MODES OF ACQUIRING

OWNERSHIP
ART. 712-1155

PREPARED BY:

JD2A
ABANAG, Lyn Raye
TALANGKAY, Geraldine Jean
TOBIAS, Donabel

JD2B
ARIAGA, Kathlene
DONATO, Leah
OLAS, Sonny

JD2C
ANDRADA, Florian
ANTONIO, Bruce
ROSAL, Hannah Faith

SY: 2022-2023
 WHAT IS OWNERSHIP?

● Ownership is acquired by occupation and by intellectual creation.

● Ownership and other real rights over property are acquired and transmitted by
law, by donation, by testate and intestate succession, and in consequence of
certain contracts, by tradition.
● Ownership may also be acquired by means of prescription

There are three kinds of things, depending on the nature of their ownership:
a. res nullius (belonging to no one)
b. res communes (belonging to everyone)
c. res alicujus (belonging to someone)

Res Nullius
These things belong to no one, and the reason is that they have not yet been
appropriated, like fish still swimming in the ocean, or because they have been
abandoned (res derelictae) by the owner with the intention of no longer owning them.

Res Communes
While in particular no one owns common property, still in another sense, res
communes are really owned by everybody in that their use and enjoyment are given to
all of mankind.
Examples would be the air we breathe, the wind, sunlight, and starlight.

Res Alicujus
These are objects, tangible or intangible, which are owned privately, either in a
collective or individual capacity.

Examples: shares of stock, parcel of land.

Modes of Acquiring Ownership

A. Original modes of acquiring ownership

1. Occupation (condition of being without an owner)

2. Intellectual creation (creation, discovery or invention)

B. Derivative modes of acquiring ownership

1. Law (existence of required conditions)
2. Donation (contract of the parties)
3. Tradition (contract of the parties)
4. Prescription (possession in concept of owner)
5. Succession (death)
 Mode vs Title

1. Mode is the specific cause such as the condition of being res nullius is necessary
in order that a thing may be acquired by occupation; capacity and intent to
transfer ownership is required for tradition; and just title and adverse possession
for the time fixed by law, among others, for acquisition of ownership by
prescription.

2. Title is the juridical act, right, or condition which gives the means to their
acquisition, but which in itself is insufficient to produce them.

3. Mode and Title at the same time.

In case of succession, delivery is not essential for the transfer of ownership because
inheritance is transmitted automatically to the heirs through and upon the death of the
decedent.

Definition:
A mode of acquiring ownership by the seizure of things corporeal which have no
owner, with the intention of acquiring them, and according to the rules laid down by law.

Requisites:
1. There must be seizure of a thing.
2. The thing seized must be corporeal personal property.
3. The thing must be susceptible of appropriation by nature.
4. The thing must be without an owner.
5. There must be an intention to appropriate.

Some Property Acquirable by Occupation

1. Those without an owner (e.g., animals that are objects of hunting and fishing).
2. Hidden Treasure (Article 154)
3. Abandoned movables.
a. Expectation to recover is gone.
b. Intention to return has been given up by the owner.

Specific Instances:
1. hunting and fishing
2. finding of movables which do not have an owner
 3. finding of abandoned movables
4. finding of hidden treasure
5. catching of swarm of bees that has escaped from its owner,
6. under certain conditions
7. catching of domesticated
8. animals that have escaped from their owners, under certain conditions
9. catching of pigeons without fraud or artifice
10. transfer of fish to another breeding place without fraud or artifice

Art. 720. If the owner should appear in time, he shall be obliged to pay, as a reward to
the finder, one-tenth of the sum or of the price of the thing found.

Art. 714. Ownership of a piece of land cannot be acquired by occupation.

The reason is that when the land is without an owner, it pertains to the State.

- Original mode
- Intellectual property refers to creations of the mind: inventions, literary and artistic
works, and symbols, names, images, and designs, used in commerce.

Art. 721. By intellectual creation, the following persons acquire ownership:

(1) The author with regard to his literary, dramatic, historical, legal, philosophical,
scientific or other work;
(2) The composer, as to his musical composition;
(3) The painter, sculptor, or other artist, with respect to the product of his art;
(4) The scientist or technologist or any other person with regard to his discovery or
invention.

