CHAPTER 3 – EFFECTS OF DONATION it's proven that the transfer was made with the

AND LIMITATIONS THEREON intent to defraud creditors, the court may order
the transaction to be annulled or reversed.
ARTICLE 750. The donation may
comprehend all the present property of the Effect of failure to make the reservation required
donor, or part thereof, provided he reserves, under Article 750 on the donation
in full ownership or in usufruct, sufficient § A donation where the donor did not reserve
means for the support of himself, and of all property or assets for himself in full ownership
relatives who, at the time of the acceptance or in usufruct sufficient for his support and all
of the donation, are by law entitled to be relatives legally dependent upon him, is not
supported by the donor. Without such
void. It is merely reducible to the extent that the
reservation, the donation shall be reduced on
support to himself and his relatives is impaired
petition of any person affected.
or prejudiced.

What is present property? Why is there a need to make a reservation?

§ The donation may cover all present property of § The claims of the family of the donor should not
the donor. be disregarded.
§ Present property as distinguished from future § The donor, who may be the head of a big family
property (Art. 751) refers to property of the should reserve sufficient amount of property or
donor which he could dispose of at the time of assets for his own support and that of his
the donation. dependents.
§ EXAMPLE:
Zee owns a piece of real estate, a house, and
decides to donate it to her friend Gigi. At the ARTICLE 751. Donations cannot
time of the donation, Zee is the legal owner of comprehend future property. By future
the house, and she has the authority to transfer property is understood anything which the
ownership to Gigi. In this case, the house is donor cannot dispose of at the time of the
considered present property because it is an asset donation.
that Zee currently possesses and can
immediately donate.
What is a future property? May it be the subject
of a donation?
What are the donations not covered by Art. 750?
§ Any property which the donor could not dispose
1) Donations mortis causa
of at the time of the donation is future property.
- Because hese donations take effect only upon
§ And the reason why said property could not be
the death of the donor.
disposed of, is because the donor is not yet the
- The law on succession applies.
owner of said property.
- There could be no reservation involved, as
§ A person cannot give what he does not own.
the heirs are already entitled to their
§ A donation of a future property is void.
legitimes.
2) Donation propter nuptias
Future "Property" Distinguished from Future
- Because they are not reducible.
"Inheritance."
- They can, however, be revoked on specific
§ Future inheritance is future property, but not all
grounds provided in the law (Article 86,
future property is future inheritance.
Family Code).
§ Future inheritance like future property cannot be
3) Onerous donations
disposed of by donation.
- Because they are governed by the rules on
o However, accrued inheritance, even if not
contract.
yet delivered, may be alienated by the heir
because hereditary rights are transmitted
What is Accion Pauliana?
from the moment of death of the decedent.
§ Donations in fraud of creditors.
§ If the donor did not reserve enough assets to pay
Exception to the Rule That Future Property
his creditors whom he owed before the donation,
Cannot Be Donated
the donation is presumed to be in fraud of
§ The exception involves marriage settlements of
creditors (See Articles 759).
prospective spouses wherein they are allowed to
§ The creditors may rescind the donation to the
donate properties to each other to the extent
extent of their credits (Art. 1387).
permitted by law. (See Article 84)
§ EXAMPLE:
B owes money to Zee. In an attempt to avoid
paying the debt, B donates her valuable property
to her friend Gigi for a very low price. Zee, the ARTICLE 752. The provisions of article 550
notwithstanding, no person may give or
creditor, can initiate an accion pauliana to
challenge the transaction between B and Gigi. If
 receive, by way of donation, more than he or incorporated to that of his co-heirs, co-
may give or receive by will. devises, or co- legatees. (Art. 1015)
The donation shall be inofficious in all that it
may exceed this limitation. Is it applicable to a donation where there are
joint donees? NO
§ When two or more persons are made joint
The Two Restrictive Acts donees, they will share equally if the donation is
1) A donor may not donate more than what he can perfected.
give by will; § By and among them, there shall be no accretion
o Reason: If he donates more than what he in case of predecease, incapacity or repudiation,
cannot give by will, the donation will unless the donor had expressly provided in the
become excessive and to insist on it, the deed of donation that there would be accretion.
legitimes of compulsory heirs will be
impaired. Legitimes are reserved for the Exception to the Law
compulsory heirs and the same cannot be § Excepted from the rule is the case of spouses
impaired or disposed of by the testator (Art. who are made joint donees. The rule is different.
886). § Between them, there is a right of accretion,
2) A donee cannot receive by way of donation more unless the donor has provided expressly that
than what he may receive by will there shall be no accretion.
o Reason: If the donee can receive by § The first and the second paragraphs of the law
donation (devise or legacy) more than what provide for opposite rules.
the testator is allowed by law to give, the
donation is inofficious and it may be Effect When There is Accretion
