Kinds of Warranty
Kinds of Warranty
Another essential requisite before a vendor may be A servitude (or easement) is an encumbrance
legally liable for eviction is that, he should be imposed upon an immovable for the benefit of
summoned in the suit for eviction at the instance of another immovable belonging to a different owner.
the vendee. (2) When right cannot be exercised. — The
(1) Vendor to be made party in suit for eviction. alternative rights granted by Article 1560 cannot be
— The phrase “unless he is summoned in the suit exercised in the following cases:
for eviction” means that the vendor should be made (a) If the burden or servitude is apparent, that
a party to the suit either by way of asking that the is, “made known and is continually kept in
former be made a co-defendant (Art. 1559.) or by view by external signs that reveal the use and
the filing of a third-party complaint against said enjoyment of the same’’ (Art. 615, par. 4.);
vendor.
(b) If the non-apparent burden or servitude is
(a) Furnishing the vendor by registered mail with registered; and
a copy of the opposition the vendee filed in the
eviction suit is not the kind of notice prescribed (c) If the vendee had knowledge of the
by Articles 1558 and 1559. encumbrance, whether it is registered or not.
(b) It is evident that the notification must be (3) When action must be brought. — The action
given in the action brought by the third party for rescission or damages must be brought within
against the vendee, because it is there that the one year from the execution of the deed of sale. If
vendor must defend the vendee’s peaceful and the period has already elapsed, the vendee may
legal possession, for which he is responsible, and only bring an action for damages within one year
not in the action to enforce the warranty itself from the date of the discovery of the non-apparent
which already supposes the eviction. burden or servitude.
(2) Object of the law. — The object is to give the 1561. Definition of terms.
vendor an opportunity to intervene and defend the
title that he has transferred, for, after all, he alone (1) Redhibition is the avoidance of a sale on
would know the circumstances or reasons behind account of some vice or defect in the thing sold,
the claim of the plaintiff and be in a position to which renders its use impossible, or so inconvenient
defend the validity of his title. and imperfect that it must be supposed that the
buyer would not have purchased it had he known of
1559. Vendor to be made co-defendant. the vice.
(2) Redhibitory action is an action instituted to (1) A warranty, in general terms, does not cover
avoid a sale on account of some vice or defect in the defects which the buyer must have observed. Thus,
thing sold which renders its use impossible, or so if the seller of a horse which is obviously blind and
inconvenient and imperfect that it must be supposed which both parties know to be blind, says it is
that the buyer would not have purchased it had he sound, the meaning of “sound” as used in that
known of the vice. If the object is to procure the connection must be sound except as to its eyes.
return of a part of the purchase price paid by the
vendee, the remedy is known as accion quanti (2) The same rule is applicable to a defect which is
minoris or estimatoris. not obvious but of which the seller tells the buyer,
or which the buyer knows or should have known. A
(3) Redhibitory vice or defect is a defect in the well-recognized limitation on any doctrine freeing
article sold against which defect the seller is bound the seller from liability for statements or promises
to warrant. The vice or defect must constitute an in regard to obvious defects is that, if the seller
imperfection, a defect in its nature, of certain successfully uses art to conceal the defects, the
importance; and a minor defect does not give rise to seller is liable.
redhibition.
(3) As a general rule, there is no implied warranty
Requisites for warranty against hidden defects. against hidden defects in the sale of second-hand
goods. Again, as an exception, the seller shall be
The following requisites must concur for the liable if he has been shown to have made
existence of the warranty against hidden defects: misrepresentation or acted in bad faith.
(1) The defect must be important or serious; (4) The seller may bind himself against patent or
(2) It must be hidden; obvious defects (manifest upon casual inspection) if
the intent to do so is clearly evident. In such a case,
(3) It must exist at the time of the sale; the seller cannot allege as a defense that inspection
(4) The vendee must give notice of the defect to the (which the buyer failed to make) would have
vendor within a reasonable time disclosed the defect or that the buyer relied on his
own judgment.
(5) The action for rescission or reduction of the
price must be brought within the proper period — 6 1562. Implied warranties of quality.
months from the delivery of the thing sold or within Quality of goods includes their state or condition.
40 days from the date of the delivery in case of The purpose of holding the seller on his implied
animals warranties is to promote high standard in business
(6) There must be no waiver of warranty on the part and to discourage sharp deal-ings. They are based
of the vendee. on the principle that “honesty is the best policy.”
(2) Implied warranty of merchantability. — (1) By exactly defining what he wants, the buyer
Where goods are bought by description, the seller has exercised his own judgment instead of relying
impliedly warrants that the goods are of upon that of the seller. This definition may be given
merchantable quality. by means of a trade name or in any other way. The
description must be the buyer’s choice, or the goods
(a) Merchantability. — It is not a warranty of must not only be described and definite but known,
quality in the sense of requiring a particular grade, in order to preclude warranty of fitness.
but it does require identity between what is
described in the contract and what is tendered, in (2) Article 1563 provides an exception in case of “a
the sense that the latter is of such quality to have stipulation to the contrary.” Thus, there is still an
some value. implied warranty of fitness for particular purpose
where the buyer relied upon the seller’s judgment
b) Causes of unmerchantability. — Goods may be rather than the patent or trade name. “Particular
unmerchantable not because of any defect in their purpose,” as used in Article 1563, means a usage
physical condition but because of some other different from the ordinary uses the article was
circumstances, e.g., their infringement of made to meet.
trademarks of others renders them unsalable.