Intellectual Creation as a Mode

Intellectual creation is recognized in the Civil Code as a mode of acquiring ownership.
(Art. 712). “The State shall protect and secure the exclusive rights of gifted citizens to
their intellectual property and creations, particularly when beneficial to the people, for
such period as may be provided by law.’’ (Sec. 13, Art. XIV, The 1987 Constitution). Arts
and letters shall enjoy the patronage of the State. The State shall conserve, promote,
and popularize the nation’s historical and cultural heritage and resources, as well as
artistic creations. (Sec. 15, id.)
Historical Basis
The Constitution itself places a high value on intellectual property. But even before the
Constitution, we already had under Spain, the Law of Jan. 10, 1879, on Intellectual
Property, which was extended to the Philippines by the Royal Decree of May 5, 1887
and published in the Gaceta de Manila with the approval of the Governor-General, on
June 15, 1887, and it took effect in the Philippines six months after its promulgation or
publication. (Serrano Laktaw v. Paglinawan, 44 Phil. 855).

Art. 722. The author and the composer, mentioned in Nos. 1 and 2 of the preceding
article, shall have the ownership of their creations even before the publication of the
same. Once their works are published, their rights are governed by the Copyright laws.
The painter, sculptor or other artist shall have dominion over the product of his art even
before it is copyrighted. The scientist or technologist has the ownership of his discovery
or invention even before it is patented.

When Ownership Acquired

They acquire ownership over their works from the moment of their creation even before
the same are published, copyrighted, or patented.
The creator has absolute control over his work, and he may do anything with it as he
pleases including the right to share it with others
He also enjoys exclusive rights to its publication, but this exclusive right is limited only to
the first publication.
Once published, the work is dedicated to the public, and the author loses the exclusive
right to control subsequent publications by others.

Ownership Before Publication

Even before the author or composer has published the work, he is already the
owner of the creation. To protect his right, however, he must ask for a copyright if he
intends the work to be published. Unless the copyright is obtained, the ownership by
him will be lost. Mere circulation among close friends and associates, notwithstanding,
is not considered publication. (See Mansell v. Valley Printing Co., 15 Ann. Cos. 133).

Rule When Employees Write

If A employs B to write a poem for publication or other uses, A is considered the owner,
not B. This is not true however, when B is a mere general employee (not entrusted with
the task of making a poem), even if the poem was made during office hours. (See
Dielman v. White, 102 Fed. 892; Callaghan v. Myers, 128 U.S. 617; Beucicault v. Fox, 3
F. Case 1, p. 691).
Art. 723. Letters and other private communications in writing are owned by the person
to whom they are addressed and delivered, but they cannot be published or
disseminated without the consent of the writer or his heirs. However, the court may
authorize their publication or dissemination if the public good or the interest of justice so
requires.

Meaning of ‘Letter’
Distinction should be made between the letter (ideas, thoughts) and the letter (paper,
with words). The first in a way belongs to the sender; the second to the recipient. Thus,
the recipient may burn the letter, and cannot be compelled to return them to the sender.
The sender may publish the letter (when he has memorized its contents or kept a copy)
even without the recipient’s consent.

Rules
The recipient cannot publish or disseminate the letter:
(a) unless the writer or the writer’s heir’s consent;
(b) or unless the public good or the interest of justice so requires. (See Art. 723).

Art. 724. Special laws govern copyright and patent.

RA No. 8293 is the Special law governing patents and copyrights

Tradition is a derivative mode by virtue of which they are transmitted from the patrimony
of the grantor to that of the grantee by means of a just title, there being both the
intention and the capacity on the part of both parties.

Its requisites are:

1. Right to be transmitted should have previously existed in the patrimony of the grantor.
2. Transmission should be by virtue of a just title.
3. Grantor and grantee should have the intention and the necessary capacity to transmit
and to acquire.
4. Transmission should be manifested by some act which may be physical, symbolical
or legal.
Kinds of tradition:

1. Real is by delivery or transfer of a thing from hand to hand if it is movable, or by

certain material and possessory acts of the grantee performed in the presence and with
the consent of the grantor if it is immovable.

