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C.J. Yulo & Sons Inc. vs.

Roman Catholic Archbishop of disposition in favor of some other charitable


San Pablo organization that Donor may deem best suited to Issue:
the care of the aged. W/N the donation should be revoked?

Facts: However, the donee entered into 3 lease agreements Held:


for the purpose of generating funds to build the
Donor: C.J. Yulo perimeter fence on the donated property and the The Supreme Court held that the donation should not
Donee: Roman Catholic Archbishop of San Pablo construction of a nucleus building for the aged and the be revoked. It proceeded to lay down the different
infirm: aspects that became the basis of its decision.
On September 24, 1977, CJ Yulo and Sons Inc (CJ Yulo
for brevity) donated unto the Roman Catholic Bishop of 1.) Leased a portion of the donated property to Casual breach of the Onerous Donation
San Pablo, a parcel of land at Canlubang, Calamba, Martin Gomez. The lease agreement was
Laguna with an area of 41,117 square meters and entered into by the done without the prior The Court held that the case at bar was in all fours with
registered in its name under Transfer Certificate of Title written consent of the donor, as required in the precedent case of “Republic vs. Silim”.
(TCT) No. T-82803. the deed of donation;
2.) Leased a portion of the donated land to Jose In the precedent case it was held by the Court that
The deed of donation which also bears the acceptance Bostre. Once again, such lease contract was there were 4 types of donations, namely:
of the donee recites the following important without the prior written consent of the
conditions: donor; 1.) Pure and Simple—a pure or simple donation
3.) Leased a portion of the donated land to Rudy is one where the underlying cause is plain
xxx Caballes. The donee did not secure the prior gratuity. This is donation in its truest form.
written consent of the donor.
1.) So much of the land as may be necessary shall 2.) Remuneratory or Compensatory— a
be used for the construction of a home for the On September 20, 1990, pursuant to a board remuneratory or compensatory donation is
aged and infirm, regardless of religion or resolution, the donor, through its president Miguel A. one made for the purpose of rewarding the
creed, but preferably those coming from Yulo, addressed a letter to the donee informing the donee for past services, which services do not
Canlubang, Calamba, Laguna; provided that latter that it was revoking the donation in accordance amount to a demandable debt.
retired and/or aged priests may be admitted with Section 5 of the deed due to the donee’s non-
to the home; and provided further that any compliance with and material breach of the conditions 3.) Conditional or Modal— A conditional or
senior citizen from the area who has retired thereunder stipulated. modal donation is one where the donation is
from business or work may likewise be made in consideration of future services or
admitted to the home, subject to the payment In the same letter, the donor requested for the turn- where the donor imposes certain conditions,
to the institution of such sum as he may afford over of the donee’s TCT No. T-91348 over the donated limitations or charges upon the donee, the
for his support. property. value of which is inferior than that of the
donation given.
Xxx Finally, CJ Yulo (donor) filed a complaint against the
done Roman Catholic Archbishop of San Pablo Inc., 4.) Onerous— an onerous donation is that which
5.) Except with prior written consent of the Donor reciting the imputed non-compliance and violation by imposes upon the donee a reciprocal
or its successor, the Donee shall not use the land the done of the terms and conditions of the deed of obligation or, to be more precise, this is the
except for the purpose as provided above in donation. kind of donation made for a valuable
paragraph 1 hereof, nor sell or dispose the land for consideration, the cost of which is equal to or
any reason whatsoever, nor convey any portion of RTC: The RTC ruled in favor of the donor and revoked more than the thing donated.
the same except in lease for commercial use as the Deed of Donation.
provided above in paragraph 3 hereof, otherwise Also, it was held by the Court that of all the foregoing
the said land with all real improvements thereon CA: Consequently, the CA reversed the ruling of the RTC classifications, donations of the onerous type are the
shall revert in trust to the Donor for prompt and upheld the donation in question. most distinct. This is because, unlike the other forms of
donation, the validity of and the rights and obligations However, the Supreme Court held lack of a prior Abandonment of the idea of constructing a home for
of the parties involved in an onerous donation is written consent is not a ground for revoking the said the aged and infirm
completely governed not by the law on donations but Deed of Donation. The Court based its ruling on the
by the law on contracts. absolute ownership of the done of the donated Finally, C.J. Yulo posits that the donee abandoned the
property. idea of constructing a home for the aged and infirm,
ARTICLE 733 Donations with onerous cause shall be thus violating the clause in the Deed of Donation.
governed by the rules on contracts, and remuneratory In the precedent case of “The Roman Catholic
donations by the provisions of the present Title as Archbishop of Manila vs. CA”, it was held that: The Donee however explains in his letter that the
regards that portion which exceeds the value of the surrounding area was being considered to be
burden imposed. Donation, as a mode of acquiring ownership, results in reclassified into an industrial zone where factories are
an effective transfer of title over the property from the expected to be put up.
Further, the Court held in this case of “Republic vs. donor to the donee. Once a donation is accepted, the
Silim” that: in relation to the law on contracts, in order donee becomes the absolute owner of the property There is no question that this will definitely be
for an onerous donation to be revoked or rescinded donated. Although the donor may impose certain disadvantageous to the health of the aged and the
there must be substantial breach of the contract as to conditions in the deed of donation, the same must not infirm. Thus, the Bishop asked permission from the
defeat the very object of the parties in making the be contrary to law, morals, good customs, public order donor for a possible exchange or sale of the donated
agreement. and public policy. property to ultimately pursue the purpose for which
the donation was intended in another location that is
Applying the doctrine found in the precedent case of Therefore, any condition, which unreasonably more appropriate.
“Republic vs. Silim”, the Court held that: emasculates and denies the integral attribute of
ownership of the donee on the donated property, shall The Court sees the wisdom, prudence and good
1.) The donation by C.J. Yulo to the Roman be considered as an illegal or impossible condition. judgment of the Bishop on this point, to which it
Catholic Archbishop of San Pablo was that of Consequently, such condition shall not be considered as conforms completely.
an onerous donation; imposed.
In Silim, supra, this Court ruled that such exchange does
2.) The 3 lease contracts entered into by the done If C.J. Yulo would insist that the lack of prior written not constitute breach of the terms and conditions of
were for the sole purpose of pursuing the consent is a resolutory condition that is absolute in the donation. We see no reason for the Court to think
objective for which the donation was character, such insistence would result to denial of the otherwise in this case. To insist that the home for the
intended; integral attribute of ownership of the donee. aged and infirm be constructed on the donated
property, if the industrialization indeed pushes through,
3.) The acts of the done did not detract from the A reasonable construction of such condition rather than defies rhyme and reason.
very purpose for which the donation was totally striking it would, therefore, is more in accord
made but precisely to achieve such purpose; with the spirit of the donation. ***End of Report***

4.) A lack of prior written consent of the donor Thus, for as long as the contracts of lease do not
would only constitute a casual breach of the detract from the purpose for which the donation was
deed of donation—which will not warrant the made, the complained acts of the donee will not be
revocation of the donation. deemed as substantial breaches of the terms and
conditions of the deed of donation to merit a valid
Lack of Prior Written Consent revocation thereof by the donor.

The Donor posits that the donee failed to acquire the [Note: The following paragraphs below are factual
prior written consent of the Donor when it contracted answers. I just included this in case you want it to be in
such lease agreements. Therefore, such is a ground of your report.]
revocation of the Deed of Donation.

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