suppressed totally or reduced as to its § When accretion is proper, the share of the one
excess. who cannot receive the donation, will pertain to
his co-donee/s (Art. 1015).
§ Note: The limitation is on the donor or testator.
If the donor or testator gives more than the limit
prescribed by law, the donation may be totally ARTICLE 754. The donee is subrogated to
suppressed or reduced. The applicable all the rights and actions which in case of
provisions on reduction of donation are Articles eviction would pertain to the donor. The
911 and 912 of the Code. latter, on the other hand, is not obliged to
warrant the things donated, save when the
What is the effect of an inofficious donation? donation is onerous, in which case the donor
§ If a donation is inofficious or excessive, it will shall be liable for eviction to the concurrence
be set aside for impairing the legitimes of the of the burden.
compulsory heirs or for exceeding the free The donor shall also be liable for eviction or
portion (Liquez vs. Ngo Vda. de Lopez). hidden defects in case of bad faith on his
§ The law may allow compulsory heirs or other part.
interested parties to seek a reduction or
annulment of the inofficious donation if it goes
Eviction
against the legal provisions regarding legitimate
§ Eviction takes place when the donee is deprived
portions.
of the whole or part of the property donated.
§ Eviction has been defined also as "dispossession
by process of law"
ARTICLE 753. When a donation is made to
several persons jointly, it is understood to be
Subrogation of Donee to All Rights and Actions
in equal shares, and there shall be no right of
accretion among them, unless the donor has Pertaining to Donor, In Case of Eviction
otherwise provided. § In case the donee is evicted from the property
donated to him, the said donee assumes all the
The preceding paragraph shall not be rights and actions available to the donor.
applicable to donations made to the husband
§ He can file the necessary cases as if he is the
and wife jointly, between whom there shall
donor himself.
be a right of accretion, if the contrary has
not been provided by the donor.
ILLUSTRATION:
- Zee purchased a parcel of land from B not
Right of Accretion knowing that the title of B is defective. Zee
§ Accretion is a right by virtue of which, when two donated the property to Gigi who accepted the
or more persons are called to the same donation complying with all the formalities of
inheritance, devise or legacy, the part assigned to the law. Later, Gigi was evicted from the land by
the one who renounces or cannot receive his the true owner. Gigi may now sue B for the
share, or who died before the testator, is added
 breach of warranty because she is subrogated to the donees are living at the time of the
the rights and actions available to Zee. donation.
- B made an onerous donation of a parcel of land
to Gigi. The burden consists in the payment of
Meaning Of Naked Ownership, Usufruct And
only P100,000.00 by Gigi to B for the latter's
Full Ownership
donation of her land worth P1,000,000.00. It
§ Naked ownership is nothing more than full
turned out that the property actually belongs to
ownership over a property without its usufruct.
Zee. B was, however, in good faith. B is
§ Usufruct is full ownership over a property
responsible to Gigi only up to the amount of
without naked ownership.
P100,000.00 which is the value of the burden
o In other words, it is just the right to enjoy
imposed upon Gigi.
the property of another with the obligation
to preserve its form and substance unless
Effect When Donor is in Bad Faith
provided otherwise by law or in the title
§ When the donor acted in bad faith resulting in
constituting it (Art. 562).
the eviction of the donee, the latter may sue both
§ Full ownership is the concurrence of naked
the source of the property and the donor for
ownership and usufruct over a property.
recovery of damages suffered.
o In brief, the owner of the property who is in
§ If there is deceit and damage, a criminal case
possession thereof is enjoying all the
may also be pursued.
attributes of ownership specially the right
to its use and the right to enjoy the fruits
thereof.
ARTICLE 755. The right to dispose of some
of the things donated, or of some amount
May the ownership of a property and the
which shall be a charge thereon, may be
usufruct over the same property be donated to
reserved by the donor; but if he should die
without having made use of this right, the different persons?
property or amount reserved shall belong to § The donor may donate the naked ownership of a
the donee property to one person and the usufruct thereof
to another person or persons.
§ The first donee is the owner; the second donee/s
Reservations in Donations are enjoying the use and fruits of the property.
§ The donor may make certain reservations in the § But it is necessary that all the donees be living at
deed of donation. the time of the donation – which means at the
§ He is allowed to reserve the right to dispose of time the donor was notified of the acceptance of
some (not all) of the things donated. the donation (See Art. 749, third par.).
§ If the donees are no longer living at the time of
What is the effect of the donor’s failure to his the said notification of the donor, the donation
right to dispose a portion of the property or the shall not take effect.
amount donated in a deed of donation because of
his death?
ARTICLE 757. Reversion may be validly
ILLUSTRATION: established in favor of only the donor for any
- Gigi donated a house and lot to B with the case and circum-stances, but not in favor of
reservation that the furniture in the house may be other persons unless they are all living at the
alienated by Gigi within six (6) months. If the time of the donation.
