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CENTRAL PHILIPPINE UNIVERSITY v.

COURT OF APPEALS

July 17, 1995 | Bellosillo, J. | Resolutory Condition or Condition Subsequent


PETITIONER: Central Philippine University
RESPONDENT: Court of Appeals and Heirs of Don Ramon Lopez, Sr.
SUMMARY: Don Ramon Lopez executed a deed of donation of a parcel of land in favor of CPU, on the condition that the land
shall be utilized by the CPU for the establishment and use of a medical college. Fifty years have passed and the condition still
has not been complied with. Because of this, the heirs of Don Ramon want the donation annulled and the land reconveyed to
them for non-compliance with the condition. The Court held that more than a reasonable period of 50 years has already been
allowed CPU to avail of the opportunity to comply with the condition to make the donation in its favor forever valid but it still
failed to do so. CPU is ordered to reconvey the land to the heirs of Lopez.
DOCTRINE: An onerous donation is one executed for a valuable consideration which is considered the equivalent of
the donation itself. // When in an obligation with a resolutory condition, more than a reasonable period has been
allowed to comply with the condition and the donee still failed to do so, there is no more need to fix the duration of
the term.
FACTS:
1.

2.

3.

4.
5.

In 1939, Don Ramon Lopez, Sr. who was then a member


of the Board of Trustees of the Central Philippine
College, executed a deed of donation in favor of the
latter of a parcel of land.
Conditions:
- The land shall be utilized by the CPU for the
establishment and use of a medical college
- The college shall not sell, transfer or convey to any
third party nor in any way encumber said land
- The land shall be called Ramon Lopez Campus.
In 1989, the heirs of Don Ramon Lopez filed an action
for annulment of donation and reconveyance against
CPU, alleging that since 1939 up to the time the action
was filed, CPU had not complied with the conditions of
the donation. CPU had even negotiated with NHA to
exchange the donated property with another land
owned by Lopez.
Trial Court: CPU failed to comply with the conditions of
the donation, therefore it is null and void.
CA: reversed.
- The annotations at the back of the CPUs certificate
of tite were resolutory conditions breach of which
should terminate the rights of the donee this
making the donation revocable.
- The donor did not fix a period within which the
condition must be fulfilled. The case should be
remanded to court of origin for the determination
of period.

ISSUE:
WON the donation should be revoked
YES, the donation should be revoked for noncompliance with the conditions imposed for the
donation to be forever valid.
RATIO:
1.

The donation was onerous one executed for a

2.

3.

4.

5.

6.

valuable consideration which is considered the


equivalent of the donation itself.
When Don Ramon Lopez donated the parcel of land to
CPU but imposed an obligation upon the latter to
establish a medical college thereon, the donation must
be for an onerous consideration.
When a person donates land to another on the
condition that the latter would build upon the land a
school, the condition imposed was not a condition
precedent but a resolutory one.
GR: When the obligation does not fix a period but from
its nature and circumstances it can be inferred that a
period was intended, the courts may fix the duration
thereof.
However, in this case, the GR cannot be applied. More
than a reasonable period of 50 years has already been
allowed CPU to avail of the opportunity to comply with
the condition to make the donation in its favor forever
valid. Unfortunately, it failed to do so. Hence, there is
no more need to fix the duration of a term of the
obligation when such procedure would be a mere
technicality and formality.
Since the questioned deed of donation is basically a
gratuitous one, doubts referring to incidental
circumstances of a gratuitous contract should be
resolved in favor of the least transmission of rights and
interests.

RULING:
Judgment of the CA MODIFIED. CPU is directed to reconvey
to heirs of Lopez the parcel of land.
DISSENTING OPINION, Davide:
The conditions in this case do not refer to uncertain
events on which the birth or extinguishment of a juridical
relation depends, but to obligations and charges imposed
by the donor on the donee. It is a modal donation. The
establishment of the medical college as the condition of the
donation is one such prestation.

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