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FACTS:
In 1930, the Sps. Eusebio De Castro and Martina Rieta, now both deceased,
executed a deed of donation in favor of the Roman Catholic Archbishop of Manila
covering Lot 626 in Kawit, Cavite with the condition that the done shall not
dispose or sell the property within a period of 100 years from the execution of
the deed of donation otherwise a violation would render it null and void and the
property would revert to the estate of the donors. In 1980, the Roman Catholic
Bishop of Imus, the administrator of all properties in the province of Cavite, sold
the property in favor of Sps. Florencio and Soledad Ignao. As a result, a TCT was
issued in favor of the spouses.
Marina Rieta Granados and Theresa Rieta Tolentino filed a complaint for
nullification of deed of donation, rescission of contract and reconveyance of real
property against Sps. Ignao and the R.C. Bishop of Imus and the R.C. Archbishop
of Manila.
The RTC dismissed the complaint on the ground of prescription which was
reversed by the CA thus the case at bar.
ISSUES:
(1) Whether or not the action has already prescribed
(2) Whether or not the condition is valid
2) Although the action may not be dismissed on the ground of prescription, it may
be dismissed on the ground of lack of cause of action. The cause of action was
based on a breach of the resolutory condition, however the condition is not valid
for being contrary to public policy. Donation is a mode of acquiring ownership
and it results in an effective transfer of title over the property from the donor to
the done. Although the donor may impose conditions in the deed of donation, it
must not be contrary to law, morals, good customs, public order and public
policy.
The condition in the case at bar, which is a prohibition of alienation for 100
years, is patently unreasonable and an undue restriction on the right of the done
to dispose of the property donated, which right is an indispensable attribute of
ownership. Since it is an considered as an illegal or impossible condition, it will
be considered as not having been imposed. Therefore no breach was committed.