period lapsed or if Gigi died without having
Any reversion stipulated by the donor in
exercised her right, the property shall belong to favor of a third person in violation of what is
the donee. There is no need for another deed of provided in the preceding paragraph shall be
donation. void, but shall not nullify the donation.
- B donated P1,000,000.00 to Zee which amount
is on time deposit. B made a reservation that she
may use the P100,000.00 thereof upon maturity The Rules on Reversion
of the time deposit for some personal purposes. § The property donated may be restored or
If B should die without having exercised her returned to the (a) donor, or his estate; or, (b) in
reserved right, all the money belongs to Zee, the favor of other persons who must be living at the
donee. time of the donation.
§ The reversion is a condition established in the
deed of donation which must be respected,
ARTICLE 756. The ownership of property unless the restrictions of the Article had been
may also be donated to one person and the violated. In which case, the donation shall
usufruct to another or others, provided all remain valid.
Discuss: Province of Camarines Sur v. Bodega the donor (Zee), the latter incurred another
Glassware, G.R. No. 194199 indebtedness in the sum of P15,000,000.00.
How much is the liability of Gigi?
ILLUSTRATION: o Answer: The liability of Gigi is limited to
- Gigi donated a property to B subject to the P5,000,000.00.
condition that after 5 years, the property donated o Reason: Gigi is not responsible for the new
shall revert to the donor. This is a valid provision indebtedness, there being no stipulation to
for reversion of the property to the donor herself. this effect in the donation.
- Zee donated a property to Gigi subject to the
condition that after 5 years, the property would
go to B and El who are third persons. However, ARTICLE 759. There being no stipulation
B and El were already dead at the time of the regarding the payment of debts, the done
donation. The reversion shall be void. But, the shall be responsible therefor only when the
donation to Gigi shall stay. donation has been made in fraud of
creditors.
Case. If the corresponding contract of donation The donation is always presumed to be in
expressly provides for automatic rescission and/or fraud of creditors, when at the time thereof
reversion in case of breach of the condition therein, the donor did not reserve sufficient property
and the donee violates or fails to comply with the to pay his debts prior to the donation.
condition, the donated property reverts back
automatically to the donor. Where the done denies
Responsibility of Donee for Payment of Debts of
the rescission or challenges the propriety thereof,
the Donor in the Absence of Any Stipulation
then only the final award of the court can
§ The Article is different from Art. 758 where
conclusively settle whether the resolution is proper
there is an express declaration for the donee to
or not. (Dolar vs. Barangay Lublub (Now P.D.
pay the indebtedness of the donor.
Monfort North), Municipality of Dumangas, 475
§ In the present Article, there is no stipulation.
SCRA 458).
§ The general rule is that the donee is not liable for
the debts of the donor.
§ Exception: When the donation was made in
ARTICLE 758. When the donation imposes fraud of creditors, i.e., where the donation is
upon the donee the obligation to pay the
designed to avoid paying them, the donee may
debts of the donor, if the clause does not
contain any declaration to the contrary, the be liable for damages.
former is understood to be liable to pay only
the debts which appear to have been When is a donation presumed to be in fraud of
previously contracted. In no case shall the creditors?
done be responsible for debts exceeding the § There is a presumption that the donation is in
value of the property donated, unless a fraud of creditors when the donor did not reserve
contrary intention clearly appears. sufficient property at the time of the donation for
the full settlement of his debts.
§ This presumption is, however, rebuttable which
Imposition Upon the Donee to Pay the Debt of
can be overcome by the donor or done by clear,
the Donor
strong and convincing evidence.
§ When the donor imposed the condition that the
donee shall pay the indebtedness of the former,
CHAPTER 4 – REVOCATION AND
the latter is liable only for debts which had been
REDUCTION OF DONATIONS
incurred prior to the time of the donation, unless
there is a contrary declaration in the donation.
§ Even if there is such a contrary declaration, the
liability of the done shall not exceed the value of ARTICLE 760. Every donation inter vivos,
the property donated, unless a contrary intention made by a person having no children or
descendants, legitimate or legitimated by
appears.
subsequent marriage, or illegitimate, may be
§ Hence, the general rule is subject to an
revoked or reduced as provided in the next
exception, and the exception is in turn subject to article, by the happening of any of these
a separate exception. events:
(1) If the donor, after the donation, should
ILLUSTRATION:
have legitimate or legitimated or illegitimate
- Zee made a donation inter vivos in favor of Gigi. children, even though they be posthumous;
The land is worth P10,000,000.00. The deed
contains a declaration that Gigi will pay for the (2) If the child of the donor, whom the latter
indebtedness of Zee in the sum of believed to be dead when he made the
donation, should turn out to be living;
P5.000,000.00. After the due acceptance of the
donation and notification of the acceptance to
(3) If the donor should subsequently adopt a remainder is what is known as "disposable free
minor child. portion."

