Donation is a common legal mechanism that nonetheless raises several questions. Under what conditions can one give property? What limits are set by law? And above all, what rights and obligations arise from a donation?

In this article, we present an overview of the main rules of the Civil Code of Quebec governing donations. This will help you better understand the implications and necessary precautions before considering such an act.

What is a donation?

According to section 1806 C.C.Q., donation is a contract by which a person, the donor, transfers ownership of property free of charge to another person, called the donee.

A donation can take two main forms :

• Inter vivos donation (s. 1807 C.C.Q.) : it results in an immediate and irrevocable transfer of the property. The donor therefore disposes of it in the present moment.
• Donation mortis causa (s. 1808 C.C.Q.) : it takes effect only upon the donor’s death. It is treated as a legacy and thus follows specific rules.

Different forms of donation

The Code provides for several variants of donation :

• Remunerative donation (s. 1810 C.C.Q.) : made as compensation for a service or burden. It counts as a donation only for the part that exceeds the value of what was received.
• Indirect or disguised donation (s. 1811 C.C.Q.) : for example, when property is sold at a symbolic price.
• Promise of donation (s. 1812 C.C.Q.) : it does not amount to a donation but allows the beneficiary to claim damages if it is not fulfilled.

Who can give and receive?

The legislator sets certain limits to protect vulnerable individuals :

• A minor or an adult under tutorship may only give property of low value or customary gifts (s. 1813 C.C.Q.);
• Their representatives (parents, tutors, mandataries) may accept a donation on their behalf (s. 1814 C.C.Q.);

Validity and form of donation

Certain conditions are strictly regulated to ensure the validity of a donation :

• Inter vivos donation may apply only to present property (s. 1818 C.C.Q.);
• It must be made by notarial deed in minute form and published to be valid (s. 1824 C.C.Q.), except in the case of movable property handed over immediately;
• An inter vivos donation stipulated as revocable at the donor’s discretion is null (s. 1822 C.C.Q.).

Rights and obligations of the parties

Donation entails obligations for both the donor and the donee :

• The donor must deliver the property free of any obstacle (s. 1825 C.C.Q.) and pay the costs of the contract (s. 1829 C.C.Q.);
• The donee accepts the charges attached to the property (s. 1833 C.C.Q.) and pays the costs related to its removal;
• In cases of gravely reprehensible behavior by the donee toward the donor, the donation may be revoked for ingratitude (ss. 1836 et seq. C.C.Q.).

Donations within marriage or civil union

The Code also provides for the possibility of making donations in a marriage or civil union contract (ss. 1839 et seq. C.C.Q.). These donations may be inter vivos or mortis causa. However, they must comply with strict conditions regarding eligible beneficiaries, such as spouses or children.

Conclusion

A donation may seem simple, as it consists of giving property free of charge. However, it is actually governed by a set of strict rules designed to protect both donor and donee. Depending on the type of donation and the parties’ situation, the form and conditions of validity may vary considerably.

If you are considering making or receiving a donation, it is strongly recommended to consult a legal professional. Contact our firm to obtain personalized advice on civil law and donation matters. Our team will guide you to secure your process and prevent any future disputes.