Family Code)
The donation the article speaks of and which is governed by Title
III is the donation proper or the true (or real) donation. It is sometimes
simply referred to as “ordinary donation’’ as opposed to the other kinds
of donation.
Nature and Effect of Donation.
- it is really a contract (Art. 1305.), with all the essential requisites
(consent of both parties, subject matter and cause) of a contract.
- It falls under contracts of pure beneficence, the consideration
being the mere liberality of the benefactor. The legal provisions
on contracts suppletorily apply to donation. However, the Civil
Code considers donation not among the contracts that transfer
ownership but as a particular mode of acquiring and transmitting
ownership.
Heirs of Florencio v. Heirs De Leon
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 is made
aware of the acceptance by the donee, provided that the done 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 owner of the property,
except on account of officiousness, failure of the donee to comply
with the charge imposed on the donation, or ingratitude. The
effect of donation is to reduce the patrimony or asset of the donor
and to increase that of the donee. Hence, the giving of a
mortgage or any other security does not constitute a donation.
The acceptance, to be valid, must be made during the lifetime
of both the donor and the donee. It must be made in the same
deed or in a separate public document, and the donee's
acceptance must come to the knowledge of the donor.
Registration of the deed in the Office of the Register of Deeds
or in the Assessor's Office is not necessary for it to be considered
valid and official. However, the necessity of registration comes
into play only when the rights of third persons are affected.
Requisites of Donation
They are as follows:
(1) The donor must have capacity to make the donation of thing
or right;
(2) He must have the donative intent (animus donandi) or intent
to make the donation out of liberality to benefit the donee;
(3) There must be delivery, where actual or constructive, of the
thing or right donated; and
(4) The donee must accept or consent to the donation.
Donation of an immovable property – the law further requires that the
donation be made in a public document and that the
acceptance thereof be made in the same deed or in a
separate public instrument.
- in cases where the acceptance is made in a separate instrument,
it is mandated that the donor be notified thereof in an authentic
form, to be noted in both instruments
The subject matter of a donation may be a thing or right. A
person may be a donee although he is incapacitated to enter into a
contract if he is not specially disqualified by law to accept donation.
one can be obliged to receive a benefit against his will. It applies to all
kinds of donations because the law does not make any distinction.
Since a donation mortis causa takes effect only after the donor’s
death (infra.), it is only after the latter’s death that acceptance of the
donation may be made
Kinds of Donation
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.
It may be classified as follows:
(1) As to taking effect:
a. Inter vivos – which takes effect during the lifetime
of the donor;
b. Mortis causa – which takes effect upon the death
of the donor
c. Propter nuptias – made by reason of marriage
and before its celebration, on consideration of the
same, and in favor of one or both of the future
spouses.
(2) As to consideration:
a. Pure or simple – the cause of which is the pure
liberality of the donor in consideration of the
donee’s merits. This is donation in tis truest form;
b. Remuneratory or compensatory – that which is
given out of gratitude on account of the services
rendered by the donee to the donor, provided they
don’t constitute a demandable debt.
c. Modal – which imposes upon the donee a burden
less than the value of the gift.
d. Onerous – the value of which is considered the
equivalent of the consideration for which it is given
or that made for a valuable consideration and is
thus governed by the rules on obligations and
contracts.
(3) As to effectivity or extinguishment
a. Pure – not subject to any condition (uncertain
event) or period (terms);
b. Conditional – subject to a condition suspensive or
resolutory; and
c. With a term – subject to a period, suspensive or
resolutory.
(4) From the viewpoint of occasion:
a. ordinary donation
b. donation propter nuptias (in consideration of
marriage).
(5) From the viewpoint of object donated:
a. Corporeal property —
i. donations of real property
ii. donations of personal property
b. Incorporeal property — donations of alienable
rights.
Remuneratory Donation
The motivating cause is gratitude, acknowledgement of a favor, a
desire to repay for past services rendered by the donee to the donor;
hence, a donation given for future services cannot remuneratory.
(1) It is necessary that the past services to be repaid “do not
constitute a demandable debt’’; otherwise, the transfer
becomes a payment, not a donation and furthermore, the
value of the services must not be equivalent to that of the
donation for otherwise, the donation becomes onerous.