2. Constructive is by delivery of a movable or immovable thing by means of acts or

signs thereof. This delivery may take place in the following ways:

a. Traditio symbolica is by delivery of a symbol representing the thing which is

delivered, such as the key to a warehouse.
b. Traditio longa manu by the grantor pointing out to the grantee the thing which
is delivered which at the time must be within sight.
c. Traditio brevi manu is when the grantee is already in possession of the thing
under a title which is not of ownership, such as when the lessee purchases from
the lessor the object of the lease.
d. Traditio constitutum possessorium by the grantor alienates a thing belonging to
him, but continues in possession thereof under a different title, such as that of a
lessee, pledgee or depositary.

3. Quasi-tradicion is used to indicate the exercise of a right by the grantee with the
acquiescence of the grantor, such as delivery which may be made by the execution of a
public instrument with respect to incorporeal property. (See Art. 1501)

4. Tradicion por ministerio de la ley is delivery which takes place by operation of law,
such as by the registration of a deed of transfer of titled land which is also the operative
act in order to bind innocent persons in such deeds.

Succession as defined under Art. 774 of the New Civil Code is a mode of acquisition by
virtue of which the property, rights and obligations to the extent of the value of the
inheritance of a person are transmitted through his death to another or others either by
his will or by operation of law.
Kinds of Succession:

As to effectivity
a. succession inter vivos (example:donation)
b. succession mortis causa (this is succession in the specific sense meant in art
774)

As to whether a will exists or not

a. testamentary succession (there is a will)
b. intestate or legal succession (part of the property has been disposed of in a will)

Elements of Succession:
1. Decedent
2. Successors
a. Heirs- those who are called to the whole or aliquot portion of the
inheritance either by will or by operation of law

Kinds of heirs
i. Compulsory
- those who succeed by force of law to some portion of the
inheritance, in an amount predetermined by law, of which
they cannot be deprived by the testator, except by a valid
disinheritance
- known as LEGITIMATE
ii. Voluntary or Testamentary - those who are instituted by the
testator in his will, to succeed to the portion of the inheritance of
which the testator can freely dispose.
iii. a. Legal or Ditestate - those who succeed to the estate of the
decedent who dies without a valid will, or to the portion of such
estate not disposed of by will.

b. Devisees or Legatees- persons to whom gifts of real or personal property

are respectively given by virtue of will.

3. Death of the Person

4. Inheritance - is the subject matter of Succession. It Includes: property and the
transmissible rights and obligations existing at the time of his death AND those
which have accrued thereto since the opening of succession.
SUCCESSION VS INHERITANCE

SUCCESSION INHERITANCE

Refers to the legal mode by which Refers to the universality or entirety of the
inheritance is transmitted to the persons property, rights and obligations of a
entitled to it. person who died.

WILLS
It is an act whereby a person is permitted, with the formalities prescribed by law, to
control to a certain degree the disposition of his estate to take effect after death.

Characteristics of a Will:
1. Unilateral
2. Strictly personal act
3. Free and voluntary act
4. Formal and solemn act
5. Act mortis cause
6. Ambulatory and revocable during the testator’s lifetime
7. Individual act

TESTAMENTARY CAPACITY- refers to the ability as well as the power to make a will
1. All persons who are not expressly prohibited by law
2. 18 years old and above
3. Of sound mind, at the time of execution

INSTITUTION OF HEIR
Is an act by virtue of which a testator designates in his will the person or persons who
are to succeed him in his property and transmissible rights and obligations. (Art 840)

The distinct modes or cases where the law, independent of other modes, directly vests
ownership of a thing in a person once the prescribed conditions or requisites are
present or complied with. In law, independently of the other modes, automatically and
directly vests the ownership of the thing in a certain individual once the prescribed
requisites or conditions are present or complied with.
 1. Accession
2. Fruits naturally falling into an adjacent land (Art.681 CC)
3. Easement

CC Art.624 “The existence of an apparent sign of easement between two

estates, established or maintained by the owner of both, shall be considered, should
either of them be alienated, as a title in order that the easement may continue actively
and passively. . .”

4. Hidden Treasures
5. Operation of Law

CC Art.1434 When a person who is not the owner of a thing sells or alienates
and delivers it, and later the seller or grantor acquires title thereto, such title passes by
operation of law to the buyer or grantee.

