Quiz 7 - Property

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Art. 712. Ownership is acquired by occupation and by intellectual creation.

Ownership and other real rights over property are acquired and transmitted by law, by
donation, by estate and intestate succession, and in consequence of certain contracts, by
tradition.

They may also be acquired by means of prescription. (609a)

Title I. - OCCUPATION

Art. 713. Things appropriable by nature which are without an owner, such as animals that are
the object of hunting and fishing, hidden treasure and abandoned movables, are acquired by
occupation. (610)
Art. 714. The ownership of a piece of land cannot be acquired by occupation. (n)

Art. 715. The right to hunt and to fish is regulated by special laws. (611)

Art. 716. The owner of a swarm of bees shall have a right to pursue them to another's land,
indemnifying the possessor of the latter for the damage. If the owner has not pursued the
swarm, or ceases to do so within two consecutive days, the possessor of the land may occupy
or retain the same. The owner of domesticated animals may also claim them within twenty
days to be counted from their occupation by another person. This period having expired, they
shall pertain to him who has caught and kept them. (612a)

Art. 717. Pigeons and fish which from their respective breeding places pass to another
pertaining to a different owner shall belong to the latter, provided they have not been enticed
by some article of fraud. (613a)

Art. 718. He who by chance discovers hidden treasure in another's property shall have the right
granted him in article 438 of this Code. (614)

Art. 719. Whoever finds a movable, which is not treasure, must return it to its previous
possessor. If the latter is unknown, the finder shall immediately deposit it with the mayor of the
city or municipality where the finding has taken place.

The finding shall be publicly announced by the mayor for two consecutive weeks in the way he
deems best.

If the movable cannot be kept without deterioration, or without expenses which considerably
diminish its value, it shall be sold at public auction eight days after the publication.

Six months from the publication having elapsed without the owner having appeared, the thing
found, or its value, shall be awarded to the finder. The finder and the owner shall be obliged, as
the case may be, to reimburse the expenses. (615a)

Art. 720. If the owner should appear in time, he shall be obliged to pay, as a reward to the
finder, one-tenth of the sum or of the price of the thing found. (616a)

Title II. - INTELLECTUAL CREATION

Art. 721. By intellectual creation, the following persons acquire ownership:


(1) The author with regard to his literary, dramatic, historical, legal, philosophical, scientific or
other work;

(2) The composer; as to his musical composition;

(3) The painter, sculptor, or other artist, with respect to the product of his art;
(4) The scientist or technologist or any other person with regard to his discovery or invention.
(n)

Art. 722. The author and the composer, mentioned in Nos. 1 and 2 of the preceding article,
shall have the ownership of their creations even before the publication of the same. Once their
works are published, their rights are governed by the Copyright laws.
The painter, sculptor or other artist shall have dominion over the product of his art even before
it is copyrighted.

The scientist or technologist has the ownership of his discovery or invention even before it is
patented. (n)

Art. 723. Letters and other private communications in writing are owned by the person to
whom they are addressed and delivered, but they cannot be published or disseminated without
the consent of the writer or his heirs. However, the court may authorize their publication or
dissemination if the public good or the interest of justice so requires. (n)

Art. 724. Special laws govern copyright and patent. (429a)

Title III. - DONATION


CHAPTER 1
NATURE OF DONATIONS

Art. 725. Donation is an act of liberality whereby a person disposes gratuitously of a thing or
right in favor of another, who accepts it. (618a)
Art. 726. When a person gives to another a thing or right on account of the latter's merits or of
the services rendered by him to the donor, provided they do not constitute a demandable debt,
or when the gift imposes upon the donee a burden which is less than the value of the thing
given, there is also a donation. (619)

Art. 727. Illegal or impossible conditions in simple and remuneratory donations shall be
considered as not imposed. (n)

Art. 728. Donations which are to take effect upon the death of the donor partake of the nature
of testamentary provisions, and shall be governed by the rules established in the Title on
Succession. (620)

Art. 729. When the donor intends that the donation shall take effect during the lifetime of the
donor, though the property shall not be delivered till after the donor's death, this shall be a
donation inter vivos. The fruits of the property from the time of the acceptance of the
donation, shall pertain to the donee, unless the donor provides otherwise. (n)

