Tuesday, 13 May 2025

Can a gift be revoked? Learn the law on Donations in the Philippines


Under Article 725 of the Civil Code, a donation is defined as:

“An act of liberality whereby a person disposes gratuitously of a thing or right in favor of another, who accepts it.”

Essential elements of a valid donation:

  • Liberality: The donor must act out of pure generosity, with no obligation to give.
  • Reduction of the donor’s patrimony: The donor parts with something of value, decreasing their wealth.
  • Increase in the patrimony of the donee: The donee acquires the asset without giving anything in return.
  • Acceptance: The donation must be accepted by the donee personally or through an authorized person during the donor’s lifetime (Art. 746).


2. Kinds of Donations

Donations are classified according to timing and nature:

a. Donations Inter Vivos

Takes effect during the lifetime of the donor and is governed by the rules under Articles 725 to 773.

  • Irrevocable once accepted (except under certain revocation grounds).
  • Example: A father gives a parcel of land to his son as a wedding gift.

b. Donations Mortis Causa

Takes effect upon the death of the donor and is governed by the law on succession (Art. 728).

  • Revocable at any time before death.
  • Must comply with the formalities of a will, such as testamentary capacity and probate.

c. Other Classifications:

  • Onerous Donations (Art. 733) – When the donee is required to do something of value in return.
  • Remuneratory Donations (Art. 726) – Reward for past services not demandable by law.
  • Modal Donations – Subject to conditions or charges, but still gratuitous in nature.

 

3. Formalities Required

The form of the donation is essential to its validity under the law:

a. Donation of Movable Property (Art. 748)

  • If the value does not exceed ₱5,000: Oral donation is valid if there is simultaneous delivery.
  • If the value exceeds ₱5,000: Must be in writing, and accepted in writing as well.

b. Donation of Immovable Property (Art. 749)

  • Must be in a public instrument.
  • Acceptance must be in the same or a separate public instrument, notified to the donor in authentic form.
  • Non-compliance renders the donation void.

 

4. Limitations and Capacity

a. Capacity of the Donor and Donee (Art. 735)

  • Donor: Must have capacity to contract and dispose of the property.
  • Donee: Must not be incapacitated by law to accept.

b. Persons Disqualified to be Donees (Art. 739)

  • Those guilty of adultery or concubinage with the donor.
  • Public officers in connection with their official duties.
  • Guardians of their wards during incumbency (with exceptions).

c. Donation of Future Property (Art. 751)

  • Not allowed, except if the donation mortis causa follows the rules of wills.

d. Inofficious Donations (Arts. 750, 771)

  • Donations that impair the legitime (the reserved share of compulsory heirs) are subject to reduction.
  • Even if formally valid, the donation can be challenged if it exceeds the free portion of the estate.

 

5. Grounds for Revocation

Donations inter vivos may be revoked under the following grounds:

a. Non-fulfillment of Conditions (Art. 764)

If the donation is subject to a condition or charge, its violation is a valid ground for revocation.

b. Ingratitude (Art. 765)

Examples:

  • Donee commits a crime against the donor or donor’s family.
  • Refuses support when donor is in need.
  • Insults or seriously injures the donor.

Prescriptive period: One year from the knowledge of the ingratitude.

c. Birth of Children (Art. 760)

A donation may be revoked if the donor did not have children or descendants at the time, and later:

  • A legitimate or illegitimate child is born.
  • An unknown child appears or is recognized.

6. Effects of Revocation

Once revoked, the following applies:

  • Property returns to the donor.
  • Fruits or income received before the revocation need not be returned (Art. 769).
  • If the donation was onerous or modal, ordinary contract rules apply in resolving disputes.
  • If the donee has sold or transferred the property, protection of third parties in good faith may apply (Art. 1385, regarding rescission).

 

7. Prescriptive Periods

Different grounds of revocation have varying prescriptive periods:

Revocation Ground

Prescriptive Period

Ingratitude

1 year from knowledge (Art. 767)

Non-fulfillment of condition

4 years (based on Art. 1146 NCC)

Inofficious donation

10 years from donor's death (based on Art. 1144)

Action to enforce formalities

No specific period; governed by general rules on void donations

⚠️ A void donation due to lack of formalities (e.g., no public instrument for land) can be assailed at any time, because nullity does not prescribe.


๐Ÿง  BAR EXAM QUESTIONS:

1999 Bar Exam – Validity of donation to an unborn child
Q: Alma donates ₱100,000 to her pregnant sister’s unborn child. The baby dies one hour after delivery. Can Alma recover the amount?
A: The donation is valid if the child was viable (seven-month intrauterine life) and the donation was properly accepted. However, it may be void if form (written requirement) under Art. 748 was not followed.

2000 Bar Exam – Revocation due to ingratitude
Q: What acts of ingratitude justify revocation of a donation?
A: Under Article 765, acts such as serious insult, committing crimes against the donor, or refusal to support the donor may warrant revocation.

If you were a donor and your donee later refused to support you in your old age, would you revoke the donation? Should the law be stricter in protecting donors from ungrateful recipients?

Comment your thoughts below!

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๐Ÿ“Œ DISCLAIMER:
This content is for educational purposes only and does not constitute legal advice. While efforts are made to ensure factual accuracy based on primary legal sources, viewers should consult a qualified lawyer for specific legal concerns.



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