Balaqui v. Dongso

Summary

This case established the distinction between donations inter vivos and mortis causa under Philippine civil law. The Supreme Court held that a donation reserving possession and usufruct to the donor until death, but transferring ownership rights immediately with guarantee of title, constitutes a valid donation inter vivos rather than an invalid donation mortis causa. The key factor is the donor's intention and consideration - whether made in contemplation of death or out of generosity for services rendered. The case clarified that mere postponement of possession does not transform an inter vivos donation into a testamentary disposition requiring compliance with formal will requirements.