(3) The provision does not preclude an implied
(c) Saleability in a particular market. — The warranty of merchantability or fitness for a purpose
requirement of merchantable quality carries with it for which such specified article is ordinarily or
no implication that the goods shall be saleable in a generally sold. Thus, if the seller is a dealer in food,
particular market. and the buyer is buying for immediate consumption
and relies on the seller’s skill or judgment, there is
(d) Applicability to goods in that description. — an implied warranty that the article sold is fit for
It must be made clear that the warranty that the human consumption.
goods are of merchantable quality applies to all
goods bought from a seller who deals in goods in
that description, whether they are sold under a
patent or trade name or otherwise. 1564. Effect of usage of trade.
A warranty as to the quality or fitness for a
Warranty of merchantability distinguished from
particular purpose may be attached by usage to a
warranty of fitness.
contract containing no express provision in regard
A warranty of merchantability is a warranty that to warranty, though in the absence of usage no
goods are reasonably fit for the general purpose for warranty would be implied. The usage is relied on
which they are sold. On the other hand, a warranty for the purpose of showing the intention of the
of fitness is a warranty that the goods are suitable parties. If there is no usage, the parties would
for the special purpose of the buyer which will not naturally express their intention.
be satisfied by mere fitness for general purposes.
A usage in order to bind both parties must be known
Fitness for a particular purpose and to both or, if unknown to one, the other must be
merchantability. justified in assuming knowledge on the part of the
person with whom he is dealing.
It should be noticed that fitness for a particular
purpose may be merely the equivalent of 1565. Merchantability of goods sold by sample.
merchantability. Thus, the particular purpose for
which a reaping machine is generally designed is (1) Where sample not merchantable. — As a
reaping. If it will not fulfill this purpose, it is not general rule, all the buyer is entitled to, in case of a
merchantable. sale or contract to sell by sample, is that the goods
be like the sample, so he has no right to have the
goods merchantable if the sample which he has who buys without checking the vendor’s title takes
inspected is not. all the risks and losses consequent to such failure.
1567. Alternative remedies of the buyer to
enforce warranty.
(2) Where sample subject to latent defect. —
Where the defect in the goods is of such a character Under this article, the vendee has the option either:
that inspection will not reveal it, so in the case of a (1) to withdraw from the contract, or (2) demand a
sale by sample, if the sample is subject to a latent proportionate reduction of the price, with a right to
defect, and the buyer reasonably relies on the damages in either case. This first is known as accion
seller’s skill or judgment, the buyer is entitled not redhibitoria (action for rescission), while the second
simply to goods like the sample, but to goods like is known as accion quanti minoris. The remedies
those which the sample seems to represent, that is, are alternative as they are incompatible with each
merchantable goods of that kind and character. other. The same right is given to the vendee in the
sale of animals with redhibitory defects.
1566. Responsibility of vendor for hidden
defects. The vendee must present proof that he suffered
damage as a result of the breach of the vendor’s
(1) Effect of ignorance of vendor. — The warranty to be entitled to actual damages.
ignorance of the vendor does not relieve him from
liability to the vendee for any hidden faults or Note: The word “and” before “demanding” in
defects in the thing sold. In other words, good faith Article 1567 should read “or.”
cannot be availed of as a defense by the vendor.
1568. Effect of loss of thing sold on account of
(2) Exception. — The parties, however, may hidden defects.
provide otherwise in their contract provided the
vendor acted in good faith, that is, he was unaware (1) Vendor aware of hidden defects. — If the
of the existence of the hidden fault or defect. vendor was aware of the hidden defects in
consequence of which the thing sold was lost, he
(3) Where vendee aware of the defect. — If the shall bear the loss because he acted in bad faith. In
vendee is aware of the defect in the thing he buys or such case, the vendee has the right to recover:
lack of title in the vendor, he cannot later complain
thereof. He is deemed to have willfully and (a) the price paid;
voluntarily assumed the risk attendant to the sale. (b) the expenses of the contract; and
Doctrines of “caveat venditor” and “caveat (c) damages.
emptor.”
(2) Vendor not aware of hidden defects. — If the
At early common law, the implied warranty of vendor was not aware of them, he shall be obliged
quality was not recognized and the rule was then only to return:
caveat emptor3 (let the buyer beware). The seller’s
liability for defects of the goods sold was then (a) the price paid;
confined to cases of express promise to warrant the (b) interest thereon; and
quality of such goods and to those in which the
seller had knowledge of the hidden defects and the (c) expenses of the contract if paid by the
sale was made without the seller revealing them, but vendee. He is not made liable for damages
in the latter cases, the basis of the seller’s liability because he is not guilty of bad faith.
was for fraud.