Family Code Art. 120. The ownership of improvements, whether for utility or
adornment, made on the separate property of the spouses at the expense of the
partnership or through the acts or efforts of either or both spouses shall pertain to the
conjugal partnership, or to the original owner-spouse, subject to the following rules. . .

CC Art. 461. River beds which are abandoned through the natural change in the
course of the waters ipso facto belong to the owners whose lands are occupied by the
new course in proportion to the area lost. However, the owners of the lands adjoining
the old bed shall have the right to acquire the same by paying the value thereof, which
value shall not exceed the value of the area occupied by the new bed.

CC Art. 1456. If property is acquired through mistake or fraud, the person

obtaining it is, by force of law, considered a trustee of an implied trust for the benefit of
the person from whom the property comes.

6. Co-ownership

CC Art. 466. Whenever two movable things belonging to different owners are,
without bad faith, united in such a way that they form a single object, the owner of the
principal thing acquires the accessory, indemnifying the former owner thereof for its
value.
It is a means of acquiring ownership and other real rights or losing rights or actions to
enforce such rights through the lapse of time. Prescription, in general, is a mode of
acquiring (or losing) ownership and other real rights through the lapse of time in the
manner and under conditions laid down by law, namely, that the possession should be
in the concept of an owner, public, peaceful, uninterrupted and adverse. 

Kinds of prescription:

1. Acquisitive Prescription

It is when one acquires ownership and other real rights through the lapse of time in the
manner and under the conditions laid down by law.

a. Ordinary acquisitive prescription - requires possession of things in good

faith and with just title for the time fixed by law.
b. Extraordinary acquisitive prescription - acquisition of ownership and other
real rights without need of title or of good faith or any other condition.

● Ordinary acquisitive prescription requires possession in good faith and

with just title for 10 years. 
● Without good faith and just title, acquisitive prescription can only be
extraordinary in character which requires uninterrupted adverse
possession for 30 years. (Heirs of Maningding v. CA, 342 Phil. 567
(1979)).
Thus, for an ordinary acquisitive prescription to set in, possession must be for at least
10 years, in good faith and with just title. Possession is “in good faith” when there is a
reasonable belief that the person from whom the thing is received has been the owner
thereof and could thereby transmit his ownership. (Art. 1127, NCC). There is “just title”
when the adverse claimant comes into possession of the property through any of the
modes recognized by law for the acquisition of ownership or other real rights, but the
grantor is neither the owner nor in a position to transmit the right. (Art. 1129, NCC).

Requisites of acquisitive prescription:

1. Capacity to acquire by prescription;

2. The thing is capable of acquisition by prescription;
3. Possession of the thing under certain conditions; and
4. Lapse of time
 2. Extinctive Prescription

Rights and actions are lost through the lapse of time in the manner and under the
conditions laid down by law.

Objects of prescription

A. Those that can be acquired by prescription are:

1. All things within the commerce of men.
2. Patrimonial property of the State as they are treated the same as property of
private individuals.

A.1 Those whom prescription runs against:

a. Minors and incapacitated persons who have parents guardians or other

legal representatives;
b. Absentees who have administrators either appointed by them before their
appearance or appointed by the courts;
c. Persons living abroad who have managers or administrators;
d. Judicial persons, including the state but only with regard to patrimonial
property;
e. A married woman; or
f. A co-owner, against the other co-owners as to the common thing, under
the manner and conditions laid down by law.

B. Those that cannot be acquired by prescription are;

1. Property of public dominion and common things.

2. Land registered under the Torrens system.
3. Properties of spouses, parents and children, guardians and wards under
certain conditions as between themselves.
4. Movables processed through a crime.

