G.R. No. 42619 ; March 11, 1937
NICOLAS MACAM, as testamentary executrix of the estate of the deceased Leonarda Macam, plaintiff-appellant, vs. JUANA GATMAITAN and MAGNO S. GATMAITAN, defendants-appellees.

FACTS

Leonarda Macam and Juana Gatmaitan, who lived together as friends, purchased a house. Although the purchase price came exclusively from Leonarda, the deed of sale named both as vendees. Later, they executed a document stating that the house was paid for by Leonarda and belonged to her, while a Buick automobile and most furniture belonged to Juana. The document further provided that whoever died first would leave her contributed property to the survivor, with the survivor’s ownership to be respected by their heirs. Leonarda predeceased Juana. The executrix of Leonarda’s estate filed an action to recover ownership of the house, contending the document was an invalid donation mortis causa for lack of testamentary formalities.

ISSUE

Whether the document executed by Leonarda Macam and Juana Gatmaitan is a void donation mortis causa or a valid contract.

RULING

The document constitutes a valid aleatory contract, not a donation mortis causa. Under Article 1790 of the Civil Code, an aleatory contract is one where the parties reciprocally bind themselves to give or do something in exchange for what the other is to give or do upon an uncertain event. Here, Leonarda and Juana reciprocally bound themselves to transfer ownership of their respective properties (the house, and the automobile and furniture) conditioned upon who died first. Since the contract was binding and Leonarda died first, Juana validly acquired ownership of the house. The appealed judgment absolving the defendants was affirmed.

AI Generated by Armztrong.