DONATION

NATURE OF DONATIONS

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. (618a)

DONATION AS AN ACT AND AS A CONTRACT

> Although the article says it is an act, it cannot be denied that a donation is really a contract
> It itself is a mode of acquiring ownership and doesn’t ordinarily require delivery before ownership may be transferred

ESSENTIAL CHARACTERISTICS OF A TRUE DONATION INTER VIVOS

1. The necessary form
2. Consent or acceptance by donee during donor’s lifetime
3. Irrevocability
4. Intent to benefit the donee
5. Resultant decrease in the assets or patrimony of donor

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. (619)

CLASSIFICATION OF DONATIONS

1. From viewpoint of motive, purpose or cause
     a. Simple—the cause is pure liberality
     b. Renumeratory—due to past services rendered or future services or charges and burdens
     c. Onerous—burdens and charges equal to the value of the thing donated
     d. Modal—consideration is less than the value of the thing donated
2. Time of taking effect
     a. Inter vivos
     b. Mortis causa

Art. 727. Illegal or impossible conditions in simple and remuneratory donations shall be considered as not imposed. (n)

Art. 728. Donations which are to take effect upon the death of the donor partake of the nature of testamentary provisions, and shall be governed by the rules established in the Title on Succession. (620)

DONATIONS FROM THE VIEWPOINT OF EFFECTIVITY DISTINCTION BETWEEN DONATION INTER VIVOS AND MORTIS CAUSA

DONATION IN PRAESENTI TO BE DELIVERED IN FUTURO

> Considered as a donation inter vivos and all the characteristics referred to above are applicable to it in relation to a donation inter vivos

Art. 729. When the donor intends that the donation shall take effect during the lifetime of the donor, though the property shall not be delivered till after the donor's death, this shall be a donation inter vivos. The fruits of the property from the time of the acceptance of the donation, shall pertain to the donee, unless the donor provides otherwise. (n)

Art. 730. The fixing of an event or the imposition of a suspensive condition, which may take place beyond the natural expectation of life of the donor, does not destroy the nature of the act as a donation inter vivos, unless a contrary intention appears. (n)

SUSPENSIVE CONDITION WHICH MAY BE FULFILLED BEYOND THE LIFETIME OF THE DONOR

> Reason for the law—retroactive effect of the fulfillment of the suspensive condition

Art. 731. When a person donates something, subject to the resolutory condition of the donor's survival, there is a donation inter vivos. (n)

DONATION SUBJECT TO THE RESOLUTORY CONDITION OF THE DONOR’S SURVIVAL

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. (621)

SUPPLETORY EFFECT OF RULES ON CONTRACTS

Art. 733. Donations with an onerous cause shall be governed by the rules on contracts and remuneratory donations by the provisions of the present Title as regards that portion which exceeds the value of the burden imposed. (622)

Art. 734. The donation is perfected from the moment the donor knows of the acceptance by the donee. (623)

PERFECTION OF THE DONATION

> Donation is perfected not from the time of acceptance but from the time of knowledge of the donor that the donee has accepted

PERSONS WHO MAY GIVE OR RECEIVE A DONATION

Art. 735. All persons who may contract and dispose of their property may make a donation. (624)

WHO MAY DONATE; SIMULTANEOUS CAPACITIES

> It is not enough that a person be capacitated to contract, he must also have the capacity to dispose

Art. 736. Guardians and trustees cannot donate the property entrusted to them. (n)

REASON FOR THE RULE: they can only do acts of administration and not of ownership.

Art. 737. The donor's capacity shall be determined as of the time of the making of the donation. (n)

DETERMINATION OF CAPACITY

> Capacity of both donor and donee is determined at the time of perfection of the donation

Art. 738. All those who are not specially disqualified by law therefor may accept donations. (625)

WHEN IS A PERSON CONSIDERED SPECIALLY DISQUALIFIED BY LAW

> Specially disqualified doesn’t refer to those incapacitated to contract like minors and those of unsound mind but to people such as those mentioned in article 739, etc.

Art. 739. 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, descedants and ascendants, by reason of his office.
In the case referred to in No. 1, the action for declaration of nullity may be brought by the spouse of the donor or donee; and the guilt of the donor and donee may be proved by preponderance of evidence in the same action. (n)

DONATIONS THAT ARE VOID BECAUSE OF MORAL CONSIDERATIONS

1. The first kind—those made between persons who were guilty of adultery or concubinage at the time of the donation
     a. The adultery or concubinage need not be proved in a criminal action. The guilt may be proved by preponderance of evidence.
     b. If the donation was made after the adultery or concubinage, then it is valid except if the consideration thereof is the commission of the act
     c. If the perpetrators are merely sweethearts but don’t have any sexual intercourse with one another, then this prohibition is not applicable. Remember the elements of adultery and concubinage.
2. The second kind—those made between persons found guilty of the same criminal offense, in consideration thereof

     a. There must be a criminal conviction—mere preponderance of evidence showing guilt is not sufficient
     b. It doesn’t matter whether the donation was made before or after the commission of the offense
3. The third kind—those made to a public officer or his wife, descendants and ascendants by reason of his office
     a. Purpose—to prevent bribery

