H.

Modes of Acquiring Ownership

1. Occupation
• Occupation is a mode of acquiring ownership by the apprehension of a corporeal
thing which has no owner, by a person having capacity for the purpose, with intent to
appropriate it as his, and according to the rules prescribed by law.
• It is the taking of possession which by itself confers ownership.
• It is limited to things without an owner and cannot be asserted over things owned by
someone else.
• A thing that is considered as res nullius can be owner through occupation.
• Requisites of Occupation:
1. The subject must have the intention to acquire ownership and therefore he must
have the necessary capacity to consent.
2. The object must be appropriable by nature and without an owner.
3. There must be an act of taking possession of the thing, which does not necessarily
mean material holding, it being sufficient that the thing is considered subjected to
the disposition of the possessor.
• Hidden treasure cant be acquired by occupation and such treasure must have no owner.
• The ownership of a piece of land cannot be acquired by occupation (Art. 714).
• Any person who has found lost property and fails to deliver the same to the local
authorities or its owner, commits the crime of theft.
• A finder of lost property can be charged with theft when he knows or learns who the
owner is and despite such knowledge he continues to retain the ting with intent of gain.

2. Donation
a. Nature
• Donation is a bilateral and, as such, is a contract; but it is a unilateral contract which
imposes obligations only on the donor.
• Donation has all the requisites of contracts (consent of both parties, subject matter and
cause), and like them requries tradition (delivery) to vest title in the donee.
• The donation is perfected from the moment the donor knows of the acceptance by the
donee. (Art 734)
• Kinds of donations:
A. Donation Inter Vivos— which take effect during the lifetime of the donor.

1
 A. Pure or Simple Donation (Art 725)— Donation is an act of liberality whereby
a person disposes gratuitously of a thing or right in favor of another.
— It is gratuitous and irrevocable.
— Donation of property under leasehold contract is valid.
B. Remunatory Donation (Art 726)
— All other donations, aside from simple donations are remuneratory.
— In its most proper sense, remuneratory donations are those which
remunerate past services which do not constitute a demandable debt.
C. Conditional or Modal Donation
— The donation may impose upon the donee a burden inferior in value
to that of the thing donated.
D. Onerous
— The donations are for a valuable consideration, which is considered
the equivalent of the donation, such as when a donation is given in compensation of a
recoverable debt, that is, a debt demandable against the donor.
B. Mortis Causa— which take effect upon the death of the donor.
• Elements of Donations— 3 essential elements:
A. The reduction of the patrimony of the donor.
B. The increase in the patrimony of the donee.
C. The intent to do an act of liberality.

b. Persons who may give or receive a donation

• All persons who may contract and dispose of their property may make a donation. (Art
725)
• Both the capacity to contract and capacity to dispose of property must exist.
• Guardians and trustees cannot donate the property entrusted to them. (Art 736)
• The donors capacity shall be determined as of the time of the making of the donation.
(Art 737)
• This must be construed in a way that the phrase “making of donation” refers to the
capacity of the donor at the perfection of the donation.
• All those who are not specially disqualified by law may accept donations. (Art 738).
• The donee must accept the donation personally, or through an authorized person with a
special power for the purpose, or with a general and sufficient power; otherwise, the
donation shall be void. (Art 745)

2
 • The acceptance must be made during the lifetime of the donor and the donee. (Art 746)
• If the donor dies before he learns of the acceptance, the donation does not take effect.
• Minors and others who cannot enter into a contract may become donees but acceptance
shall be done through their parents or legal representatives. (Art 741)
• The following donations shall be void:
2. Those made between persons who were guilty of adultery or concubinage at the time
of the donation;
3. Those made between persons found guilty of the same criminal offense, in
consideration thereof;
4. Those made to a public officer or his wife, descendants and ascendants, by reason
of this office.
• When the purpose of the donation is to initiate, continue, resume or compensate the illicit
relations between paramours, the donation is void.
• But if the intention is to indemnify the damage caused to the other at the time of
separation, the donation is valid.
• The following persons are disqualified to receive donations—
1. The priest who heard the confession of the donor during his last illness, or the
minister of the gospel who extended spiritual aid to him during the same period;
2. The relatives of such priest or minister of the gospel within the fourth degree, the
church, order, chapter, community, organization, or institution to which such priest
or minister belongs.
3. A guardian with respect to donations made by a ward in his favor before the final
accounts of the guardianship have been approved, even if the donor should die
after the approval thereof; nevertheless, any donation made by the ward in favor
of the guardian when the latter is his ascendant, descendant, brother, sister or
spouse shall be void.
4. Any physician, surgeon, nurse, health officer or drugist who took care of the donor
during his last illness;
5. Individuals, associations and corporations not permitted by law to receive
donations.

c. Effects and limitations of donation

• The donation may comprehend all the present property of the donor provided he
reserves, in full ownership or in usufruct, sufficient means for the support of himself, and