Revocation or Reduction is Not Automatic

When may a donation inter vivos be revoked or
§ The revocation or reduction is authorized only if
reduced?
the amount or value of the property donated
exceeds the "disposable free portion" as
Coverage Of Article 760
understood in testamentary succession.
§ The law applies only to donations inter vivos as
§ To determine the "disposable free portion", the
clearly specified in the first sentence of the
whole estate of the donor (who is still living) at
Article.
the time of the birth, appearance, or adoption of
§ It cannot apply to donations mortis causa
a child should be considered.
because these donations are revocable at any
§ The computation will be done as if the donor is
time before the death of the donor for any cause
already dead.
or reason.
§ The presumptive legitimes of compulsory heirs
§ Neither can it apply to donations propter nuptias
are computed and determined following the
which could be revoked only by reasons stated
rules on legitimes, to arrive at the amount of the
in Art. 86 of the Family Code.
"disposable free portion" (See Article 908).
§ Onerous donations are also outside the coverage
§ If there is any "disposable free portion", the
of the Article because these donations being
value of the donation will be deducted
laden with burdens are governed by the law on
therefrom.
contracts.
§ If the donation does not exceed this disposable
§ The parties are bound by the terms and
free portion, it will not suffer any revocation or
conditions of the onerous donations and not by
deduction.
Art. 760.
ILLUSTRATION:
Causes for Revocation or Reduction of
Mr. X died leaving a will. He was survived by the
Donations
following compulsory heirs:
1) Birth of a donor's child (or children) after the
B, Gigi and Zee – who are legitimate children;
donation, even though born after his death. The
Y – surviving spouse; and,
child may be legitimate or illegitimate, or
El – illegitimate child.
legitimated. While the law is silent, it is
understood that the illegitimate child must be
During his lifetime, X made a donation of P1 M to
duly recognized.
a friend (Jun). At the time of his death, X had an
2) Appearance of a donor's child who is missing
obligation of P2,000,000.00 but left a deposit of
and thought to be dead by the donor. There must
P10,000,000.00 in the bank which constitutes his
be an honest belief that the child is dead.
estate.
3) Subsequent adoption of a minor child and not of
an adult. Under Art. 187 (a), Family Code, an
Computation Of The Net Estate:
adult may be adopted.? Judicial and not
a) P 10,000,000.00 – Deposit in the bank.
extrajudicial adoption is contemplated. It must
+ 1,000,000.00 – Donation to Jun
be noted, extrajudicial adoptions are void
P 11.000.000.00 – Gross assets.

b) P 11,000,000.00 – Total assets.

ARTICLE 761. In the cases referred to in the - 2,000.000.00 – Obligations which must be paid.
preceding article, the donation shall be P 9,000,000.00 – Net estate.
revoked or reduced insofar as it exceeds the
portion that may be freely disposed of by
Legitimes Of The Compulsory Heirs:
will, taking into account the whole estate of
the donor at the time of the birth, a) B, Gigi and Zee who are legitimate children will
appearance or adoption of a child. receive one-half of the net estate, that is,
P4,500,000.00. Each one will get
P1,500,000.00. The free portion is the other half
What is disposable free portion? in the amount of P4,500,000.00.
§ "Disposable free portion" is different from the b) Y, the surviving spouse will get a share
"free portion". equivalent to the share of one legitimate child,
§ It is the remainder of the "free portion" after the that is, P1.500,000.00 (Arts. 892 and 897).
legitimes of the surviving spouse and of the c) El, the illegitimate child will get a share
illegitimate children or child, if any, had been equivalent to one-half of the share of one
deducted. legitimate child, that is, P750,000.00 (Art. 176,
§ In other words, if the "free portion" is not totally Family Code).
exhausted and there remains some portions, the
Computation Of The Disposable Free Portion:
a) The total legitimes of the spouse and illegitimate of the property estimated at the time of the
child amount to P2,250,000.00 which will be perfection of the donation;
deducted from the free portion. 3) If the property had been mortgaged, the donor
b) The remainder of the free portion is may pay the mortgage obligations, subject to
P2,250,000.00. This is now called the reimbursement by the donee.
"disposable free portion