REASON WHY THE DONATION ARE VOID

> Void by reason of public policy

Art. 740. Incapacity to succeed by will shall be applicable to donations inter vivos. (n)

Art. 1027. The following are incapable of succeeding:
(1) 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;
(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 testamentary dispositions given by a ward in his favor before the final accounts of the guardianship have been approved, even if the testator should die after the approval thereof; nevertheless, any provision 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 attesting witness to the execution of a will, the spouse, parents, or children, or any one claiming under such witness, spouse, parents, or children;
(5) Any physician, surgeon, nurse, health officer or druggist who took care of the testator during his last illness;
(6) Individuals, associations and corporations not permitted by law to inherit. (745, 752, 753, 754a)

Art. 1032. The following are incapable of succeeding by reason of unworthiness:
(1) Parents who have abandoned their children or induced their daughters to lead a corrupt or immoral life, or attempted against their virtue;
(2) Any person who has been convicted of an attempt against the life of the testator, his or her spouse, descendants, or ascendants;
(3) Any person who has accused the testator of a crime for which the law prescribes imprisonment for six years or more, if the accusation has been found groundless;
(4) Any heir of full age who, having knowledge of the violent death of the testator, should fail to report it to an officer of the law within a month, unless the authorities have already taken action; this prohibition shall not apply to cases wherein, according to law, there is no obligation to make an accusation;
(5) Any person convicted of adultery or concubinage with the spouse of the testator;
(6) Any person who by fraud, violence, intimidation, or undue influence should cause the testator to make a will or to change one already made;
(7) Any person who by the same means prevents another from making a will, or from revoking one already made, or who supplants, conceals, or alters the latter's will;
(8) Any person who falsifies or forges a supposed will of the decedent. (756, 673, 674a)

Art. 741. Minors and others who cannot enter into a contract may become donees but acceptance shall be done through their parents or legal representatives. (626a)

MINORS MAY BE DONEES MAY MINORS ACCEPT BY THEMSELVES?

It depends.
1. If the donation is simple—yes because after all is for the benefit of the child. The exception is when a written acceptance is required. In this case, the parents or legal representative must intervene.
2. If the donation is onerous or conditional—because there is some burden is imposed on the child. The parent and the legal representative must intervene.

Art. 742. Donations made to conceived and unborn children may be accepted by those persons who would legally represent them if they were already born. (627)

REQUISITES FOR THE ARTICLE TO APPLY

1. The child be born alive later
2. Or that the child after being born alive, should live 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. (628)

DISGUISED DONATIONS TO INCAPACITATED PERSONS—MEANING OF “INCAPACITATED”

> Refers to those who are not allowed to become donees

Art. 744. Donations of the same thing to two or more different donees shall be governed by the provisions concerning the sale of the same thing to two or more different persons. (n)

DONATION OF THE SAME OBJECT TO TWO OR MORE DIFFERENT DONEES; CROSS-REFERENCE TO ARTICLE 1544

Art. 745. The donee must accept the donation personally, or through an authorized person with a special power for the purpose, or with a general and sufficient power; otherwise, the donation shall be void. (630)

FORMALITIES FOR ACCEPTANCE

> The formalities for acceptance if any must also be present, otherwise the donation is void

THRU WHOM ACCEPTANCE MAY BE MADE

> This article speaks of two kinds of authorized persons—one with special power and another, one with a general and sufficient power

Art. 746. Acceptance must be made during the lifetime of the donor and of the donee. (n)

APPLICABILITY OF THE ARTICLE ON WHEN ACCEPTANCE IS TO BE MADE

> The rule enunciated herein is applicable to donations inter vivos as well as donations which are onerous
> In the case of onerous donations, without unconditional acceptance, there will be no meeting of minds and thus, no perfection of contract

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. (631)

ADDITIONAL DUTY OF THOSE WHO ACCEPT FOR OTHERS

1. It is understood that the persons referred to here are duly authorized to do the acceptance
2. Notification and notation in the proper cases, are essential for the perfection of the donation

Art. 748. The donation of a movable may be made orally or in writing. An oral donation requires the simultaneous delivery of the thing or of the document representing the right donated. If the value of the personal property donated exceeds five thousand pesos, the donation and the acceptance shall be made in writing, otherwise, the donation shall be void. (632a)

Art. 749. In order that the donation of an immovable may be valid, it must be made in a public document, specifying therein the property donated and the value of the charges which the donee must satisfy. The acceptance may be made in the same deed of donation or in a separate public document, but it 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. (633)
*CONSTANCIA AUTHENTICA