1569. Effect of loss of defective thing sold.
The doctrine of caveat venditor (let the seller
If the thing sold had no hidden defects, its loss
beware) was adopted in accordance with which “the
through a fortuitous event or through the fault of the
vendor is liable to the vendee for any hidden faults
vendee is, of course, to be borne by the vendee.
or defects in the thing sold, even though he was not
However, the vendor is obliged to return the price
aware thereof.”
paid less the value of the thing at the time of its loss
The rule of caveat emptor requires the purchaser to in case where hidden defects existed. In other
be aware of the supposed title of the vendor and one
words, under Article 1569, the vendor is still made 1572. Sale of two or more animals together.
liable on his warranty.
When two or more animals have been sold at the
1570. Warranty in judicial sales. same time and the redhibitory defect is in one, or
some of them but not in all, the general rule is that
(1) As to judgment debtor. — In a judicial sale, it is the redhibition will not affect the others without it.
not really the sheriff who sells but the judgment It is immaterial whether the price has been fixed for
debtor. Hence, the provisions regarding warranty a lump sum for all the animals or for a separate
are also applicable to judicial sales. price for each.
(2) As to government. — In judicial sales, the The exception is when it can be shown by the
principle of caveat emptor applies, according to vendee that he would not have purchased the sound
which the purchaser acquires by his purchase no ones without those which are defective. Such
higher or better title or right than that of the intention need not be established by the vendee but
judgment debtor. If the latter has no right, interest, shall be presumed when a team, yoke, pair or set is
or lien in and to the property sold, the purchaser bought unless the vendor proves the contrary.
acquires none.
Right of purchaser in judicial sales.
Although Article 1572 provides only for redhibitory
(1) The purchaser of property on sale under actions, it does not bar the right of the vendee to
execution and levy takes as assignee only. Indeed, bring an action quanti minoris.
at a sheriff’s sale what is sold is not the property
advertised, but simply the interest of the debtor in 1573. Sale of two or more things together.
the property; if it afterwards develops that he has
none, the purchaser is still liable on his bid because The points considered in the preceding article apply
he has offered so much for the debtor’s interest in also to sale of two or more things where only one or
open market and it is for him to determine before he more of them but not all have hidden defects.
bids what the debtor’s interest is worth. 1574. Sale of animals at fairs or at public
(2) Where a judicial sale is voided or set aside auctions or as condemned.
without fault of the purchaser, the latter is entitled This article is a limitation to the provisions of
to reimbursement of the purchase money paid by Article 1570. It is based on the assumption that the
him subject to set-off for benefits enjoyed while he defects must have been clearly known to the buyer.
had possession of the property. As a general rule, a
judicial sale can only be set aside upon the return to Since the law does not make any distinction, the
the buyer of the purchase price with simple interest public auctions referred to may be judicial or
and other expenses incurred by him. He is extrajudicial. Sale of animals as condemned
ordinarily entitled to a lien on the property until he precludes all idea of warranty against hidden
is repaid whatever may be due him. defects. Such animals are bought not because of
their quality or capacity for work.
1571. Prescription of actions in cases of
implied/express warranty. 1575. When sale of animals void.
(1) The action for rescission of the contract or The article declares the class of animals which
reduction of the purchase price (Art. 1567.) cannot be the object of commerce — animals
prescribes six months from the date of delivery of suffering from contagious diseases and those found
the thing sold. Outside this period the action is unfit for the use or service stated. The sale of such
barred. It follows that a vendee should not be animals is void as against public interest and not
permitted to offer as a defense, hidden defects in the merely subject to rescission or reduction of the
thing sold six months after he had received it. price. (Art. 1567.) It is to be governed by the rules
relating to nullity of contracts. Even if the animals
(2) With respect to an express warranty, in are found fit for the use or service stated in the
accordance with the general rule on rescission of contract, the vendee may still rescind the contract
contract, the prescriptive period which is four (4) under Article 1561.
years, shall apply.
1576. What constitutes redhibitory defect of 1580. Alternative remedies of vendee in sale of
animals? animals.
Article 1576 is another rule especially applicable to The vendee has the same right to bring at his option,
animals. To be considered redhibitory, the defect either a redhibitory action or an action quanti
must not only be hidden. It must be of such a nature minoris. The action must be brought within forty
that expert knowledge is not sufficient to discover days from the date of the delivery of the animals to
it. However, if the veterinarian failed to discover it the vendee. (Art. 1577.)
through his ignorance or failed to disclose it to the
vendee through bad faith, he shall be liable for 1581. Form of sale of large cattle.
damages. The responsibility is his and not the The special law governing the sale of large cattle is
vendor’s. Act No. 4117, now found in Sections 511 to 536 of
the Revised Administrative Code, as amended,
1577. Limitation of action in sale of animals.
providing for the registration, branding,
The redhibitory action based on the faults of conveyance, and slaughter of large cattle. The sale
animals shall be barred unless brought within forty must appear in a public document. (see Art. 1358.)
days from the date of their delivery to the vendee.
According to the second paragraph, what should be
considered redhibitory defects in the sale of animals
are only those determined by law or by local
customs. If the defects are patent, there is no
warranty against such defects although there exists
a redhibitory vice.