Non-Fulfillment of the Condition or Charge Imposed

Failure to comply with condition

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 imposed upon the latter. (Art. 764, CC)

What is the prescriptive period for bringing the action for revocation of the donation in case of non-fulfillment of the condition or charge imposed? Is the action transmissible?

The action shall prescribe after four years from the noncompliance with the condition. It may be transmitted to the heirs of the donor, and may be exercised against the donee's heirs. (Art. 764, CC)

Return of the property

In this case, the property donated shall be returned to the donor, the alienations made by the donee and the mortgages imposed thereon by him being void, with the limitations established, with regard to third persons, by the Mortgage Law and the Land Registration laws. (Art. 764, CC)

May the donee be compelled to return the fruits?

If the revocation is based upon noncompliance 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 after having failed to fulfill the condition. (Art. 768, CC)

The donor, after the donation was made, sold the property donated to another for failure to comply with the condition imposed. Is the sale an act of revocation?

The act of selling the donated property to another cannot be considered as a valid act of revocation of the deed of donation for the reason that a formal case to revoke the donation must be filed pursuant to Art. 764, CC which speaks of an action that has a prescriptive period of 4 years from non-compliance with the condition stated in the deed of donation. That there can be automatic revocation without the benefit of a court action does not apply in this case since the deed of donation herein is devoid of any provision for automatic revocation in the event of non-compliance with the conditions set forth therein. Thus, a court action is necessary to be filed within 4 years from the non-compliance of the condition violated. (Magat vs. CA, G.R. No. 106756, February 2, 2002).