A debt is demandable when it can be legally demanded
or enforced by the donee against the donor who has thus an
obligation to pay it. But a debt that has been renounced is
not a demandable debt.
(2) A donation on made to one who saved the donor’s life or his
properties or took care of the donor while the latter was ill, or
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to a lawyer who renounced his fees for services rendered to would be deemed not imposed following the rule in
the donor, falls under this class of donation. testamentary disposition. The donation will be considered as
simple. – both are gratuitous
(3) While technically a gratuity is different from a donation, in
(2) When donation rendered void – if the donation is onerous (or
substance, they are the same. A gratuity is similar to a
modal, as to its onerous portion), the illegal or impossible
pension and is essentially a remunerative donation. Thus, it
condition will render it void. Being contractual in nature, the
was said that a “pension is a gratuity only when it is granted
rule applicable would be that found in Art. 1183.
for services previously rendered, and which at the time they
were rendered gave rise to no legal obligation.’’ Or stated in
another way, a “gratuity is a mere bounty given by the Distinctions between donations inter vivos and donations mortis
Government in consideration or recognition of meritorious causa.
services and springs from the appreciation and graciousness
Inter Vivos Mortis Causa
of the Government’’ or “something given freely, or without
recompense, a gift; something voluntarily given in return for Takes effect during the lifetime Takes effect upon the death of
a favor or service; a bounty, a tip.’’ of the donor the donor-testator
Modal donations. Made out of donor’s pure Made in contemplation of his
In a modal donation, a burden (which is necessarily future) less generosity death without the intention to
than the value of the gift is imposed upon the donee. If the burden is lose the thing or its free disposal
considered the equivalent of the thing or right given, then the donation in case of survival.
is an onerous one. The burden may consist in a real or personal Valid event if the donor should Void should the donor survive
charge which is capable of being valued in terms of money. survive the donee the donee
Examples of this kind of donation are: Must follow the formalities of Must follow the formalities for
(1) One made with the charge that the donee “defray the donation; otherwise it is void the validity of a Will for it is in
expenses of the subsistence and burial’’ of the donor and “if and cannot transfer ownership. reality a legacy or devise;
perchance anything should remain from the price of the land, otherwise it is void and cannot
the surplus of the said expenses is granted to him by me’’;1 transfer ownership.
(2) One made with the condition that the person accepting it on Must be accepted by the Being in the nature of a
behalf of the minor donees “should defray his [donor’s] donee during his lifetime testamentary disposition, can
lodging, food, clothing, and laundry, and fulfill the other only be accepted after the
obligations stated in the donation,’’ provided that the burden donor’s death.
is less than that of the donation;2
(3) One imposing upon the donee the obligation to give a life Cannot be revoked except for Always revocable at any time
pension (with a lesser value) to the donor or to a third grounds provided for by law and for any reason before the
person; donor’s death.
(4) A donation of a parcel of land to a municipal corporation to The right to dispose of the The right to dispose is retained
be used exclusively for some specified public purpose, such property is completely by the donor while he is still
as a public park or school site;3 and conveyed to the donee alive
(5) A donation of a parcel of land on the condition that the (although certain reservation as
donation shall be deemed revoked if the donee fails to build to possession and enjoyment,
a house and reside therein or establish a school within a for example may be made)
certain period of time.
Subject to Donor’s Tax Subject to Estate Tax

Donation with Mixed Features

A donation that has 2 or more natures (i.e., partly onerous
and partly simple)
A modal donation has a dual nature, i.e., it is partly onerous
and partly simple — the portion equivalent to the burden is onerous
and is governed by the rules on obligations and contracts including
those as to form, while the portion exceeding the value of the burden
imposed, is simple and must follow the form of donations.
Effects of Illegal or Impossible Condition
Art. 727. Illegal or impossible conditions in simple and
remuneratory donations shall be considered as not imposed.
Art. 727 is different from the rule in contracts where the presence of
impossible or illegal conditions renders the obligation itself VOID.