Collation Of The Donation: ARTICLE 763. The action for revocation or

The donation of P1,000,000.00 to Jun will be reduction on the grounds set forth in article
collated and deducted from the "disposable free 760 shall prescribe after four years from the
portion": Thus birth of the first child, or from his
legitimation, recognition or adoption, or
P 2,250,000.00 – Disposable free portion. from the judicial declaration of filiation, or
- 1,000,000.00 – Donation to Jun from the time information was received
P 1,250,000.00 – Remainder of the disposable
regarding the existence of the child believed
dead.
free portion.
The action cannot be renounced, and is
Conclusion: transmitted, upon the death of the donor, to
- Since the donation does not exceed the his legitimate and illegitimate children and
"disposable free portion", no reduction would be descendants.
suffered by the donation. It will be respected.
- Note: The Rules on Prescription of Actions
o If the donation happens to exceed the § Actions prescribe by the mere lapse of time fixed
"disposable free portion", it will be reduced by law (Art. 1139). Under the Article, the action
up to the extent of the excess. for revocation or reduction shall prescribe after
o If the donation is greater than the free four (4) years reckoned as follows:
portion, it will be revoked because there is
nothing left of the free portion to cover it. 1) As to birth of a child:
o If the donor is still alive, there will be no - The period shall be counted from the
delivery of the legitimes of the compulsory birth of the child.
heirs. - If there are two or more children born,
o The mental computation is resorted to, the counting is from the birth of the first
merely for the determination of whether the child.
donation is excessive or not. If it is - If more than four (4) years had already
excessive, it will be reduced or revoked lapsed following the birth of the first
insofar as it affects the legitimes of child without any action, the right of
compulsory heirs. If it does not exceed the action is not revived by the subsequent
"disposable free portion", it will be birth of another child.
maintained. 2) As to legitimation:
- Applying the law literally, the period
shall be counted from the birth of the
ARTICLE 762. Upon the revocation or legitimated child, and not from the date
reduction of the donation by the birth, of marriage of the parents of the child.
appearance or adoption of a child, the - Under Art. 180 of the Family Code, the
property affected shall be returned, or its effects of legitimation shall retroact to
value if the done has sold the same.
the time of the child's birth. If we follow
If the property is mortgaged, the donor may this rule of retroactivity, absurdity will
redeem the mortgage, by paying the amount result. Thus, assuming that the child
guaranteed, with a right to recover the same was born more than four years ago and
from the donee. is legitimated by the marriage of his
When the property cannot be returned, it parents today, he is deemed legitimated
shall be estimated at what it was worth at the at the time of his birth.
time of the donation. - If we count the period of prescription
from the birth of the child, the action has
already prescribed even before the child
What are the obligations of the donee upon
had the opportunity to file it.
revocation or reduction of donation?
- To avoid such absurdity, the better rule
1) He shall return the thing or the object of the do-
is to reckon the period of prescription
nation;
not from birth of the child, but from the
2) If the property had already been alienated and
date of marriage of the parents as an
could not be recovered anymore, its value shall
exception to said Art. 180, Family
be paid to the donor. The value shall be the price
Code.
 3) As to recognition of an illegitimate child: § The word "condition" should be understood in
- The period shall be counted from the its broad sense and not in its strict legal sense.
date of recognition of the child by any § It means "charges or burdens" imposed by the
of the means enumerated in Article 172 donor.
of the Family Code. § Resolutory conditions are included in the
- Mere birth is not enough. There must be meaning of condition.
a valid recognition. § Suspensive conditions, however, are not covered
4) As to adoption: and the reason is obvious.
- The period shall be reckoned from the o If a suspensive condition is not fulfilled, the
date of the filing of the original petition donation does not become effective. If it is
for adoption, provided a decree of not effective, it cannot be the subject of
adoption is issued thereafter. revocation.
5) As to appearance of a child believed to be
dead: Revocation Cannot Be Done Unilaterally by the
- The period shall be counted from the Donor
date an information was received as to § A donor cannot revoke a conditional donation
the existence or survival of the child unilaterally, that is, without going to court, even
believed to be dead. if the donee had breached any of the conditions
- Where the plaintiff filed an action for imposed in the donation.
annulment of the donation based on § A judicial action is essential if the done refuses
fraud thirty-two years after the to return the property, or pay its value to the
execution of the dead of donation, the donor or to the latter's heirs or assigns.
action is already barred. § However, the action must be filed within the
prescriptive period fixed by law, otherwise, it
Rule In Case Concurrence of Two or More will be barred (ibid.).
Causes of Revocation or Reduction o The action to revoke the donation
§ In the event that two or more causes are present, prescribes in four years.
the earliest among them shall be the starting § If the donee voluntarily surrenders the property
point in the reckoning of the period of donated, or its value, there is no need for a court
prescription of the action (See 5 Manresa 169) action.

Right of Action is Transmissible

§ If the donor dies within the four-year ARTICLE 765. The donation may also be
prescriptive period, the right to revoke or reduce revoked at the instance of the donor, by
is inherited by his heirs. This right is reason of ingratitude in the following cases:
transmissible.
(1) If the done should commit some offense
against the person, the honor or the property
of the donor, or of his wife or children under
ARTICLE 764. The donation shall be his parental authority;
revoked at the instance of the donor, when (2) If the done imputes to the donor any
the donee fails to comply with any of the criminal offense, or any act involving moral
conditions which the former imposed upon turpitude, even though he should prove it,
the latter. unless the crime or the act has been
In this case, the property donated shall be committed against the donee himself, his wife
returned to the donor, the alienations made or children under his authority;
by the donee and the mortgages imposed (3) If he unduly refuses him support when
thereon by him being void, with the the donee is legally or morally bound to give
limitations established, with regard to third support to the donor.
persons, by the Mortgage Law and the Land
Registration laws.
This action shall prescribe after four years Acts of Ingratitude Which are Grounds for
from the non-compliance with the condition, Revocation of Donation
may be transmitted to the heirs of the donor, 1) Commission of an offense:
and may be exercised against the donee's - The offense must be directed against the
heirs. person, honor or property of the donor, or
that of his spouse or children under his
parental authority.
Donations With Burdens And Charges; Meaning
- The offense must be a crime against person
of Condition
like physical injury), against honor (like
§ A donor may execute a donation subject to a
libel or against property (like robbery).
condition, the non-fulfilment of which
2) Imputation of a criminal offense, or act
authorizes the donor to go to court to seek its
involving moral turpitude:
revocation (not reduction).
 - The imputation is against the donor only. What is the effect of the revocation of the
- If the imputed criminal act is committed donation due to ingratitude on alienations or
against the donee himself, or against his mortgages made by the donee?
spouse, or children under his parental § If the donation was judicially revoked,
authority, the donation cannot be revoked nonetheless, alienations and mortgages executed
by the donor on ground of ingratitude. by the donee before the registration with the
3) Unjustified refusal to provide support to the Registry of Deeds of the pendency of the
donor: complaint (lis pendens) will be valid.
- The refusal must be unjustified. Thus, if the
done has no money or assets, he cannot be Later Alienations And Mortgages Shall Be Void
faulted for his failure to give support to the § All alienations and mortgages executed by the
donor. donee after the registration of the lis pendens
- The donee's moral duty to give support to shall be void.
the donor is now made a "legal" obligation § Even without registration, if the buyer or
which is enforceable in court. mortgagee of the property donated knew of the
- However, the support, if and when given, complaint for revocation, the sale or mortgage
cannot exceed the value of the donation. will be void as he acted in bad faith. His actual
Beyond that limit, there is nothing more to knowledge of the complaint is tantamount to
revoke. Otherwise, absurdity will result. registration

