De Luna vs. Abrigo: 181 SCRA 150
De Luna vs. Abrigo: 181 SCRA 150
De Luna vs. Abrigo: 181 SCRA 150
Abrigo
181 SCRA 150
De Luna v. Abrigo 181 SCRA 15
Doctrine:
Article 733 of the Civil Code expressly provides that onerous donations are
governed by the rules on contracts. While Article 764 provides that actions for the
revocation of a donation must be brought within four (4) years from the non-compliance
of the conditions of the donation, the provision does not apply to onerous contracts that
provide for an automatic reversion clause. In this case, the Deed provides for the
automatic reversion of the donated area in case of non-compliance with its conditions.
This stipulation is valid as it is not contrary to law, moral, public order or policy
This is a petition for review on certiorari under Rule 45 of the Order of respondent Judge
Sofronio F. Abrigo, dismissing the complaint for the cancellation of the donation alleging
that the terms and conditions of the donation were not complied with by the foundation.
Prudencio de Luna donated a portion of his lot to the Luzonian University Foundation,
Inc. (“Foundation”). According to its Deed, the donation was subject to the condition that
the donee Foundation shall construct at its own expense a chapel, a nursery and
kindergarten school, to be named after St. Veronica, and provided for the automatic
reversion to the donor of the donated property in case of violation or non- compliance.
Petitioners, who claim to be the children and only heirs of the late Prudencio de Luna
filed a complaint alleging that the terms and conditions of the donation had not been
complied with by the foundation. Among others, it prayed for the cancellation of the
donation and the reversion of the donated land to the heirs. In its answer, the
Foundation invoked the affirmative defense of prescription of action and prayed for the
dismissal of the complaint.
The RTC ruled in favor of the Foundation holding that the action was prescribed in 4
years.
Petitioners come before the Court arguing that the lower court erred in treating the
complaint as one for judicial decree of revocation of the which admittedly prescribes in
four (4) years. This is because the complaint must be deemed to be an action to enforce
a written contract which prescribes in ten (10) years as provided in Article 1144.
Ruling:
Yes, Article 733 of the Civil Code expressly provides that onerous donations are
governed by the rules on contracts. While Article 764 provides that actions for the
revocation of a donation must be brought within four (4) years from the non-compliance
of the conditions of the donation, the provision does not apply to onerous contracts that
provide for an automatic reversion clause. In this case, the Deed provides for the
automatic reversion of the donated area in case of non-compliance with its conditions.
This stipulation is valid as it is not contrary to law, moral, public order or policy (CIVIL
CODE, Art. 1306).
The validity of the stipulation in the contract providing for the automatic reversion
of the donated property to the donor upon non-compliance cannot be doubted. It is in
the nature of an agreement granting a party the right to rescind a contract unilaterally in
case of breach, without need of going to court. Upon the happening of the resolutory
condition of non-compliance with the conditions of the contract, the donation is
automatically revoked without need of a judicial declaration to that effect