Conditions are illegal when they are contrary to law, morals, good
customs, public order or public policy, and impossible, when they, in
the nature of things, cannot exist or cannot be done. In the law of
contracts, the presence of such conditions annuls the obligation which
depends upon them. Hence, both the obligation and the condition are
void. The reason behind the law is that the obligor knows his obligation
cannot be fulfilled. He has, therefore, no intention to comply with his
obligation.
(1) When condition is not deemed imposed – the illegal or
impossible condition is a simple or remuneratory donation
1
Castillo v. Castillo, 23 Phil. 364 [1912]
2
Di Siock Jian v. Sy Lioc Suy, 43 Phil. 562 [1922].
3
City of Manila v. Rizal Park Co., 53 Phil. 515 [1929].
Designation given to donations not conclusive.
Whether a donation is inter vivos or mortis causa depends upon the
nature of the disposition made as reflected from the provisions
contained in the donation and the intention of the parties as
demonstrated by the circumstances attendant upon its execution.
(1) The designation of the donation as mortis causa (or inter
vivos) or a provision in the deed of donation to the effect that
the donation is “to take effect at the death of the donor,” and
similar statements are not controlling criteria. Such
statements are to be construed together with the rest of the
instrument in order to give effect to the real intent of the
transferor.
(2) The fact that the donation is given in consideration of love
and affection or past or future services is not an exclusive
characteristic of donations inter vivos because a transfer
mortis causa may be made also for those reasons.
(3) The fact that the donor reserved sufficient properties for his
maintenance in accordance with his standing in society, may
indicate his intention to part with the ownership of the
property donated.
In case of doubt, the conveyance should be deemed donation mortis
causa in order to avoid uncertainty as to the ownership of the property
subject to the deed. The legal principle enunciated in Art. 1378 is that
in case of doubt relative to a gratuitous contract, the construction must
be that entailing “the least transmission of right and interests.”
Donations to be delivered after the donor’s death.
A distinction must be made between the actual donation and the
execution thereof. That the donation is to have effect during the lifetime

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of the donor does not mean that the delivery of the property must be
made during his life.
Article 729, a crystallization of the doctrine announced in decided
cases, speaks of donations in praesenti which take effect during the
lifetime of the donor, but the property shall be delivered after the
donor’s death. Such donations are inter vivos although the subject
matter is not delivered at once, or the delivery is to be made post
mortem, which is a simple matter of form and does not change the
nature of the act.
The fruits shall belong to the donee from the time of acceptance
unless otherwise provided by the donor.
(1) Title to property is conveyed subject only to life estate of
donor. — “I also declare that it is the condition of the
donation that the donee cannot take possession of the
properties donated before the death of the donor x x x; that
the donee should cause to be held annually masses for the
repose of the donor’s soul, and that he should defray the
expenses for the donor’s funeral.’’
This is donation in praesenti and conveyed title to the
properties in dispute subject only to the life estate of the
donor.
(2) Possession and enjoyment of property to take effect only
after donor’s death. – In another case, it was provided in the
deed of donation, which was also styled as mortis causa,
that the donation was made in consideration of the services
rendered by the donee to the donor and of the donor’s
affection for the donee; that donor had reserved what was
necessary for his maintenance, and that the donation “ha de
producir efectos solamente por muerte de la donante.’’
It was ruled that the donation was inter vivos because
the stipulation that the donation would take effect only after
the donor’s death “simply meant that the possession and
enjoyment of the fruits of the properties donated should take
effect only after the donor’s death and not before.’’
Here, the donee is expressly prohibited to make any
disposition of any nature or for any purpose during the
donor’s lifetime.
(3) Property donated in consideration of love and affection to be
delivered only after donor’s death. — In one case, the deed
of donation provided that the same was made in
consideration of the affection and love of the donor for the
donee but that donation was “to take effect after the donor’s
death.”
The donation was held to be inter vivos because death was
not the consideration for the donation but rather the donor’s
love and affection for the donee. The stipulation that the
properties would be delivered only after the donor’s death
was regarded as a mere modality of the contract which did
not change its inter vivos character. The donor had stated in
the deed that he was donating, ceding and transferring the
donated properties to the donee.

Property Law