Romy and Lita donated five (5) parcels of land containing an area of 5,000sqm to a religious sect who considers Jos Rizal as a deity some time in 1989. The donation is for the construction of a church for the faithful to worship. Twenty (20) years later, Romy and Lita sold the donated parcels of land to Don Ado. Feeling aggrieved, the religious sect filed a complaint for the annulment of the sale to Don Alo alleging that it (the religious sect) is the rightful owner. During the trial of the case, it was proven that the religious sect was not registered as a corporation. Nevertheless, it insisted that they are a de facto corporation and therefore they are capable of being a donee 20 years ago.

1. If you were the judge, how would you resolve the case? State your reason
2. What are the circumstances where one can be considered a de facto corporation?