B.1 Those whom prescription does not run against:

a. Minors in under incapacitated persons who do not have parents,

guardians or other legal representatives
 b. absentees who do not have administrators either appointed by them
before their appearance or appointed by the courts
c. Persons living abroad who do not have managers or administrators
d. The state and its subdivisions or those properties that are of public
dominion
e. between husband and wife during the marriage even though there be a
separation of property agreed upon in the marriage settlements or by
judicial decree
f. Between parents and children during the minority or insanity of the latter
g. Between guardian and ward during the continuance of the guardianship
h. In favor of a co-owner or co-heir against his co-owners or co-heirs as long
as the co-ownership is recognized

Characteristics of Possession to be the Basis of Prescription

1. Concept of owner - where the property was in the adverse, continuous and
notorious possession.

Acts of possessory character which are merely tolerated by the possessor or

which are due to his license do not constitute possession.

a. License - positive act of the owner in favor of the holder of the thing
b. Tolerance - passive acquiescence of the owner to act being performed by
another which appeared to be contrary to the rights of the former

Tenants cannot acquire tenanted land by prescription, nor can an architect

creditor the land of his debtor.

2. Public - when acts of enjoyment are executed in such a manner as to be manifest

or visible to all especially to the person against whom the possession is being
adversely asserted. In order for possession to be public it must be known to the
owner of the thing.

3. Peaceful - it is acquired and maintained without any violence physical or moral

act unless such is done in instances of self-defense.

4. Uninterrupted - when the processor has never ceased to manifest with external
axis intention to exercise a right over the thing which presupposes that he has never
in foxes to exercise the right.
Interruption of the period of Prescription

A. Natural - when through any cause prescription should cease for more than 1
Year. After 1 year and the possession is reacquired, the prescription period is
reset. If less than 1 year, the period is merely suspended.

Cease – the possession of the thing was interrupted for 1 year = reset

B. Civil - produced by judicial summons or extrajudicial demand to the possessor

E.g. Filing of an action, Demand of a creditor to the debtor in possession

In case of civil interruption, possession is indeed in fact continuous and the

possession is recovered, the period is counted from the previous possession up
to the period of recovery which shall also include the period of interruption.

Period of Prescription

A. As to acquisitive period

The possessor is in good faith for 4 years of a movable; 10 years as to immovables.

B. As to extinctive period

The owner shall lose the right to recover the lost property after 8 years as to
movables; 30 years as to immovables.

Rules on Computation of Period

1. The present possessor may complete the period necessary for prescription by
taking his possession to that of his grantor or predecessor;
2. It is presumed that the present possessor who was also the possessor of the
previous time, has continued to be in possession during the intervening time,
unless there is proof to the contrary; and
3. The first day shall be excluded and the last day included.
Possession in good faith converted to bad faith

The prescription will be extraordinary but the possession in good faith shall be
computed in proportion that the period of extraordinary prescription bears to that of
ordinary prescription.

Sample

The possessor was in possession in good faith for 3 years, after which, he
learned of the owner of the thing in his possession (now in bad faith).

The 3 years will be computed as double, which is 6 years.

Actions Prescriptive Period

Foreclosure of mortgage 10 years

1. Upon an oral contract 10 years

2. Upon a quasi contract

1. Upon a written contract 6 years

2. Upon an obligation created by law
3. Upon a judgment

1. Upon an injury to the rights of the plaintiff

2. Revoke or reduce donation based on the birth, Within 4 years from
appearance, or adoption of a child the time the course of
3. Revoke donation based on non-compliance with a action accrues
condition
4. Annul a contract
5. Recission of contacts
 1. Forcible entry Within 4 years from
2. Defamation the time the course of
3. Recover possession de facto action accrues
4. Revoke a donation on the ground of ingratitude
5. Rescind or recover damages if immovable is sold
with non-apparent burden or servitude
6. Enforce warranty of solvency in assignment of
credits
7. Action for legal separation

All other actions whose periods are not fixed in the Code Within 5 years from
the time the course of
action accrues

It is an act of pure liberality whereby a person disposes a thing or right, gratuitously, in

favor of another. The civil code defines it as an act, but it is really a contract.

Valid donation requisites:

1. Donor must have capacity to make the donation at the time of the perfection of
the contract;
2. He must have donative intent (animus donandi);
3. There must be delivery;
4. Donee must accept or consent to the donation.

Other requisites:

1. Decrease or reduction of the patrimony of the donor.

2. Increase the patrimony of the donee.
3. Intent to make a donation. (Animus donandi)

In order that a person can make a donation, 3 requisites are necessary. They are:
 1. Capacity to enter into contracts.
2. Able to dispose of his property.
3. Not be prohibited or disqualified by law from making the donation.