Discuss: Calanasan v. Sps. Dolorito, G.R. No. Remedy Of Donor

171937, 25 November 2013. § Alienations and mortgages executed after the
annotation of the lis pendens are void (Rule 13,
Reason Behind The Article. Section 14, Revised Rules of Procedure of
§ A person who has been favored with kindness 1997).
and generosity has the moral obligation to be and § If the property is already transferred in the name
remain grateful to his benefactor. of the buyer or mortgagee, the remedy of the
§ It is a matter of tradition that generosity must not donor is to recover the value of the property
be reciprocated with ungratefulness. determined as of the time of the donation (Art.
767)
Grounds Are Limitative
§ The grounds enumerated for the revocation of
donations by reason of ingratitude are limitative ARTICLE 768. When the donation is
(5 Planiol and Rippert, 485). They are exclusive. revoked for any of the causes stated in
§ Thus, in one case where the husband of the done Article 760, or by reason of ingratitude, or
had maligned the donor, it was held that there is when it is reduced because it is inofficious,
no basis for revocation. the donee shall not return the fruits except
§ For the act to be used as ground for revocation, from the filing of the complaint.
it must be imputable to the donee himself and If the revocation is based upon non-
not to another compliance with any of the conditions
imposed in the donation, the donee shall
return not only the property but also the
fruits thereof which he may have received
ARTICLE 766. Although the donation is
after having failed to fulfill the condition.
revoked on account of ingratitude,
nevertheless, the alienations and mortgages
effected before the notation of the complaint Things To Return After Revocation Of Donation
for revocation in the Registry of Property
1) Both the property and the fruits shall be returned
shall subsist.
if the revocation is due to non-compliance with
Later ones shall be void. any condition imposed on the donation. These
fruits are those acquired after the failure to
comply with the condition.
2) Only the fruits accruing from the filing of the
ARTICLE 767. In the case referred to in the action shall be returned if the ground for
first paragraph of the preceding article, the
revocation is any of the following:
donor shall have a right to demand from the
a) Causes stated in Article 760;
done the value of the property alienated
which he cannot recover from third persons, b) Ingratitude (Art. 765); and
or the sum for which the same has been c) Inofficiousness of donation (Art. 771).
mortgaged.
Money Or Cash Donation, Rule
The value of said property shall be fixed as
§ When what was donated consisted of cash or
of the time of the donation.
money, the same rule will be followed except
 that the fruits (civil) will be the legal interest at § If the donor did not file the action against the
the rate of 6% of the amount donated. donee, no one, even his own heirs, can file the
§ Both the amount donated as well as the interest case should he die in the meantime.
will be paid back to the donor if the revocation § This is true even if the one-year period had not
is due to non-compliance with a condition or yet lapsed. T
conditions imposed by the donor upon the § he reason for this rule of intransmissibility of the
donee. right to file action is that the act of ingratitude
committed against the donor is a personal matter
and which he alone has the discretion to forget
ARTICLE 769. The action granted to the or denounce in court.
donor by rea son of ingratitude cannot be § If the action had already been filed but the donor
renounced in advance. This action prescribes died before the case is terminated, the donor's
within one year, to be counted from the time heirs may continue the action already started (5
the donor had knowledge of the fact and it Manresa 183).
was possible for him to bring the action. § Exception: If the complaint had already been
filed during the lifetime of the donee in which
case the heirs will be substituted as defendants.
May the donor make an advance renunciation of
§ Other Exceptions:
action to revoke a donation on ground of
1) when the donor did not come to know of
ingratitude?
the donee's act of ingratitude (5 Manresa
§ The law allows the donor to revoke the donation
183-184);
he made, based on the ingratitude of the donee
2) If he pursued a criminal case against the
(Art. 765).
donee las when the act of ingratitude
§ The donor cannot however make a renunciation
constitutes a felony but he died without
of actions to revoke in advance, that is, even
having filed the civil action for revocation
before the act had been actually committed.
or annulment of the donation as this
§ If the act of ingratitude had already been done,
criminal case shows absence of pardon (3
the right to revoke may now be renounced
Navarro Armandi 74); and
because that is in effect, an act of pardon of the
3) if the act of ingratitude, which is also a
donee.
crime, had caused the death of the donor (5
§ In the latter case, the ingratitude is not a future
Manresa 184).
act, but one which had been committed already.
§ Whenever the heirs of the donor are allowed to
§ What cannot be waived refers to future acts of
pursue the case, either they are substitute-
ingratitude.
plaintiffs (as when the action was begun by the
donor but he died without finishing it) or they
Prescriptive Period For Filing Of The Action To
are original party-plaintiffs as when the donor
Revoke Donation
died without learning of the donee's act of
