QUIJADA VS. CA- Resolutory Condition in Donations

When a person donates land to another on a condition. The condition imposed is not a condition precedent or a suspensive condition but a resolutory one.

FACTS:

Petitioners are the children of the late Trinidad Quijada. Trinidad and her siblings executed a deed of donation of a two-hectare lot in favor of the Municipality of Talacogon (Agusan del Sur), exclusively for the purpose of constructing the proposed provincial high school. However, possession remained with Trinidad. She subsequently sold the two hectares on two separate occasions to Regalado Mondejar, who sold it to different persons. Eventually, the Municipality, failing to construct the high school, reverted ownership to the donors. Petitioners filed an action for quieting of title and recovery of possession and ownership. RTC ruled in favor of petitioners, but CA reversed.

ISSUE:

Whether the deed of donation had a suspensive condition or a resolutory condition

Whether the sale was valid

RULING:

When the donation was accepted, the ownership was transferred to the school, only subject to a condition that a school must be constructed over the lot. Since ownership was transferred, and failure to fulfill the condition reverts the ownership back to the donor, it is a resolutory condition.

(Not really a discussion in Property) When Trinidad sold the parcels of land to Mondejar, she was not the owner of the land. Petitioners also did not sleep on their rights to recover the possession and ownership over the property since they immediately filed the action when the municipality passed the resolution, reverting the ownership of land to the donors. However, a sale being a consensual contract, it can be perfected upon meeting of the minds, and completing the three essential elements of a valid contract of sale. Even when Trinidad was not the owner when the sale was perfected, tradition through delivery is only important upon the consummation stage. Such transfer of ownership through actual or constructive delivery only happened when the lands reverted back to petitioners. Art 1434 is applicable, stating that seller's "title passes by operation if law to the buyer," and therefore making the sale valid. The donated lots cannot be considered outside the commerce of man, since nowhere in the law states that properties owned by municipality would be as such.