Acceptance if the donation is indispensable. Its absence (in an authentic form for immovables) make a donation null and void.

Note: The donation, following the theory of cognition (Article 1319, Civil Code), is perfected only upon the moment the donor knows of the acceptance by the donee."

FACTS:

Petitioner filed an action seeking to recover from defendant a parcel of land which the former claims to have acquired from his grandmother by donation. Respondent on the other hand, put up the defense that when the alleged donation was executed, he had already acquired the property by a Deed of Assignment (allegedly executed before the Deed of Donation to Plaintiff) from a transferee (the former agent) of petitioner’s grandmother. Defendant also claims that petitioner failed to accept the donation whether in the same deed of donation or in a separate instrument rendering the donation null and void. Petitioner defends that the donation in any case was onerous as he wsd the one who paid the land’s amortization.

ISSUE: Whether or not the donation is simple or onerous.

RULING:

A simple or pure donation is one whose cause is pure liberality (no strings attached), while an onerous donation is one which is subject to burdens, charges or future services equal to or more in value than the thing donated. Article 733 of the Civil Code, donations with an onerous cause shall be governed by the rules on contracts; hence, the formalities required for a valid simple donation are not applicable.
We rule that the donation was simple, not onerous. Even conceding that petitioner's full payment of the purchase price of the lot might have been a burden to him, such payment was not however imposed by the donor as a condition for the donation. Rather, the deed explicitly stated:

That...the DONOR hereby voluntarily and freely gives, by way of donation unto said DONEE...the above described real property, together with all the buildings and improvements found therein, free from all lines [sic] and encumbrances and charges whatsoever;

The payments even seem to have been made pursuant to the power of attorney executed by Catalina Reyes in favor of petitioner, her grandson, authorizing him to execute acts necessary for the fulfillment of her obligations.

As a pure or simple donation, the following provisions of the Civil Code are applicable:
Art. 734. The donation is perfected from the moment the donor knows of the acceptance by the donee.
Art. 746. Acceptance must be made during the lifetime of the donor and the donee.
Art. 749. In order that the donation of an immovable may be valid, it must be made in a public instrument, 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 and 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 authentic form, and this step shall be noted in both instruments.

The donation, following the theory of cognition (Article 1319, Civil Code), is perfected only upon the moment the donor knows of the acceptance by the donee."

LAGAZO V. CABANLIT- Pure Donation, Onerous Donation