CIVIL LAW: PROPERTY, OWNERSHIP, AND ITS MODIFICATIONS

Donation: Essential Elements

Donation is a mode of acquiring ownership whereby a person, the donor, gratuitously transfers ownership of a thing or right to another, the donee, who accepts it. As governed by the Civil Code of the Philippines, donations are subject to specific essential elements and conditions, as detailed below.

I. Definition of Donation

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

II. Essential Elements of a Valid Donation

To be valid, a donation must meet the following essential requisites:

A. Capacity of the Donor

Legal Capacity:
- The donor must have the capacity to make a donation at the time of its execution. This includes:
  - Being of legal age.
  - Having full ownership of the property to be donated.
  - Possessing the free disposition of such property (i.e., free from liens or encumbrances unless agreed upon by the donee).
Prohibition to Donate:
- Certain individuals are prohibited from making donations under the law:
  - Persons disqualified due to undue influence or public policy (e.g., guardians to wards, attorneys to clients during pendency of litigation).
  - Donations between spouses during the marriage are void, except for moderate gifts during family occasions (Article 87 of the Family Code).

B. Capacity of the Donee

General Rule:
- The donee must have the capacity to acquire property or rights.
Prohibitions:
- Persons prohibited by law from accepting donations include:
  - Incapacitated persons under legal disabilities.
  - The same classes of individuals mentioned in the prohibition to donate (e.g., those in fiduciary relationships).

C. Subject Matter

Requisites of the Object:
- The donation must involve:
  - A thing or right which is determinate.
  - Property that the donor can lawfully dispose of at the time of the donation.
Exclusions:
- Future property cannot be the subject of a donation (Article 751).
- Donation cannot encroach upon the reserved legitime of compulsory heirs.

D. Cause or Consideration

Gratuitous Intent:
- The donation must be made out of pure liberality. There should be no expectation of material compensation or equivalent benefit.

E. Acceptance

Express Acceptance:
- The donee must expressly or impliedly accept the donation during the donor’s lifetime.
- In donations of immovable property, acceptance must be in a public document to be valid.
Formality of Acceptance:
- If the donation involves movable property, acceptance may be oral or written unless delivery has already been made.
- If it involves immovable property, acceptance must be in the same public instrument or in a separate public instrument notified to the donor.

III. Formalities of a Donation

A. Movable Property

Simple Donations (Less than PHP 5,000):
- No specific formalities required; can be done orally or in writing.
Exceeding PHP 5,000:
- Must be in writing, otherwise void.

B. Immovable Property

Requirement of a Public Instrument:
- Donation and acceptance must both be in a public instrument, as mandated by Article 749.
- If acceptance is made in a separate document, the donor must be notified for validity.

C. Conditional Donations

If the donation is subject to a condition, such condition must be fulfilled for the donation to take effect. The condition must be lawful and possible.

D. Donations Mortis Causa

Donations that take effect only after the donor’s death are governed by the formalities of wills (Articles 728-733).

IV. Limitations on Donations

Prohibition on Inofficious Donations:
- A donation is inofficious if it prejudices the legitime of compulsory heirs. Such donations are reduced to preserve the legitime.
Reversionary Clauses:
- Donations may include clauses stipulating that property will revert to the donor or a third person upon the occurrence of a certain condition.

V. Revocation or Reduction of Donations

Grounds for Revocation:
- Non-fulfillment of a condition.
- Acts of ingratitude by the donee (e.g., committing offenses against the donor).
- Non-compliance with charges imposed by the donor.
Reduction Due to Inofficiousness:
- The donation may be reduced to protect the reserved legitime of compulsory heirs.

VI. Effects of Non-Compliance with Requisites

A donation that does not meet the essential elements or formalities required by law is void or voidable, depending on the defect.

VII. Practical Applications and Case Law

Case Precedents:
- The Supreme Court has consistently upheld the need for strict compliance with the formalities, especially for donations of immovable property (e.g., Heirs of Bautista v. Lindo, GR No. 157033).
- Failure to accept the donation in the prescribed manner renders the donation invalid.
Interpretation of Gratuitous Intent:
- The courts evaluate the intent of the donor and the circumstances surrounding the donation to determine whether the act is truly gratuitous.

VIII. Conclusion

The essential elements of a donation under Philippine law emphasize the importance of intent, capacity, formality, and acceptance to ensure its validity. Non-compliance with these requirements can invalidate the donation, making strict adherence critical for the protection of both donor and donee.