Art. 730. The fixing of an event or the imposition of a suspensive condition, which may take
place beyond the natural expectation of life of the donor, does not destroy the nature of the
act as a donation inter vivos, unless a contrary intention appears. (n)

Art. 731. When a person donates something, subject to the resolutory condition of the donor's
survival, there is a donation inter vivos. (n)

Art. 732. Donations which are to take effect inter vivos shall be governed by the general
provisions on contracts and obligations in all that is not determined in this Title. (621)

Art. 733. Donations with an onerous cause shall be governed by the rules on contracts and
remuneratory donations by the provisions of the present Title as regards that portion which
exceeds the value of the burden imposed. (622)

Art. 734. The donation is perfected from the moment the donor knows of the acceptance by
the donee. (623)
CHAPTER 2
PERSONS WHO MAY GIVE OR RECEIVE A DONATION

Art. 735. All persons who may contract and dispose of their property may make a donation.
(624)
Art. 736. Guardians and trustees cannot donate the property entrusted to them. (n)

Art. 737. The donor's capacity shall be determined as of the time of the making of the donation.
(n)

Art. 738. Al those who are not specially disqualified by law therefor may accept donations.
(625)

Art. 739. The following donations shall be void:

(1) Those made between persons who were guilty of adultery or concubinage at the time of the
donation;

(2) Those made between persons found guilty of the same criminal offense, in consideration
thereof;

(3) Those made to a public officer or his wife, descedants and ascendants, by reason of his
office.

In the case referred to in No. 1, the action for declaration of nullity may be brought by the
spouse of the donor or donee; and the guilt of the donor and donee may be proved by
preponderance of evidence in the same action. (n)
Art. 740. Incapacity to succeed by will shall be applicable to donations inter vivos. (n)

Art. 741. Minors and others who cannot enter into a contract may become donees but
acceptance shall be done through their parents or legal representatives. (626a)

Art. 742. Donations made to conceived and unborn children may be accepted by those persons
who would legally represent them if they were already born. (627)

Art. 743. Donations made to incapacitated persons shall be void, though simulated under the
guise of another contract or through a person who is interposed. (628)

Art. 744. Donations of the same thing to two or more different donees shall be governed by the
provisions concerning the sale of the same thing to two or more different persons. (n)

Art. 745. 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. (630)

Art. 746. Acceptance must be made during the lifetime of the donor and of the donee. (n)

Art. 747. Persons who accept donations in representation of others who may not do so by
themselves, shall be obliged to make the notification and notation of which Article 749 speaks.
(631)

Art. 748. The donation of a movable may be made orally or in writing.

An oral donation requires the simultaneous delivery of the thing or of the document
representing the right donated.

If the value of the personal property donated exceeds five thousand pesos, the donation and
the acceptance shall be made in writing, otherwise, the donation shall be void. (632a)
Art. 749. In order that the donation of an immovable may be valid, it must be made in a public
document, specifying therein the property donated and the value of the charges which the
donee must satisfy.

The acceptance may be made in the same deed of donation or in a separate public document,
but it shall not take effect unless it is done during the lifetime of the donor.

If the acceptance is made in a separate instrument, the donor shall be notified thereof in an
authentic form, and this step shall be noted in both instruments. (633)

CHAPTER 3
EFFECT OF DONATIONS AND LIMITATIONS THEREON

Art. 750. The donations may comprehend all the present property of the donor, or part thereof,
provided he reserves, in full ownership or in usufruct, sufficient means for the support of
himself, and 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
in petition of any person affected. (634a)

Art. 751. Donations cannot comprehend future property.

By future property is understood anything which the donor cannot dispose of at the time of the
donation. (635)

Art. 752. The provisions of Article 750 notwithstanding, 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. (636)

Art. 753. 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. (637)

Art. 754. 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 obliged 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.
(638a)

Art. 755. 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. (639)

Art. 756. 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. (640a)

Art. 757. Reversion may be validly established in favor of only the donor for any case and
circumstances, but not in favor of 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. (614a)

Art. 758. 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 be liable to pay only the debts which appear to have been previously contracted. In no case
shall the donee be responsible for the debts exceeding the value of the property donated,
unless a contrary intention clearly appears. (642a)

Art. 759. 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 fraud of creditors, when at the time thereof the
donor did not reserve sufficient property to pay his debts prior to the donation. (643)

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