§ The action to revoke a donation by reason of
ingratitude. However, with respect to the heirs of
ingratitude of the donee (Art. 765) must be filled
the donee, they can only be parties in the case as
within one year from the time the donor had
substitutes for the deceased donee – never as
learned of the donee's act of ingratitude,
original party-defendants.
provided it was possible for him to file the
action.
§ Thus, if he happens to be seriously sick leg., in
comatose for a long time), the prescriptive ARTICLE 771. Donations which in
period will not run during his physical accordance with the provisions of article 752,
incapacity. are inofficious, bearing in mind the
estimated net value of the donor's property
at the time of his death, shall be reduced with
regard to the excess; but this reduction shall
ARTICLE 770. This action shall not be not prevent the donations from taking effect
transmitted to the heirs of the donor, if the during the life of the donor, nor shall it bar
latter did not institute the same although he the donee from appropriating the fruits.
could have done so, and even if he should die
For the reduction of donations the provisions
before the expiration of one year.
of this Chapter and of articles 911 and 912 of
Neither can this action be brought against this Code shall govern
the heir of the donee, unless upon the latter's
death the complaint has been filed.
Hereditary Net Estate Of The Donor
§ The net estate is the remainder of the assets (cash
When Right to File Action Cannot Be and/or property) after all the obligations of the
Transmitted to the Heirs donor had been settled plus the value of the
donations made which must be collated, unless
otherwise provided in the will (Art. 908).
Inofficious Donation Inofficiousness Of Donations Determinable Only
§ A donation is inofficous or excessive when its After Death Of Donor; Effects
amount impairs the legitimes of the compulsory § In the meantime, that is, during the lifetime of
heirs. the donor, the inofficious donation is effective.
§ Donations must be charged only against the § The inofficiousness of the donation can only be
disposable free portion. If its amount exceeds the determined after the donor's death.
disposable free portion, the excess is void for § Consequently, the donee is entitled to the fruits
being inofficious. To allow it will Impair the of the property donated during the lifetime of the
reserved legitimes of compulsory heirs which is donor (Art. 771).
prohibited by law
Reduction Of Donations
ILLUSTRATIONS: § Articles 911 and 912 provide the procedures for
1) X died leaving a will. the reduction of donations:
He was survived by three legitimate children (B,
Gigi and Zee), his spouse (Y) and one "Art. 911. After the legitime has been
recognized illegitimate child (El). determined in accordance with the three
During his lifetime, X made a donation of P1 M preceding articles, the reduction shall be made
to a friend (Jun). At the time of his death, X had as follows:
an obligation of P2,000,000.00 but left a deposit (1) Donations shall be respected as long as
of P10,000,000.00 in the bank. the legitime can be covered, reducing or
annulling, if necessary, the devises or legacies
Computation Of The Net Estate: made in the will
a) (1) 10,000,000.00 – Deposit in the bank (2) The reduction of the devises or legacies
(2) 1,000,000.00 – Donation to Jun which must be collated shall be pro rata, without any distinction
P11,000,000.00 – Total assets whatever.
If the testator has directed that a certain
b) P11,000,000.00 – Total assets devise or legacy be paid in preference to others,
2,000,000.00 – Obligations which must be paid. it shall not suffer any reduction until the latter
P 9,000,000.00 – Net estate have been applied in full to the payment of the
legitime.
Determination Of Legitimes And Disposable Free (3) If the devise or legacy consists of a
Portion: usufruct or life annuity, whose value may be
1. B, Gigi and Zee – will get one-half of the whole considered greater than that of the disposable
estate of P9.M., that is, P4,500,00.00. Each one portion, the compulsory heirs may choose
will get P1,500,000.00 in accordance with Art. between complying with the testamentary
898. provision and delivering to the devisee or
2. Y – will get P1,500,000.00 (equivalent to one legatee the part of the inheritance of which the
share of one legitimate child in accordance with testator could freely dispose.
Art. 898). "Art. 912. If the devise subject to reduction
3. El – will get P750,000.00 (equivalent to 1/2 of should consist of real property, which cannot be
the share of one legitimate child in accordance conveniently divided, it shall go to the devisee if
with Art. 176, Family Code). the reduction does not absorb one-half of its
4. Disposable Free Portion – is P2,250,000.00 after value; and in a contrary case, to the compulsory
deducting the legitimes of the legitimate heirs; but the former and the latter shall
children, spouse and illegitimate child. reimburse each other in cash for what
5. Jun will retain the P1,000,000.00 donated to him respectively belongs to them.
because it is well within the value of the The devisee who is entitled to a legitime
disposable free portion. The same will not be may retain the entire property, provided its value
reduced. does not exceed that of the disposable portion
6. Actual balance of the disposable free portion is and of the share pertaining to him as legitime"
P1,250,000.00 after deducting the P1 M. given (New Civil Code).
to Jun

