SUMMARY NOTES ON CHAPTER 4: OBLIGATIONS OF THE VENDOR
SECTION 3 - Conditions and Warranties (5) Warranty against redhibitory defects on
Art. 1545 animals
NOTE: Although a seller is bound by
implied warranties in law, nevertheless,
an agent of the seller may bind himself to
such warranties, by express contractual
stipulation.
SUBSECTION 1 – Warranty in Case of
Eviction
Art. 1548
Requisites:
In order that a vendor’s liability for
eviction may be enforced, the following
requisites must concur:
(1) There must be a final judgment
Art. 1546 : refers to express warranty (2) The purchaser has been deprived of
Express Warranty the whole or part of the thing sold
any affirmation of fact or any promise (3) Said deprivation was by virtue of a
by the seller relating to the thing if the right prior to the sale made by the
natural tendency of such affirmation or vendor
promise is to induce the buyer to (4) The vendor has been summoned
purchase the same, and if the buyer and made co-defendant in the suit for
purchases the thing relaying thereon eviction at the instance of the vendee
warranty created by the overt words
or actions of the seller Eviction
act or process of legally dispossessing
NOTE: A mere expression of opinion (no a person of land or rental property
matter how positively asserted) does not
import a warranty, unless the seller is an NOTE: The vendor’s liability for warranty
expert, and his opinion was relied upon by against eviction in a contract of sale is
the buyer. Misrepresentation made in waivable and may be renounced by the
good faith is not fraudulent but may vendee. As to the implied warranty in case of
constitute error. eviction, it is waivable and cannot be
invoked if the buyer knew of the risks or
Warranty danger of eviction and assumed its
a statement or representation made consequences.
by the seller of goods
contemporaneously Art. 1549
part of the contract of sale, having NOTE: The decision must be final
reference to the character, quality or
title of the goods, and by which he Art. 1550
promises or undertakes Prescription
insure that certain facts are or shall be the effect of the lapse of time in
as he then represents them creating and destroying rights
Art. 1547 Art. 1551
Implied Warranty NOTE: The non-payment of taxes due must
an obligation imposed by the law not be known to the vendee at the time of
when there has been no sale.
representation or promise
a warranty arising by operation of law Art. 1552
because the circumstances of a sale, Judgment Debt
rather than by the seller’s express debt that is evidenced by a legal
promise judgment or brought about by a
successful lawsuit against the debtor
Examples of implied warranties:
(1) Warranty that the seller has a right to sell Judicial Sale
(2) Warranty against eviction a sale conducted under the authority
(3) Warranty against non-apparent burden or of a judg-ment or court order
servitudes
(4) Warranty against hidden defects Art. 1553
SUMMARY NOTES ON CHAPTER 4: OBLIGATIONS OF THE VENDOR
Stipulation waiving obligation to answer award of costs (attorney’s fees) and
for eviction enforcement of the judgment
The buyer can waive the obligation of the
vendor to answer for eviction. The said Art. 1558
stipulation is void if the vendor acted in bad Rationale: In order to give the vendor an
faith. opportunity to intervene and defend the title
that he has transferred.
Art. 1554
Kinds of Waiver Art. 1560
(1) Waiver Consciente Servitude
the waiver is made by the vendee an encumbrance imposed upon an
without the knowledge of the risk of immovable for the benefit of another
eviction immovable belonging to a different
the vendor shall only pay the value owner
which the thing sold at the time of
eviction Warranty against Non-apparent burden
NOTE: In here, both parties are in good faith; or Servitude
however, the vendor shall pay the value of Requisites:
the thing sold to avoid unjust enrichment on (1) The immovable sold should be
the part of the vendor at the expense of the encumbered with any non-apparent
vendee. burden or servitude not mentioned in the
agreement
(2) Waiver Intencionada (2) The nature of the non-apparent burden or
the waiver is made by the vendee with servitude is presumed that the vendee
the knowledge of the risk of eviction would not have acquired it had he been
and assumed its consequences aware thereof
the vendor shall not be liable
Remedy where the immovable sold is
NOTE: In both consciente and intencionada, encumbered with non-apparent burden
the vendor must not have acted in bad faith. (1) Rescission
The presumption is waiver consciente where (2) Indemnity
both parties are in good faith.
Prescriptive Period
Art. 1555 within one year
Rescission is not a remedy in total to be computed from the execution of
eviction the dee, the vendee may bring the
rescission is not a remedy in case of action for rescission, or sue for
total eviction damages
rescission contemplates mutual
restitution NOTE: One year having elapsed, he may
both parties must be able to return only bring an action for damages within an
whatever they received under the equal period, to be counted from the date on
contract which he discovered the burden or servitude.
in total eviction, the vendee cannot
return the object of the contract of SUBSECTION 2 – Warranty Against
sale Hidden Defects of or Encumbrances
Upon the Thing Sold
Art. 1556 : speaks of partial eviction
Remedy in case of partial eviction Art. 1561
(1) Rescission Among the implied warranty provisions of
(2) Enforcement of vendor’s liability for the Civil Code are as to the:
eviction (1) Seller’s title (Art. 1548)
(2) Against hidden defects and
NOTE: In case of partial eviction, the vendee encumbrances (Art. 1561 & 1566)
can still return a portion of the remaining (3) Fitness of merchantability (Art. 1562)
object of sale; thus, rescission is allowed. (4) Against eviction (Art. 1548)
Art. 1557 Hidden Defect
Final Judgment a hidden defect is one which is
a court’s last action that settles the unknown or could not have been
rights of the parties and disposes of all known to the vendee
issues in controversy, except for the
SUMMARY NOTES ON CHAPTER 4: OBLIGATIONS OF THE VENDOR
the term “hidden faults or defects” The seller warrants that the thing sold is
pertains only to those that make the reasonably fit for the known particular
object of the sale unfit for the use for purpose for which it was acquired by the
which it was intended at the time of buyer.
