1. Express warranties
2. Implied warranties (Art. 1547) 3. Effects of warranties
4. Effects of waivers
5. Buyer’s options in case of breach of warranty (Art. 1599)
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TOPICS UNDER THE SYLLABUS L. WARRANTIES
1. Express warranties
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1. EXPRESS WARRANTIES I. Condition
1. When a contract contains a condition, the non happening of which would not constitute a breach but extinguishes the obligation 2. However, if party to the sales contract has
promised that the condition should happen or be performed, the non-performance of which may be treated by parties as breach
II. Warranties
A statement or representation made by the seller contemporaneously and as a part of the contract of sale, having reference to the character, quality, or title of the goods, and by which he promises or undertakes to insure that certain facts are or shall be as he then represents
Express Warranties REQUISITES:
1. It must be an affirmation of fact or any promise by seller relating to the subject matter of sale
2. Natural tendency of affirmation or promise is to induce buyer to purchase subject matter
3. Buyer purchases the subject matter relying thereon
4. When breached, seller is liable for damages
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TOPICS UNDER THE SYLLABUS L. WARRANTIES
2. Implied warranties
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2. Implied Warranties
Deemed included in all contracts of sale whether parties are actually aware or not, whether they were intended or not; by operation of law 1. Warranty that seller has a right to sell
Refers to consummation stage since in consummation stage, it is where ownership is transferred by tradition
Not applicable to sheriff, auctioneer, mortgagee, pledge
2. Warranty against eviction
a. Implied, unless contrary provision appears in contract
b. When ownership is transferred, buyer shall enjoy the legal and peaceful possession of the thing
c. Requisites of breach of warranty against eviction:
Buyer is evicted in whole or in part from the subject matter of sale
There is a final judgment
Basis of eviction is a right prior to sale or an act imputable to vendor
Seller has been summoned in the suit for eviction at the instance of buyer; or made 3rd party defendant
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through 3rd party complaint brought by buyer
Vendor’s liability shall consists of (Total Eviction) (VICED)
1. Value of the thing at the time of eviction;
2. Income or fruits if he has been ordered to deliver the to the party who won the suit 3. Cost of the suit
4. Expenses of the contract; and
5. Damages and interests if the sale was in bad faith
Partial Eviction
1. To enforce vendor’s liability for eviction (VICED);
2. To demand rescission of contract.
a. No appeal needed nor a need for buyer to resist eviction for right to accrue; it is enough that the aforementioned requisites are complied with
b. Warranty cannot be enforced until aforementioned requisites concur
c. Applies to judicial sale; judgment debtor responsible for eviction unless otherwise decreed in judgment
d. Vendor not liable for eviction if adverse possession had been commenced before sale but prescriptive period is completed after transfer
e. Rights of buyer when deprived of only part of the subject matter but would not have bought such part if not in relation for the whole:
1. Rescission
2. Mutual restitution
3. Warranty against encumbrances (non-apparent)
REQUISITES:
a. Immovable sold is encumbered with non–
apparent burden or servitude not mentioned in the agreement
b. Nature of non–apparent servitude or burden is such that it must be presumed that the buyer would not have acquired it had he been aware thereof
c. When breach of warranty exist: buyer may ask for rescission of indemnity
d. Warranty not applicable when non–
apparent burden or servitude is recorded in the Registry of Property – unless there is express warranty that the thing is free from all burdens and encumbrances
4. Warranty against hidden defects
SELLER does not warrant patent defect; caveat emptor
Except when hidden
1. subject matter may be movable or immovable
2. nature of hidden defect is such that it should render the subject matter unfit for the use of which it was intended or should diminish its fitness
3. had the buyer been aware, he would not have acquired it or would have given a lower price
a. When defect is visible or even if not visible but buyer is an expert by reason of his trade or profession, seller is not liable
b. Obligation of seller for breach depends on whether he has knowledge of such defect or not
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c. Seller is aware – seller should return price and refund expenses of contract with damages
d. Seller is not aware - seller should return price and interest and refund expenses (no damages)
e. Buyer may elect between withdrawing from contract or demanding proportionate reduction of price with damages in either case
f. Applicable to judicial sale except that judgment debtor not liable for damages g. Action to prescribe 6 months from
delivery of subject matter
5. Defects on animals
a. Even in the case of professional inspection but hidden defect is of such nature that expert knowledge is not sufficient to discover it - defect shall be considered as REDHIBITORY
b. If vet fails to discover through ignorance or bad faith, he is liable for damages c. Sale of animals on teams (2 or more)
When only one is defective, only one is prohibited and not the others
Exception: when it appears buyer would not have purchased the team without the defective one
Apply to sale of other things d. Animals at fair or public auction
No warranty against hidden defects e. Sale of animals with contagious disease
is void
f. Sale of unfit animals
Void if use / service for which they are acquired has been stated in the
contract and they are found to be unfit therefor
Prescription of action: 40 days from date of delivery to buyer
If sale is rescinded, animals to be returned in same condition when they were acquired; buyer shall answer for injury / loss due to his fault
Buyer may elect between withdrawing from sale and demanding proportionate reduction of price with damages in either case
Specific Implied Warranties in the Sale of Goods
A. Warranty as to fitness and quality;
requisites:
1. Buyer makes known to seller the particular purpose for which goods are acquired and it appears that the buyer relied on the seller’s skill or judgment 2. Goods are bought by description from
seller who deals in goods of that description
3. in case of sale of specified article under its patent or trade name, no warranty unless there is a stipulation to the contrary 4. measure of damage: difference between
value of goods at time of delivery and value they would have had if they had answered to the warranty
SALE OF GOODS BY SAMPLE
If seller is a dealer in goods of that kind, there is an implied warranty that the goods shall be free from defect rendering them unmerchantable which would not be apparent on reasonable examination of the sample
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