3
 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 on
petition of any person affected. (Art 750)
• This applies to all kinds of donations, except the donation mortis causa, the donation
proper nuptias, and onerous donation.
• A donation of all the present property without reservation of a sufficient amount for his
subsistence is not void but only susceptible for reduction.
• Donations cannot comprehend future property. By future property is understood anything
which the donor cannot dispose of at the time of the donation. (Art 751)
• 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. (Art 752)
• Inofficious donations— this limitation is applies to persons who have compulsory heirs.
• The donation itself is not a nullity but only subject to reduction.
• 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. (Art 753)
• 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 obligated 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. (Art 754)
• 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. (Art 755)
• 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. (Art 756)
• Reversion may be validly established in favor of only the donor for any case and
circumstances, but not in favor 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.
(Art 757)
• 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

4
 be liable to pay only the debts which appear to have been previously contracted. In no
case shall the donee be responsible for debts exceeding the value of the property donated,
unless a contrary intention appear. (Art 758)
• 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 fault of creditors, when at the time thereof the donor did not
reserve sufficient property to pay his debts prior to the donation. (Art 759)

d. Revocation and Reduction

• Every donation inter vivos, made by a person having no children or descendants,
legitimate or legitimated by subsequent marriage, or illegitimate, may be revoked or
reduced as provided in the next article, by the happening of any of these events:
• (1) If the donor, after the donation, should have legitimate or legitimated or illegitimate
children, even though they be posthumous;
• (2) If the child of the donor, whom the latter believed to be dead when he made the
donation, should turn out to be living;
• (3) If the donor should subsequently adopt a minor child. (Art 760)
• This article applies to all donations inter vivos. It does not apply to donations mortis
causa, onerous donations and proper nuptias.
• Birth of Child— In order that the subsequent birth of a child may revoke a donation, it is
necessary, that the chid must not haven been conceived before such donation was
made.
• When revocation takes effect— The donation is revoked “by the happening” of any of
the events enumerated in this article. Revocation takes place ipso jure.
• In the cases referred to in the preceding article, the donation shall be revoked or reduced
insofar as it exceeds the portion that may be freely disposed of by will, taking into account
the whole estate of the donor at the time of the birth, appearance or adoption of a child.
• Extent of revocation— the donation will be revoked only to the extent of the
presumptive legitime of the child.
• Upon revocation or reduction of the donation, appearance or adoption of a child, the
property affected shall be returned, or its value if the donee has sold the same. If the
property is mortgaged, the donor may redeem the mortgage, by paying the amount
guaranteed, with a right to recover the same from the donee. When the property cannot
be returned, it shall be estimated at what it was worth at the time of the donation. (Art 762)

5
• The action for revocation or reduction on grounds based on Art 760 shall prescribe after
four years from the birth of the first child, or from this legitimation, recognition or adoption,
or from the judicial declaration of filiation, or from the time information was received
regarding the existence of the child believed dead. This action cannot be renounced and
is trasmitted upon the death of the donor, to his legitimate and illegitimate children and
descendants. (Art 763)
• If the cause for revocation is the birth of legitimate children, the period of prescription is
to be computed from the birth of the first child.
• The donation shall be revoked at the instance of the donor, when the donee fails to
comply with any of the conditions which the former has imposed. In this case, the
property donated shall be returned to the donor. (Art 764)
• Conditions in this article does not refer to uncertain events but is used in the vulgar
sense of obligations or charges imposed by the donor on the donee.
• When a donation imposes certain conditions which must be done by the donee and
does not specify the time, the Court must fix a period for the fulfillment of such
condition.
• Effect of non-fulfillment— The donor has the choice of enforcing the charge by an
action for specific performance or of revoking the donation.
• Death of donee- The death of the donee does not bar the action of the donor to revoke
the donation for failure of the donee to fulfill the obligation. The donor can go against
the heirs and assigns.
• The donation may also be revoked by reason of ingratitude in the following cases:
• (1) If the donee should commit some offense against the person, the honor or the
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;
• (3) If he unduly refuses him support when the donee is legally or morally bound to give
support to the donor.
• The obligation of gratitude is founded on the idea of moral duty. This duty is personal.
Hence, a donation cannot be revoked because of acts of persons other than the donee.

3. Prescription
— By the concept of prescription, one acquires ownership and other real rights
through the lapse of time in the manner and under the conditions laid down by the law.

6
 — The acquisition of ownership or other real rights through prescription is
retroactive; once the period is completed, the new owner is considered as having acquired
the thing or right from the moment the period began to run.
— Against whom prescription runs— Prescription runs against all persons
having full civil capacity and even against (1) minors and incapacitated person who have
parents, guardians or legal representatives; (2) absentees who have administrators, (3)
persons living abroad who have managers and administrators and (4) juridical persons
except the State and its subdivisions.
— Prescription does not run between husband and wife.
— Acquisitive Prescription— may be ordinary or extraordinary.
— The general requisites of acquisitive prescription are: (1) capacity to
acquire by prescription, (2) a thing capable of acquisition by prescription, (3) possession of
thing under certain conditions, (4) lapse of time provided by law.
— Ordinary Prescription— requires possession of things in good faith
and with just title for the time fixed by law.
— Possession for Prescrition— has to be in the concept of an owner, public,
peaceful and uninterrupted.
-Public— It must be known to the owner of the thing.
-Peaceful— When it is acquired and maintained without any violence,
physical or moral,
-Uninterrupted— Possession is continuous when the possessor has
never ceased to manifest with external acts his intention to exercise a right over the thing.