the sale
Requisites:
Requisites: (1) Where the buyer, expressly or by
(1) The defect must be hidden implication, makes known to the seller the
(2) The defect must exist at the time of the particular purpose for which the goods
perfection of the contract of sale are acquired
(3) The defect renders the thing unfit for the (2) Where the buyer relies on the seller’s skill
use for which it is intended or judgment
(4) It must be instituted within the
prescriptive period Warranty of Merchantability or Implied
Warranty of Merchantability
“Unfit for the Use Intended”
the use must have been stated in the Merchant seller’s warranty: implied by
contract itself law (the thing sold is fit for its ordinary
can be inferred from the nature of the purpose)
object or from the trade or occupation
of the buyer The seller warrants that the goods are
reasonably fit for the general purpose for
Vendor is NOT liable which they are sold. The goods were brought
(1) Patent defects or those which may be by description.
visible
(2) Those which are not visible if the vendee NOTE: Where the goods are bought by
is an expert who, by reason of his trade or description from a seller who deals in the
profession, should have known them goods of that description, there is an implied
warranty that the goods are of merchantable
Hidden Defect quality.
one which is unknown or could not
have been known to the vendee Art. 1563
Under the law, the requisites to recover Sale of specified article under its patent
on account of hidden defects are as follows: or other trade name
(a) The defect must be hidden GR: There is no warranty as to its fitness for
(b) The defect must exist at the time the any particular purpose.
sale was made
(c) The defect must ordinarily have been XPN: Stipulation to the contrary
excluded from the contract
(d) The defect must be important (renders Art. 1565 : speaks of warranty of
thing UNFIT or considerably decreases merchantability
FITNESS) Art. 1566
(e) The action must be instituted within GR: The vendor is responsible to the vendee
the statute of limitations for any hidden defects, even though he was
not aware thereof.
NOTE: Remedy against violations of
warranty against hidden defect is either to XPN: If the contrary has been stipulated and
withdraw from the contract (accion the vendor was not aware of the hidden
redhibitoria) or to demand a proportionate defect.
reduction of the price (accion quanti
minoris). NOTE: If the vendee is aware of the defect in
the thing he buys or the lack of title in the
Art. 1562 vendor, he is deemed to have willfully and
Warranty of Fitness or Implied Warranty voluntarily assumed the risk attendant to the
of fitness for a particular purpose sale.
Warranty: imposed by law if the seller has Art. 1567
reason to know of the buyer’s special Remedies in Case of Hidden Defects
purpose for the item (the item is suitable for (1) Accion Redhibitoria or Withdrawal or
those purposes) Rescission plus damages
(2) Accion Quanti Minores or Proportionate
reduction in the price plus damages
SUMMARY NOTES ON CHAPTER 4: OBLIGATIONS OF THE VENDOR
been made, should be of such a nature
Remedies under 1567 are not exclusive that expert knowledge is not sufficient
The vendee’s remedies against a vendor to discover it
with respect to the warranties against hidden
defect of or encumbran-ces upon the thing Art. 1577
sold are not limited to those prescribed in Prescriptive Period
Article 1567 of the Civil Code. Forty days from the date of their delivery
to the vendee.
Art. 1568
Art. 1578
Art. 1569
Effect if the defective thing was lost
through a fortuitous event or through
buyer’s fault
The buyer may demand of the vendor the Animal
price which he paid, less the value which the dies within 3 days after its purchase
thing had when it was lost. The vendor shall be liable if the disease
which cause the death existed at the time
Art. 1571 of the contract and not at the time of
Prescriptive Period : Six (6) months from delivery.
delivery
Art. 1579
NOTE: The period of four (4) years, Effect of Rescission of sale of animal
provided in Art. 1389 of said Code, for “the with redhibitory defect
action to claim rescission,” applies to (1) The animal shall be return in the condition
contracts, in general, and must yield in the in which it was sold and delivered
instant case, to said Art. 1571, which refers (2) The vendee is answerable for any injury
to sales in particular. due to his negligence
Art. 1572 Art. 1580
GR: The redhibitory defect of one shall only Remedies in case of Hidden Defects
give rise to its redhibition, and not that of the (1) Accion Redhibitoria or Withdrawal or
others. Rescission plus damages
(2) Accion Quanti Minores or Proportionate
XPN: The vendee would not have purchased reduction in the price plus damages
the sound animal or animals without the
defective one. This is pre-sumed when a NOTE: The prescriptive period to exercise
team, yoke pair, or set is bought, even if a the two remedies above-stated is 40 days
separate price has been fixed for each one of from the date of delivery of the animals to
the animals composing the same. the vendee.
NOTE: The presumption is disputable Art. 1581 : refers only to the form to be
presumption. observed in the contract of sale of large
cattle
Art. 1574
Animals sold at fairs or at public
auctions or of live stock sold as
condemned
There is no warranty against hidden
defects.
Art. 1575
Void sale of animals
(1) The sale of animals suffering from
contagious diseases
(2) Sale of unfit animals
Art. 1576
Redhibitory Defect
if the hidden defect of animals, even in
case a professional inspection has
