This document summarizes key concepts regarding conditions and warranties in sales law. It discusses the differences between conditions and warranties, as well as express and implied warranties. Specifically, it outlines the implied warranties of eviction, hidden defects, fitness, and merchantability. It provides details on the essential elements and remedies for breaches of these warranties, including time periods to file claims. Overall, the document concisely summarizes important legal concepts relating to conditions and warranties in sales contracts.
This document summarizes key concepts regarding conditions and warranties in sales law. It discusses the differences between conditions and warranties, as well as express and implied warranties. Specifically, it outlines the implied warranties of eviction, hidden defects, fitness, and merchantability. It provides details on the essential elements and remedies for breaches of these warranties, including time periods to file claims. Overall, the document concisely summarizes important legal concepts relating to conditions and warranties in sales contracts.
This document summarizes key concepts regarding conditions and warranties in sales law. It discusses the differences between conditions and warranties, as well as express and implied warranties. Specifically, it outlines the implied warranties of eviction, hidden defects, fitness, and merchantability. It provides details on the essential elements and remedies for breaches of these warranties, including time periods to file claims. Overall, the document concisely summarizes important legal concepts relating to conditions and warranties in sales contracts.
(1458-1637) Atty. Amado R. Villegas, Jr. RFBT Reviewer / Professor I – FEU Manila Law on Sales (1545 - 1581)
Atty. Amado R. Villegas, Jr.
RFBT Reviewer / Professor I – FEU Manila Conditions and Warranties Condition v. Warranty Effect of non-fulfillment of condition Remedies 1. Refuse to proceed with the contract 2. Waive the condition
Can the non-fulfillment of the condition be treated
as a breach of warranty? Conditions and Warranties Express Warranty Implied Warranty (1546) (1547)
Caveat Emptor 1. Implied warranty
GR – Mere expression of an against eviction (1548) opinion by an ordinary 2. Implied warranty person does not import a warranty unless the seller is against hidden defect an expert and the opinion (1561) was relied upon by the 3. Implied warranty of buyer. (Sales’ Talk / Dealer’s fitness or merchantability Talk) (1562) Conditions and Warranties When implied warranty NOT applicable (1) “As is and where is” sale (2) Sale of second hand article (3) Sale by virtue of authority in fact or law (sheriff, auctioneer, mortgagee, pledgee, or other person professing to sell by authority in fact or law) Conditions and Warranties Essential elements of the implied warranty AGAINST EVICTION (1548) (1) The vendee is deprived in whole or in part of the thing purchased; (2) He is so deprived by virtue of a final judgment (1552); (3) The judgment is based on a right prior to the sale or an act imputable to the vendor; (4) The vendor was summoned in the suit for eviction at the instance of the vendee; and (5) There is no waiver on the part of the vendee Conditions and Warranties 1549 – Vendee has no duty to appeal from judgment 1551 – Deprivation for non-payment of taxes 1552 – Liability of judgment debtor (v. 1570 – judgment debtor not liable for hidden defect) 1555 – Vendee can demand VICED 1556- Partial eviction (Rescind or enforce warranty) 1558 – Formal summons to vendor essential 1559 – Vendor to be made a co-defendant Conditions and Warranties 1550 – Effect of prescription (10 yrs GF / 30 yrs BF) a. if completed before the sale b. if completed after sale (seller not liable) 1553 – Stipulation waiving warranty (Seller) * if seller acted in BF – liable 1554 – Kinds of waiver of eviction (buyer) a. waiver consciente (pay the value at the time of eviction) b. waiver intencionada (seller is not liable) Conditions and Warranties 1560 – Right of vendee where immovable sold encumbered with non-apparent burden a. Within one year to be computed from the execution of the deed, rescission or sue for damages b. One year having elapsed, action for damages counted from discovery of the burden When remedies NOT available (1) If burden is apparent (2) If non-apparent burden or servitude is registered (3) If the vendee had knowledge of the encumbrance Conditions and Warranties Implied Warranty (a) Merchantability – Goods are reasonably fit for the general purpose for which they were sold (b) Fitness - goods are suitable for the special purpose of the buyer Conditions and Warranties Implied Warranty Against Hidden Defect (Redhibitory) When is defect important? (1) it renders the thing sold unfit for the use for which it is intended (2) if it diminishes its fitness for such use to such extent that the vendee would not have acquired it had he been aware thereof When is defect hidden? (1) if it was not known / not visible (2) If the vendee is an expert Conditions and Warranties Caveat Emptor Caveat Venditor (1546) (1566) Express Warranty Hidden Defect Seller is not liable Seller is liable whether he knows it or not E – contrary stipulation and seller was not aware Conditions and Warranties Alternative Remedies of the buyer in case of hidden defect – (1) Accion Redhibitoria / Withdrawing from the contract (2) Accion Quanti Minoris / Proportionate reduction of the price
Period to file – 6 months from the delivery of
the thing sold (1571) Conditions and Warranties Effect of loss of thing sold on account of hidden defects (1568) a. Vendor was aware – b. Vendor was not aware - Effect of loss of defective thing sold (1569) - price which he paid, less the value which the thing had when it was lost (If seller in BF – damages) Sale of Animals 1572 – Sale of two or more animals together 1574 – sale of animals at fairs or at public auctions or as condemned 1575 – Sale of animals suffering from contagious diseases and unfit animals 1576 – Redhibitory defect of animals (if expert) 1577 – Period to file – 40 days 1578 – If animal dies within 3 days, LIABLE 1579 – Liability of buyer in case sale of animal rescinded 1580 – Alternative remedies (Withdrawal or Reduction) THANK Atty. Amado R. Villegas, Jr. Professor 1, Far Eastern University PRTC Reviewer YOU Bats CPAR Reviewer CTDI Reviewer PRIA Reviewer