Scribd
Upload
27 views4 pages

Sales Law (Last Part)

The document outlines the legal concepts of conditions and warranties in sales, detailing the implications of conditions not being met and the types of warranties, including express and implied warranties. It also covers buyer duties, seller remedies for breaches, special rules for real property, and the MACEDA Law regarding installment payments in real estate. Additionally, it discusses how sales can end, the assignment of credits, and the rules governing barter transactions.

Uploaded by

josephandrew.tungcab
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
27 views4 pages

Sales Law (Last Part)

The document outlines the legal concepts of conditions and warranties in sales, detailing the implications of conditions not being met and the types of warranties, including express and implied warranties. It also covers buyer duties, seller remedies for breaches, special rules for real property, and the MACEDA Law regarding installment payments in real estate. Additionally, it discusses how sales can end, the assignment of credits, and the rules governing barter transactions.

Uploaded by

josephandrew.tungcab
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

SALES LAW

CONDITIONS & WARRANTIES

Condition in a Sale

• A condition must happen first before a party is required to perform.

• If it doesn’t happen:

o A party may cancel the deal, or

o Still proceed (waive the condition).

• If someone promised the condition, breaking it can be breach of warranty.

Warranties

1. Express Warranty

• Seller’s promise or fact about the product that made the buyer decide to buy.

• Must be about the quality or title of the goods.

• Opinion ≠ Warranty unless from an expert.

2. Implied Warranties

(Assumed even if not written):

• No one else will take the item from the buyer (no eviction).

• The item has no hidden defects.

• It is fit or of good quality.

Eviction Warranty

• Buyer is kicked out of ownership by final court judgment.

• Seller must pay:

o Value of the thing,

o Any fruits/income lost,


o Legal costs,

o Damages (if bad faith),

o Contract expenses.

Waiver Types:

• Conciente: Buyer didn't know risk → Seller still pays value.

• Intencionada: Buyer knew risk → Seller not liable.

Hidden Defects

• Must be:

o Grave/important

o Hidden

o Already present when sold

Remedies (within 6 months):

1. Cancel sale (Accion Redhibitoria)

2. Reduce price (Accion Quanti Minoris)

Animals:

• If diseased = sale void.

• Seller liable if animal dies within 3 days due to existing disease.

Buyer Duties

1. Accept the item

2. Pay on time/place agreed

Payment and delivery usually happen at the same time unless agreed otherwise.

If Buyer Refuses to Accept

• Seller can:
1. Enforce the sale

2. Cancel the sale

Buyer’s Right to Examine

• Buyer has the right to check if the goods match the contract.

• Can’t inspect in "cash on delivery" unless allowed by custom or agreement.

Seller Remedies if Buyer Breaches

1. Specific Performance – demand payment

2. Rescission – cancel the sale

3. Damages – sue for losses

Special Rules for Real Property

• Rescission needs notarial or court notice.

• Buyer can still pay even after deadline until rescission is demanded.

MACEDA LAW (Real estate, installment basis only)

If buyer paid:

At least 2 years:

• 1-month grace period per year paid

• 50% refund + 5% per year after 5 years (max 90%)

Less than 2 years:

• 60 days to pay after due

• Seller can cancel after 30 days’ notice


HOW SALE ENDS

1. Like other obligations (e.g., payment)

2. Redemption (repurchase)

o Conventional: seller has the right to rebuy.

o Max: 10 years; Default: 4 years.

3. Legal Redemption: right to buy back land from new buyer (e.g., by co-owner or
neighbor).

Assignment of Credits

• Selling rights (not goods).

• Buyer of credit gets:

o All rights (like mortgages, pledges)

o Seller must inform debtor.

• Seller is responsible if:

o Credit was invalid (unless sold as doubtful)

o Debtor was insolvent (unless unknown)

Barter

• One thing is exchanged for another (not money).

• Same rules as sale apply.

You might also like