Donations

    DONATION

·         Characteristics:

a)     Unilateral – obligation imposed on the donor

b)    Consensual – perfected at time donor knows of acceptance

·         Requisites of Donation:

1.     Reduction in patrimony of donor

2.     Increase in patrimony of donee

3.     Intent to do act of liberality

4.     Donor must be owner of property donated

·         Requirements of a donation:

1. subject matter – anything of value; present property & not future, must not impair legitime    
2. causa – anything to support a consideration: generosity, charity, goodwill, past service, debt
3. capacity to donate & dispose & accept donation
4. form – depends on value of donation

·         Kinds of Donation according to Effectivity:

Donation Inter Vivos	Donation Mortis Causa
Disposition and acceptance to take effect during lifetime of donor and donee	Disposition happens upon the death of donor
Already pertains to the donee unless there is a contrary intent	Even if there is a term of effectivity and effectivity is upon the death of the donor, still entitled to fruits
Formalities required - follow law on donations and certain kinds of donations & law on obligations and contracts (suppletory)	Formalities required - follow law on succession to be valid, and donation must be in the form of a will
Irrevocable at the instance of the donor; may be revoked only by reasons provided by law	Revocable ad mutuum (exclusive will of donor)
Revoked only for reasons provided for by law (except onerous donations)

·         Acceptance

a)     acceptance must be made personally or thru agent

b)    donation may be made orally or in writing

Ø  movable:

5,000 & below – may be oral or written, if oral it must be with

                            simultaneous delivery of thing/document &

                            acceptance need not be in writing

above 5,000  -  must be written and accepted also in writing

Ø  immovable  -  must be in a public instrument & acceptance must also be in a public instrument (in same instrument or in other instrument)

·         In case of doubt with regards to nature of donation: inter vivos

·         Badges of mortis causa:

1. Title remains with donor (full or naked ownership)& conveyed only upon death
2. Donor can revoked ad mutuum
3. Transfer is void if transferor survives transfer

·         Kinds of donation INTER VIVOS

1)     pure/simple      

2)     remuneratory    

3)     conditional       

4)     onerous

Pure/Simple	Remuneratory	Conditional	Onerous
a) Consideration  Merits of donee	Liberality or merits of donee or burden/ charge of past services provided they do not constitute demandable debt	Valuable consideration is imposed but value is less than value of thing donated	Valuable consideration given
b) law to apply/ forms Law on donations	Law on donations	Extent of burden	Law on obligations imposed>oblicon excess>donation
c)  form of acceptance Required	Required	Required	Required
d) reservation w/regards to personal support & legitime Applicable	Applicable	Applicable	Not Applicable
e)  warranty against eviction & hidden defects In bad faith only	In bad faith only	In bad faith only	Applies
f)  revocation Applicable	Applicable	Applicable	Applicable

·         Who may give donations 

- All persons who may contract and dispose of their property

·         Who may accept donations:

1.  natural & juridical persons w/c are not especially disqualified by law

2.  minors & other incapacitated

            a)  by themselves         

-          if pure & simple donation

-          if it does not require written acceptance

b)  by guardian, legal representatives if needs written acceptance           

                  1.  natural guardian – not more than 50,000  

                  2.  court appointed  - more than 50,000

      3.  conceived & unborn child, represented by person who would have been              guardian if already born

·         Who are disqualified to donate:

1.  guardians & trustees with respect to property entrusted to them

2.  husband & wife

3.  between paramours/persons guilty of adultery

4.  between parties guilty of same criminal offense

5.  made to public officers, wife, descendant, ascendant

·         Other persons disqualified to receive donations:

1.     priest who heard confession of donor during his last illness

2.     relatives of priest within 4^th degree, church, order, community where priest belongs

3.     physician, nurse, etc. who took care of donor during his last illness

4.     individuals, corporations, associations not permitted

·         What may be given: 

Ø  All or part of donor’s present property provided he reserves sufficient means for the support of the ff:

a)     himself

b)    relatives who by law are entitled to his support

c)     legitimes shall not be impaired

Ø  when w/o reservation or if inofficious, may be reduced on petition of persons affected

Ø  except: conditional donation & donation mortis causa

Ø  except: future property

·         DOUBLE DONATIONS:

Ø  Rule: Priority in time, priority in right

1.  If movable – one who first take possession in good faith

2.  If immovable – one who recorded in registry of property in good faith

     -  no inscription, one who first took possession in good faith

     -  in absence thereof, one who can present oldest title

·         REVOCATION OF DONATIONS       

Ø  applies only to donation inter vivos

Ø  not applicable to onerous donations

·         With regards to donations made by person without children or descendants at time      of donation:

1.     If donor should have legitimate, legitimated or illegitimate children

2.     If child came out to be alive & not dead contrary to belief of donor

3.     If donor subsequently adopts a minor child

·         Action for revocation based on failure to comply with condition in case of conditional donations

·         Action for revocation by reason of ingratitude

1. Donee commits offense against person, honor, property of donor, spouse, children   under his parental authority
2. Donee imputes to donor any criminal offense or any cat involving moral turpitude even if he should prove it unless act/crime has been committed against donee himself, spouse or children under his parental authority
3. Donee unduly refuses to give support to donor when legally or morally bound to give support to donor

BIRTH OF CHILD	NON-FULFILLMENT OF CONDITION	INGRATITUDE
Ipso jure revocation, no need for action., court decision is merely declaratory	needs court action	needs court action
Extent: portion which may impair legitime of heirs	Extent: whole portion but court may rule partial revocation only	Extent: Whole portion returned
Property must be returned	Property in excess	Property to be returned

Alienation/mortgages done prior to recording in Register of Deeds:  If already sold or cannot be returned – the value must be returned If mortgaged – donor may redeem the mortgage with right to recover from donee	Alienations/mortgages imposed are void unless registered with Register of Deeds	Prior ones are void; demand value of property when alienated and can’t be recovered or redeemed from 3rd persons
Fruits to be returned at filing of action for revocation	Fruits to be returned at filing of complainant
Prescription of action is 4 years from birth, etc.	Prescription is 4 years from non-fulfilment	Prescription is 1 year from knowledge of fact and it was possible for him to bring action
Action cannot be renounced	Action cannot be renounced in advance
Right of action transmitted to heirs	Right of action at instance of donor but may be transmitted to heirs	Heirs can’t file action
Action extends to donee’s heirs	Action does not extend to donee’s heirs

·         Exception to rule on intransmissibility of action with regards to revocation due to ingratitude:

1. personal to the donor; general rule is heir cannot institute if donor did not institute
2. heirs can only file  in the ff cases:

a)     donor has instituted proceedings but dies before bringing civil action for revocation

b)    donor already instituted civil action but died, heirs can substitute

c)     donee killed donor or his ingratitude caused the death of the donor

d)    donor died w/o having known the ingratitude done

e)     criminal action filed but abated by death

3. can only make heirs of donee liable if complaint was already filed when donee died

·         Inofficious donations:

1.     shall be reduced with regards to the excess

2.     action to reduce to be filed by heirs who have right to legitimate at time of donation

3.     donees/creditors of deceased donor cannot ask for reduction of donation

4.     if there are 2 or more donation: recent ones shall be suppressed

5.     if 2 or more donation at same time – treated equally & reduction is pro rata but donor may impose preference which must be expressly stated in donation