De Luna v.

Abrigo
G.R. No. L-57455
January 18, 1990

Facts:
Prudencio de Luna donated a portion his lot to the Luzonian Colleges. The donation was subject
to the condition that the school shall construct at its own expense a Chapel, a Nursery and
Kindergarten School with specifications on how they shall be made and that the construction
should be finished within 5 years from the execution of the deed of donation. It also provided for
automatic reversion of the donated area to the donor, his heirs, assigns and representatives in
case of non-fulfilment of the said conditions. Thereafter, Prudencio died leaving his children as
his only heirs. Subquently, his children filed a complaint with the RTC alleging that the terms
and conditions of the donation were not complied with by the school and prayed for the
cancellation of the donation and the reversion of the donated land to them. The RTC dismissed
the petition on the ground of prescription (for being filed after 4 years). The heirs did not file an
MR and went straight to the SC.

Issue:
Whether or not the action prescribes in 4 years based on the law on donations or in 10 years
based on the law on contracts

Ruling:
The donation subject of this case is one with an onerous cause.

Article 764 of the New Civil Code on Donations provide 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. However, said article does not apply to onerous donations in view of the specific
provision of Article 733 providing that donations with an onerous cause are governed not by the
law on donations but by the rules on contract. Hence, on the matter of prescription of actions for
the revocation of onerous donation, it was held that the general rules on prescription apply. The
rules on contracts and the general rules on prescription and not the rules on donations are
applicable in the case at bar. The trial court was therefore not correct in holding that the
complaint in the case at bar is barred by prescription under Article 764 of the New Civil Code
because Article 764 does not apply to onerous donations.