2) What is the effect if the donation to Jun is ARTICLE 772. Only those who at the time of
P2,000,000.00? Then, the donation is inofficious the donor's death have a right to the legitime
as it exceeds the disposable free portion and their heirs and successors in interest
(P1,250,000.00) by P750,000.00. The excess of may ask for the reduction of inofficious
P750,000.00 will be paid back to the estate by donations.
Jun, otherwise, the legitimes of the compulsory Those referred to in the preceding
heirs will be impaired to that extent (Art. 771). paragraph cannot renounce their right
Impairment of legitime is not allowed (Art. 842) during the lifetime of the donor, either by
 express declaration, or by consenting to the more recent date shall be suppressed or
donation. reduced with regard to the excess.
The donees, devisees and legatees, who are
not entitled to the legitime and the creditors Disposable Portion
of the deceased can neither ask for the
§ This refers to the "disposable" part of the free
reduction nor avail themselves thereof.
portion in the net estate of a testator which Is
arrived at after segregating the legitimes of the
Persons Qualified To File Action For Reduction legitmate children, the spouse and the
Of Inofficious Donations illegitimate children, if any, or of the secondary
§ This kind of action is pursuable only after the compulsory heirs in the absence of the
death of the donor. aforementioned primary compulsory heirs (See
§ Accordingly, it cannot be filed by the donor Article 908).
himself. § When the entire free portion had been totally
§ Only compulsory heirs or their heirs and consumed by the legitimes of the spouse and of
successors in interest may sue for reduction of several recognized illegitimate children there is
inofficious donations. nothing more left for the disposable free portion.
§ Voluntary heirs (devisees and legatees) and
donees who are not compulsory heirs cannot When Disposable Free Portion Is Insufficient To
seek the reduction of inofficious donations. Cover Two or More Donations; Rule
§ When the disposable free portion is not enough
Creditors Of The Deceased; Rule to satisfy all the donations, those of the recent
§ Creditors of the deceased are not also allowed to dates shall be suppressed if totally inofficious or
avail themselves of this action for reduction of reduced accordingly if only partly inofficious or
inofficious donation (Art. 772, third par.). excessive.
§ However, they can seek the annulment of § In other words, the later donations must be
donations made in fraud of creditors. dropped first.
§ The earlier donations, are given preference in
Remedies Of Creditors accordance with the principle that,
§ During the lifetime of the donor, the creditors 1) "priority in time gives priority in rights" (3
can sue for the annulment of inofficious Oyuelos 93), and
donations made in fraud of creditors (Art. 1387); 2) the irrevocability of donations inter-vivos.
or they can go against the estate of the deceased § Generally, if there is a disposable free portion,
and not against the donees. the first donations are accommodated therein.
§ Creditors, unlike the heirs of the donor, have no § It is the later donations that ordinarily impinge
right to sue donees for the reduction of the on the legitimes of the compulsory heirs which
inofficious donation under Art. 772 (See: legitimes are legally untouchable.
Catibog, et al. vs. Ramon, et al. [CAl 50 0.G.
5433). No Reduction Of Wedding Gifts
§ As exception to Article 773, there shall be no
Adopted Person reduction in the case of certain wedding gifts
§ An adopted person or adoptee (whether adult or made in favor of descendants by their parents or
minor) is deemed included among the ascendants which should not exceed one-tenth of
compulsory heirs under Art. 887 who could sue the sum of the disposable free portion.
for reduction of inofficious donations because
they are considered legitimate children for all Some Grounds For Suppression Of Donations
legal intents and purposes (Art. 189. Family § Donations may be suppressed if they are
Code; R.A. No. 8552 (Domestic Adoption Law a) totally inofficious or excessive because
of 1998). there is no more disposable free portion to
accommodate them;
Waiver Of Right To Sue For Suppression Or Re b) failure to comply with the conditions
duction Of Inofficious Donation imposed by the donor (Art. 764);
§ A waiver of an heir's right to file an action for c) ingratitude of the donee (Art. 765);
suppression or reduction of inofficious donation, d) when the donation is in fraud of creditors
made during the lifetime of the donor is void in and the amount of the judgment is equal or
whatever form it is extended. more than the amount of the disposable free
§ Such waiver is against public policy. portion (Art. 1387).

Some Grounds For Reduction Of Donations

ARTICLE 773. If, there being two or more § The following are some grounds to reduce
donations, the disposable portion is not donations:
sufficient to cover all of them, those of the
 a) when the donor did not leave sufficient
property for his own support and that of his
family (Art. 750):
b) birth of a child of the donor after the donation
had been made (Art. 760, first par.);
c) when a child of the donor believed to be dead
turns out to be alive (Art. 760, second par.);
d) when the donor had adopted a minor child
after the donation had been made (Art. 760,
third par):
e) inofficiousness on the donation (Art. 771);
and
f) when the donation is made in fraud of
creditors and the amount of the Judgment is
less than the amount of the disposable free
portion (Art. 1387).

Prescriptive Period For Annulment Of Donation

§ An action to annul a donation prescribes in four
(4) vears from the date of the discovery of the
fraud.
§ At the latest, if there is registration of the deed
of donation the reckoning period begins from the
date of registration which is a notice to the whole
world (Dumanon vs. Butuan City Rural Bank,
119 SCRA 193)