III C. Donation Flashcards
- Sy: Feature
Good to know
kw: act of pure liberality
Donation is an act of pure liberality whereby a person disposes gratuitously of a thing or right in favor of another who accepts it. (Art. 725, NCC)
SubSY: Requisites of Donation (A-C-I-D)
Good to know
kw: animus, capacity, inter vivos, delivery
- Donor must have Capacity to make the donation;
- He must have donative Intent (animus donandi);
- There must be Delivery in certain cases; and
- Donee must Accept or consent to the donation during the lifetime of the donor and of the donee in case of donation inter vivos (Art. 746, NCC); whereas in case of donation mortis causa, acceptance is made after donor’s death because they partake of a will. (Art.728, NCC) (De Leon, 2006)
Sy: Feature/ Essential Elements
Essential features or elements of a true donation:
[consent, form, acceptance, irrev, donandi, decrease]
- Consent, subject matter, cause (as in other contracts);
- The necessary form (including delivery in some cases);
- Consent or acceptance by donee during donor’s lifetime;
- Irrevocability (except for legal causes);
- Intent to benefit the donee (animus donandi); and
- Resultant decrease in the assets or patrimony of the donor. (Paras, 2008)
Sy: According to motive or cause:
a. Simple;
b. Remuneratory (first kind);
c. Remuneratory (second kind): Conditional or Modal donations; or
d. Onerous donations.
SY: As to perfection or extinguishment:
a. Pure;
b. With a condition; or
c. With a term.
Sy: According to effectivity:
a. Inter vivos; (Art. 729, NCC);
b. Mortis causa; (Art. 728, NCC); or
c. Propter nuptias. (Paras, 2008)
Sy: Kinds of donation according to motive or cause
a. Simple;
b. Remuneratory (first kind);
c. Remuneratory (second kind): Conditional or Modal donations; or
d. Onerous donations.
Purpose/ Form
Simple (2007 BAR)
P: Pure liberality
F: Same to that of forms in donations
Remuneratory (First kind) (2007 BAR
P: To reward past merits, services rendered by the donee to the donor provided the same do not constitute a demandable debt.
F: Same to that of forms in donations
Remuneratory (Second kind)
P: 1. Consideration for future services; or
2. Donor imposes certain conditions, limitations or charges upon the donee, whose value is inferior to the donation given.
F:
1. Onerous – Same form of that of contracts.
2. Gratuitous – Same form of that of donations.
Onerous
P: Imposes upon the donee a reciprocal obligation; Burdens, charges or services are equal or greater in value to that of the donation
F: Same as that of contracts.
Sy: Kinds of donation according to perfection or extinguishment (def)
- Pure donation – It is one which is not subject to any condition;
- Conditional – It is one wherein the donor imposes on the donee a condition dependent on the happening of a future event or past event unknown to the parties; (Arts. 730 and 731, NCC) and
- With a term – It is one wherein the donor imposes on the donee a condition dependent upon the happening of a future and certain event. (Art. 730, NCC)
IIIC.3 Distinctions Between Mortis Causa and Inter Vivos Donations
As to When it Takes Effect:
IV: During the lifetime of the donor, independently of his death
MC: Upon donor’s death
As to Cause or Consideration
IV: Donor’s pure generosity
MC: In contemplation of donor’s death without intention to dispose of the thing in case of survival
On Predecease
IV: Valid if donor survives the donee
MC: Void if donor survives
On Revocability
IV: Generally irrevocable except for grounds provided for by law
MC: Always revocable at any time and for any reason before the donor’s death
On Formalities
IV: Must comply with the formalities of donations
MC: Must comply with the formalities of a will.
On When Acceptance is Made
IV: Acceptance during donor’s lifetime
MC: After donor’s death
On When Property is Conveyed to the Donee
IV: Property completely conveyed to the donee
MC: Property retained by the donor while he is still alive
On Tax Payable
IV: Donor’s tax
MC: Estate Tax
FORMALITIES OF DONATION
- As regards movable property (1998, 2000, 2007 BAR)
a. With simultaneous delivery of property donated:
i. For P5,000.00 or less – May be oral/written
ii. For more than P5,000.00 – Written in public or private document
b. Without simultaneous delivery:
i. The donation and acceptance must be written in a public or private instrument (Statute of Frauds), regardless of value. Otherwise, donation is unenforceable.
