EFFECT OF DONATIONS AND LIMITATIONS THEREON
Category: Property, Ownership and Its Modifications
EFFECT OF DONATIONS AND LIMITATIONS THEREON
Art. 750. The donations may comprehend all the present property of the donor, or part thereof, provided he reserves, in full ownership or in usufruct, sufficient means for the support of himself, and of all relatives who, at the time of the acceptance of the donation, are by law entitled to be supported by the donor. Without such reservation, the donation shall be reduced in petition of any person affected. (634a)
REASON FOR THE LAW ON DONATIONS WITHOUT THE NEEDED RESERVATION
> This article is important because the claims of the donor’s own family shouldn’t be disregarded
STATUS OF THE DONATION
> An excessive donation under this article is not void, but merely reducable to the extent support of the relatives is unimpaired
> The party prejudiced can ask the court for the reduction
SUPPOSE HE MADE THE RESERVATION BUT THIS DOESN’T APPEAR IN THE DEED OF DONATION, IS THE DONATION ALL RIGHT?
> Yes, for the law doesn’t state that the deed of donation must expressly say that a reservation has been made
> That indeed there was a reservation can be proved by evidence aliunde
DONATIONS NOT INCLUDED UNDER THIS ARTICLE
> The onerous donation
> Donation mortis causa
> Donations propter nuptias
MEANING OF PRESENT PROPERTY
> Present property is that the donor can dispose of at the time of donation
PAYMENT OF EXISTING CREDITORS
> Aside from the reservation as to support, the donor must also reserve enough of his property to pay off his debts contracted before the donation, otherwise, there is presumption that the donation was made to defraud creditors
Art. 751. Donations cannot comprehend future property. By future property is understood anything which the donor cannot dispose of at the time of the donation. (635)
FUTURE PROPERTY
> Anything which the donor cannot dispose of at the time of the donation
> Future inheritance cannot be the object of the donation, but present or accrued inheritance may be even if the properties have not yet been delivered, for in succession, the rights of inheritance are transmitted from the very moment of death
REASON FOR THE ARTICLE WHICH GENERALLY PROHIBITS THE DONATION OF FUTURE PROPERTY
> One cannot give away that which doesn’t have nemo dat quod non habet
Art. 752. The provisions of Article 750 notwithstanding, no person may give or receive, by way of donation, more than he may give or receive by will.
The donation shall be inofficious in all that it may exceed this limitation. (636)
LIMITATION ON THE GIVER
> A person may not give by donation more than what he can give by will
> And a person may not receive by way of donation more than what the giver may give by virtue of a will
TO WHOM LIMITATION APPLIES
> The limitation naturally applies to persons only who have compulsory heirs at the time of the former’s death
PRESCRIPTION PERIOD
> The action to revoke or reduce the inofficious donations must be brought by the donor’s compulsory heirs, within 5 years after the donor’s death
Art. 753. When a donation is made to several persons jointly, it is understood to be in equal shares, and there shall be no right of accretion among them, unless the donor has otherwise provided. The preceding paragraph shall not be applicable to donations made to the husband and wife jointly, between whom there shall be a right of accretion, if the contrary has not been provided by the donor. (637)
GENERALLY NO ACCRETION INSTANCES WHEN ACCRETION IS PROPER
1. In case of predecease
2. In case of incapacity
3. In case of refusal or repudiation
DONATION TO WIFE OF ANOTHER
> Note that in case of a donation is made by a friend to the wife of another, the husband of the latter has to consent, otherwise the donation is not valid
> The exception is when the donor is the ascendant, parent-in-law, or collateral relative within the 4th degree of the wife
Art. 754. The donee is subrogated to all the rights and actions which in case of eviction would pertain to the donor. The latter, on the other hand, is not obliged to warrant the things donated, save when the donation is onerous, in which case the donor shall be liable for eviction to the concurrence of the burden. The donor shall also be liable for eviction or hidden defects in case of bad faith on his part. (638a)
SUBROGATION OF DONEE EVICTION, DEFINED.
> Eviction shall take place whenever by final judgment based on a right prior to the sale or an act imputable to the vendor/donor, the vendee/donee is deprived the whole or of a part of the thing purchased/donated
MEANING OF HIDDEN DEFECTS
> Those which are not patent upon a physical examination of the object donated
WHEN WARRANTY EXISTS
1. If the donor is in bad faith
2. If donation is onerous
3. If warranty is expressly made
4. If donation is propter nuptias unless the contrary is stipulated
Art. 755. The right to dispose of some of the things donated, or of some amount which shall be a charge thereon, may be reserved by the donor; but if he should die without having made use of this right, the property or amount reserved shall belong to the donee. (639)
DONATIONS WITH RESERVATIONS ON THE RIGHT TO DISPOSE
Art. 756. The ownership of property may also be donated to one person and the usufruct to another or others, provided all the donees are living at the time of the donation. (640a)
DONATION OF NAKED OWNERSHIP AND USUFRUCT
> When one person receives the usufruct, it is understood that the other donee receives only the naked, and the not the full
ownership
FORM
> The usufruct of real property, being real property by itself should be donated in the form prescribed for real properties
> The naked ownership and usufruct of personal properties are personal properties themselves, so only the formalities for the donation of personal property would be required
Art. 757. Reversion may be validly established in favor of only the donor for any case and circumstances, but not in favor of other persons unless they are all living at the time of the donation.
Any reversion stipulated by the donor in favor of a third person in violation of what is provided in the preceding paragraph shall be void, but shall not nullify the donation. (614a)
CONVENTIONAL REVERSION
Art. 758. When the donation imposes upon the donee the obligation to pay the debts of the donor, if the clause does not contain any declaration to the contrary, the former is understood to be liable to pay only the debts which appear to have been previously contracted. In no case shall the donee be responsible for the debts exceeding the value of the property donated, unless a contrary intention clearly appears. (642a)
STIPULATION THAT DONEE SHOULD PAY DEBTS OF THE DONOR
1. Pay only for prior debts contracted after the donation had been made, unless there is stipulation to this effect
2. Pay only for debts up to the value of the property donated
Art. 759. There being no stipulation regarding the payment of debts, the donee shall be responsible therefor only when the donation has been made in fraud of creditors. The donation is always presumed to be in fraud of creditors, when at the time thereof the donor did not reserve sufficient property to pay his debts prior to the donation. (643)
RULES WHEN THERE IS NO SUCH STIPULATION
> General rule is that the donee is not required to pay
> Exception is when the donation is made in fraud of creditors
PRESUMPTION
> The law establishes a presumption when the donation is apparently in fraud of creditors, namely failure to reserve sufficient property to pay previous debts