In order that a person can accept a donation, only one requirement is necessary, that he
must not be prohibited or disqualified by law from accepting the donation.

Donor’s capacity shall be determined as of the time of the making of the donation. (Art.
737)

Essential Elements of True Donations (Inter Vivos)

a. Alienation of property by the donor during his lifetime, which is accepted

a. Irrevocability by the donor
b. Intention to benefit the done (animus donandi)
c. Consequent impoverishment of the donor (diminution of his assets)

Validity of a Donation

The donation remains valid even if the donor survives the donee; or the donor
becomes incapacitated after the perfection of the donation.

Classification/Kinds of Donation (Table Summary)

As to effectivity

a. Inter vivos
b. Mortis causa
c. Propter nuptias

As to perfection or extinguishment

a. pure
b. with a condition
c. with a term
 As to consideration

a. simple - gratuitous
b. remuneratory or compensatory – made on account of donee’s merits
c. modal – imposes upon the done a burden which is less than the value of the
thing donated

Kinds of donation

A. As to taking effect

1. Donation inter-vivos
a. Alienation by donor is done during his lifetime and acceptance of the
donee is the same;
b. Irrecoverability, except for legal causes;
c. Animus Donandi;
d. Results in the decrease of the assets or patrimony of the donor.

2. Donation mortis causa is governed by the law on succession.

3. Propter Nuptias

That made by reason of marriage and before its celebration, in consideration of

the same, and in favor of one or both of the future spouse

B. As to consideration

1. Pure or simple
That the cause of which is the pure liberality of the donor in consideration of
the donee’s merits. This is donation in its truest form;

2. Remuneratory or compensatory
That which is given out of gratitude on account of the services rendered by
the donee to the donor, provided they do not constitute a demandable debt;

3. Modal
That which imposes upon the donee a burden (e.g., services to be performed
in the future) less than the value of the gift; and

4. Onerous
 That the value of which is considered the equivalent of the consideration for
which it is given or that made for a valuable consideration and is thus
governed by the rules on obligations and contracts.

C. As to effectivity or extinguishment
(a) Pure or that which is not subject to any condition (uncertain event) or period
(term);
(b) Conditional or that which is subject to a condition, suspensive or resolutory;
and
(c) With a term or that which is subject to a period, suspensive or resolutory.

Forms of Donation:

1. Donation of a Movable

Donation may be made orally or in writing. If the amount of the movable exceeds
P5000.00, the donation and acceptance must be made in writing.

a. If made orally, simultaneous delivery is required for validity.

b. If made in writing, no simultaneous delivery is required.

2. Donation of an Immovable or a Real Right

It must be made in a public instrument.

a. If it is an immovable and the public instrument is void, the property may still
be acquired by prescription. Registration of the public instrument becomes
necessary when third persons are affected.
b. Real rights such as naked ownership, usufruct, servitude, etc., donation must
be made during the lifetime of the donee.

Perfection of donation

The donation is perfected from the moment the donor knows of the acceptance
by the donee.

Qualification of the donee

The donee need not be sui juris, with complete legal capacity to bind himself by
contract; as long as he is not specially disqualified by law, he may accept
donations.
Acceptance of donee

Movable - acceptance may be made orally or in writing.

Immovable - acceptance is either in the same public instrument or, in another

public instrument notifying the donor in authentic form, and noted in both deeds
(public instrument of donation and acceptance).

Effects of Donation:

1. When the donation is made to several persons jointly, it is understood to be in

equal portions, without accretion among them, unless the contrary is stipulated.
2. Donee may demand the delivery of the thing donated.
3. Donee is subrogated to all the rights and actions which in case of eviction would
pertain to the donor
4. donors warranty exists if:

Accretion is where a share of a donee goes to his co-donees when he dies

ahead of the donor before perfection, or who is incapacitated, or who repudiates
or refuses the donation.

GR: There is no accretion.

Xpn: When the donor provides otherwise

Donation with condition/s

1. Payment of the donor’s debt by the donee if there is express stipulation. The
donee is to pay only the debts contracted before the donation, if not otherwise
specified. He shall answer only for the depths up to the value of the property
donated unless the contrary is stipulated.
2. If there is no stipulation, the donee is answerable for the depths of the donor only
in case of fraud against creditors.