- As regards immovable property (1993, 2000, 2010 BAR)
a. Must be in a public instrument specifying
i. The property donated; and
ii. The burdens assumed by the donee.
b. Acceptance may be made:
i. In the same instrument; or
ii. In another public instrument, notified to the donor in authentic form, and noted in both deeds. Otherwise, donation is void. (De Leon, 2006)
Rules regarding the liability of the donee to pay the debts of donor
good to know
- Where donor imposes obligation upon the donee, (Art. 758, NCC) the donee is liable:
a. To pay only debts previously contracted; and
b. For debts subsequently contracted only when there is an agreement to that effect.
NOTE: But he is not liable for debts in excess of the value of donation received, unless the contrary is intended.
- Where there is no stipulation regarding the payment of debts (Art. 759, NCC):
a. Donee is generally not liable to pay donor’s debts;
b. Donee is responsible only if donation has been made in fraud of creditors;and
NOTE: The presumption that the donations was made in fraud of creditors arises when the donor has not left sufficient assets to pay his debts, at the time of donation.
c. The donee shall not be liable beyond the value of donation received. (Paras, 2008)
Double Donations
There is double donation when the same thing has been donated to two or more persons. The rule on double sale under Art. 1544 of the NCC shall be applicable.
Rule: “First in time, stronger in right”
1. Movable property — preference in ownership is given to the person who first possessed it in good faith. (Art. 1544 (1), NCC).
2. Immovable property — Preference in ownership is given
a. to the first who registered his right in good faith in the Registry of Property.
b. if there was no registration, to the person who first possessed in good faith.
c. if there was no possession, to the person who presents the oldest title, provided that the title had been acquired in good faith. (Paras, 2008)
in case of an Excessive, Inofficious donation
L3 Read
- A donor may not donate more than what he can give by will. If he donates more than what he cannot give by will, the donation will become excessive and to insist on it, the legitime of the compulsory heirs will be impaired. Legitime is reserved for the compulsory heirs and the same cannot be impaired or disposed of by the testator;and
- The donee cannot receive by way of donation more than what he may receive by will. If the donee can receive by donation (devise or legacy) more than what the testator is allowed by law to give, the donation is inofficious and it may be suppressed totally or reduced as to its excess.
Remedy in case of donations executed in fraud of creditors
The creditors may rescind the donation to the extent of their credits. The action is known as accion pauliana. (Art. 1381, NCC)
NOTE: The law establishes a presumption when the donation is apparently in fraud of creditors, namely failure to reserve sufficient property (at time of donation) to pay previous debts. (Paras, 2008)
Donations prohibited by law (1990, 2000 BAR) (L-A-W-S-C-R-A-P-O-P)
Donations prohibited by law (1990, 2000 BAR) (L-A-W-S-C-R-A-P-O-P)
- By persons guilty of Adultery or concubinage at the time of donation;
- 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;
- Those made between persons found guilty of the same Criminal offense, in consideration thereof; (Art.739, NCC) NOTE: The phrase “found guilty of same offense” does NOT refer only to concubinage and adultery.
- Those made to a public Officer or his wife, descendants and ascendants, by reason of his office;
- Relative incapacity to succeed;
- By individuals, associations or corporations not permitted by Law to make donations Art. 1027, NCC);
- By a Ward to the guardian before the approval of accounts; (Art. 1027, NCC)
- By Spouses to each other during the marriage or to persons of whom the other spouse is a presumptive heir; (Art. 87, FC)
- To Relatives of such priest, etc. within the fourth degree, or to the church to which such priest belongs;
- To an Attesting witness to the execution of donation, if there is any, or to the spouse, parents or children or anyone claiming under them;
- To the Priest who heard the confession of the donor during the latter’s last illness, or the minister of the gospel who extended spiritual aid to him during the same period); or
- To a Physician, surgeon, nurse, health officer or druggist who took care of the donor during his/her last illness. (Art. 1027, NCC)
