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Requisites of a Valid Donation

Photo from Unsplash | Markus Winkler

The following post does not create a lawyer-client relationship between Alburo Alburo and Associates Law Offices (or any of its lawyers) and the reader. It is still best for you to engage the services of a lawyer or you may directly contact and consult Alburo Alburo and Associates Law Offices to address your specific legal concerns, if there is any.

Also, the matters contained in the following were written in accordance with the law, rules, and jurisprudence prevailing at the time of writing and posting, and do not include any future developments on the subject matter under discussion.

 


AT A GLANCE:

A donation is an act of liberality whereby a person disposes gratuitously of a thing or right in favor of another who accepts it. (Article 725, Civil Code)

Donation is a mode of acquiring ownership and other real rights over a property. (Article 712, Civil Code)

A donation is perfected from the moment the donor knows of the acceptance by the donee. (Article 734, Civil Code)


 

Article 725 of the Civil Code of the Philippines defines donation as an act of liberality whereby a person disposes gratuitously of a thing or right in favor of another who accepts it.

 

Donation is one of the modes of acquiring ownership and other real rights over a property. (Article 712, Civil Code)

 

As held in the case of Spouses Romulo v. Court of Appeals (G.R. No. 105944, February 9, 1996):

 

“A donation is an act of liberality whereby a person disposes gratuitously of a thing or right in favor of another, who accepts it. On the part of the donor, it is an exercise of one’s generosity.”

 

To be considered as valid, a donation must satisfy the following requisites:

 

  1. The donor must have the capacity to make the donation at the time of the perfection of the contract;
  2. There must be donative intent on the part of the donor;
  3. Delivery must be made; and
  4. The done must accept or consent to the donation.

 

First Requisite: Capacity to Make the Donation

 

In a donation, the donor must have both the capacity to contract and to dispose. The donor must not be specifically prohibited to make a donation.

 

The law says:

 

“All persons who may contract and dispose of their property may make a donation.” (Article 735, Civil Code)

 

Further, Article 739 provides that 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, descendants and ascendants, by reason of his office.

 

The donor’s capacity to make the donation shall be determined at the time of making the donation. The law says:

 

“The donor’s capacity shall be determined as of the time of the making the donation.” (Article 737)

 

Second Requisite: Donative Intent

 

Donative intent, or Animus donandi, refers to the intention to do an act of liberality, or the intent to benefit the donee.

 

Donative intent is said to be a creature of the mind since it cannot be perceived except by material and tangible acts which manifest its presence. Donative intent is presumed to be present when one gives a part of one’s patrimony to another without consideration. (Manuel Abello, et al. v. Commissioner of Internal Revenue, G.R. No. 120721, February 23, 2005)

 

Third Requisite: Delivery

 

Article 748 of the Civil Code provides that:

 

“The donation of movable may be made orally or in writing.

 

An oral donation requires 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 may be made in writing. Otherwise, the donation shall be void.

 

Fourth Requisite: Acceptance of the Donation

 

A donation is perfected from the moment the donor knows of the acceptance by the donee. (Article 734, Civil Code)

 

Jurisprudence says:

 

Title to immovable property does not pass from the donor to the done by virtue of a Deed of Donation until and unless it has been accepted in a public instrument and the donor duly notified thereof (Arangote v. Spouses Maglunob, G.R. No. 187906, February 18, 2009).

 

Further, jurisprudence provides:

 

There must be proof that a formal notice of such acceptance was received by the donor. If real property is involved, it must be noted in both the deed of donation and the separate instrument. (Lagazo v. Court of Appeals, G.R. No. 112796, March 5, 1998)

 

The acceptance may be made in the very same instrument of donation. If the acceptance does not appear in the same document, it must be made in another. Where the Deed of Donation fails to show the acceptance, or where the formal notice of the acceptance, made in a separate instrument, is either not given to the donor or else not noted in the Deed of Donation and in the separate acceptance, the donation is null and void. (Arangote v. Spouses Maglunob)

 

Related Articles:

What are the distinctions between a donation inter vivos and a donation mortis causa?

 

Alburo Alburo and Associates Law Offices specializes in business law and labor law consulting. For inquiries regarding taxation and taxpayer’s remedies, you may reach us at info@alburolaw.com, or dial us at (02)7745-4391/0917-5772207.

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