Fraud against creditors is presumed when the donation was made without
reserving sufficient property to pay debts.

If a Deed of Donation expressly provides for automatic reversion of the property

donated in case of violation of a condition therein, a judicial declaration revoking the
same is not necessary.
Conditional Donations

1. Suspensive condition which may take place beyond the natural expectation of
the life of the donor, does not destroy the nature of the act as a donation inter
vivos.
2. Donation subject to the resolutory condition of the donor’s survival is a donation
inter vivos. Automatic reversion will commence if said condition is met, unless
one of the parties contests or denies the reversion, the court with competent
jurisdiction will decide.

Prohibited/Void Donations

1. Donation between spouses during the marriage, including persons living together
as husband and wife without a valid marriage or in illicit relation, shall be void
except moderate gifts on the occasion of family rejoicing, or donations or
promises to common legitimate children exclusively for commencing or
completing a professional or vocational course or activity for self improvement.
2. Donation by Corporation to Political Party for purposes of the latter’s candidacy
or political activity. Corporations may donate if it be for the public welfare or for
hospital, charitable, cultural, scientific, civic, or similar purposes.
3. Guardians and trustees cannot alienate the property entrusted to them.
a. This prohibition is not absolute. It is applicable only in case of simple
donation but not where the donation is onerous and is beneficial to the
beneficiary.
b. Trustees who have repudiated the trust and have acquired the properties
by prescription are allowed to do need said properties

4. Minors and others who cannot enter into a contract unless they're acceptance
shall be done through their parents or legal representatives

5. Conceived and unborn children unless acceptance to which is made by those

persons who legally represent them if they were already born and that the
donation is favorable to the former.

6. Donations made by persons guilty of adultery or concubinage at the time of

donation.

7. Donations made between persons found guilty of the same criminal offence in
consideration thereof.
 8. Made to a public officer or his spouse, descendants and ascendants, in
consideration of his office.

9. Made 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.

10. Made to the relatives of such priest within the fourth civil degree or to the church
to which such priest belongs.

11. Made by a ward to the guardian before approval of accounts.

12. Made 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.

13. Made to a physician, surgeon, nurse, health officer, or druggist who took care of
the donor during his or her last illness.

14. Made by individuals, associations, or corporations not permitted by law to make

donations.

15. Donations void by reason of unworthiness of donee if the donor had

acknowledged or subsequently knew of their of unworthiness of donee and
condone the same in writing the donation is valid

Unworthiness of the donee

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.

Limitations of Donation

1. Donation may comprehend all the present property of the donor, provided that:
a. If the donor has forced heirs he cannot give or receive by donation more
than what he can give or receive by will
b. If the donor has no forced heirs, donation may include all present property
provided he reserves in full ownership or in usufruct:

i. The amount sufficient to support him and those relatives entitled

to support from him; or

ii. Property sufficient to pay the donor’s debt contracted prior to the
donation.

2. Donations cannot comprehend future property - future property is anything which

the donor cannot dispose of at the time of the donation.

3. Donation should not prejudice creditors.

4. The donee must reserve sufficient means for his support and for his relatives
which are entitled to be supported by him.

Grounds for Reduction of Donation

1. Birth, appearance, or adoption of a child; or

2. Failure of the donor to reserve sufficient mean for support of himself or a
dependent relative; or
3. Failure of the donor to reserve sufficient property to pay off his existing debts; or
4. Inofficiousness, that is, the donation exceeds that which the donor can give by
will.
PAYMENT OF DONOR’S DEBT BY THE DONEE

a. If there is express stipulation: the donee is to pay only debts contracted before
the donation, if not otherwise specified; but the donee answers only up to the
value of the property donated, if no stipulation is made to the contrary
b. If there is no stipulation: the donee is answerable for the debts of the donor only
in case of fraud against creditors.

ACTS OF INGRATITUDE

1. If the donee should commit some offense against the person, honor or property
of the donor, or of his wife or children under his parental authority

2. If the donee imputes to the donor any criminal offense, or any act involving moral
turpitude, even though he should prove it, unless the crime or act has been
committed against the donee himself, his wife or children under his authority

3. Refusal to support the donor