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Kinds of Warranty

This document discusses warranties in contracts of sale under Philippine law. It defines express warranties as affirmations of fact or promises made by the seller to induce the buyer, and implied warranties that the law derives from the nature of the transaction. The key implied warranties in a sale are: (1) an implied warranty as to the seller's title, that the seller has a right to sell the item; (2) an implied warranty against hidden defects; and (3) an implied warranty of fitness or merchantability. Implied warranties do not apply to "as is" sales of used or surplus goods. Eviction refers to a buyer losing possession of the purchased item due to a

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Jodie Ann Pajac
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0% found this document useful (0 votes)
269 views

Kinds of Warranty

This document discusses warranties in contracts of sale under Philippine law. It defines express warranties as affirmations of fact or promises made by the seller to induce the buyer, and implied warranties that the law derives from the nature of the transaction. The key implied warranties in a sale are: (1) an implied warranty as to the seller's title, that the seller has a right to sell the item; (2) an implied warranty against hidden defects; and (3) an implied warranty of fitness or merchantability. Implied warranties do not apply to "as is" sales of used or surplus goods. Eviction refers to a buyer losing possession of the purchased item due to a

Uploaded by

Jodie Ann Pajac
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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1545. A condition, as used in Article 1545, means Kinds of warranty.

an uncertain event or contingency on the happening


of which the obligation (or right) of the contract Warranties by the seller may be express, as in the
depends. In such a case, the obligation of the above article, or implied, as in Article 1547. The
contract does not attach until the condition is seller is liable for his express warranties (Art.
performed. 1546.) and for the implied warranties of title (Art.
1547.), absence of hidden defects (Ibid.), fitness or
The term, in the context of a perfected contract of merchantability (Art. 1562.), description (Arts.
sale, pertains, in reality, to the compliance by one 1481, 1562.), and sample. (Arts. 1481, 1565.)
party of an undertaking, the fulfillment of which
would beckon, in turn, the demandability of the Meaning of express warranty.
reciprocal prestation of the other party. An express warranty is any affirmation of fact or
any promise by the seller relating to the thing, the
Effect of non-fulfillment of condition.
natural tendency of which is to induce the buyer to
A contract of sale may be absolute or conditional. purchase the thing and the buyer thus induced, does
(Art. 1458.) purchase the same.
(1) If the obligation1 of either party is subject to any Effect of express warranty.
condition and such condition is not fulfilled, such
party may either: Under the definition, statements not only relating to
quality or title of the thing but relating to other
(a) refuse to proceed with the contract; or incidents to it may be warranties. A warranty being
a part of the contract of sale, it is immaterial
(b) proceed with the contract, waiving the whether the seller did not know that it was true or
performance of the condition. false. No intent is necessary to make the seller liable
(2) If the condition is in the nature of a promise that for his warranty. It is the natural consequences of
it should happen, the non-performance of such what the seller says and the reliance thereon by the
condition may be treated by the other party as a buyer that alone are important.
breach of warranty.
Effect of expression of opinion.
 The right of a party to rescind an obligation A mere expression of opinion, no matter how
under Article 1191 of the Civil Code is positively asserted, does not import a warranty
predicated on the non-compliance by the unless the seller is an expert and his opinion was
other party with what is incumbent upon relied upon by the buyer. Thus, assertions that
him that violates the reciprocity between things are fine or valuable or better than products of
them. rival manufacturers are in their nature so dependent
1546. A warranty is a statement or representation on individual opinion that no matter how positive
made by the seller of goods, contemporaneously the seller’s assertion may be, they are not held to
and as a part of the contract of sale, having create a warranty.
reference to the character, quality, or title of the The tendency of the courts, however, is in the
goods, and by which he promises or undertakes to direction of greater strictness against the seller’s
insure that certain facts are or shall be as he then untruthful puffing of his wares. (see Ibid., pp. 517-
represents them. 518.)
Terminology used by parties not controlling. The following provisions of law are pertinent:
It is not necessary that the word “warranty” or “The usual exaggerations in trade, when the other
“warrant” be used by the seller to constitute a party had an opportunity to know the facts, are not
warranty. Any word is sufficient to show the in themselves fraudulent.” (Art. 1340.)
intention of the parties to consider the
representation or promise as an express warranty; “A mere expression of an opinion does not signify
and the fact that a stipulation in the contract of sale fraud unless made by an expert and the other party
is specially called a “warranty” does not of itself has relied on the former’s special knowledge.” (Art.
establish that the agreement thus referred to is a 1341.)
warranty.
“Misrepresentation made in good faith is not which that they are found and from the place
fraudulent but may constitute error.” (Art. 1343.) where they are located.
(2) Sale of second-hand articles. — There is
1547. An implied warranty is that which the law no implied warranty as to the condition,
derives by implication or inference from the nature adaptation, fitness or suitability for the
of the transaction or the relative situation or purpose for which made, or the quality of an
circumstances of the parties (Black L.D. vs. Estes, article sold as and for a second-hand article.
122 Ga. 807.), irrespective of any intention of the (3) Sale by virtue of authority in fact or law.
seller to create it. — No warranty of title is implied in a sale
Implied warranties in sale. by one not professing to be the owner.
Accordingly, the rule on implied warranty
The term implied warranty is reserved for cases does not apply to a sheriff, auctioneer,
where the law attaches an obligation to the seller mortgagee, pledgee or other person who
which is not expressed in any words. (1 Williston, sells by virtue of authority in fact or law.
op. cit., p. 498.) Implied warranties under Articles
1547 and 1562 are: 1548. Eviction may be defined as the judicial
process, whereby the vendee is deprived of the
(1) Implied warranty as to seller’s title. — that the whole or part of the thing purchased by virtue of a
seller guarantees that he has a right to sell the thing final judgment based on a right prior to the sale or
sold and to transfer ownership to the buyer who an act imputable to the vendor.
shall not be disturbed in his legal and peaceful
possession thereof (Art. 1548.); Essential elements of warranty against eviction.
(2) Implied warranty against hidden defects or The essential elements are:
unknown encumbrance. — that the seller (1) The vendee is deprived in whole or in part of the
guarantees that the thing sold is free from any thing purchased;
hidden faults or defects or any charge or
encumbrance not declared or known to the buyer (2) He is so deprived by virtue of a final judgment
(Art. 1561.); and (Art. 1557.);
(3) Implied warranty as to fitness or (3) The judgment is based on a right prior to the
merchantability. — that the seller guarantees that sale or an act imputable to the vendor;
the thing sold is reasonably fit for the known
particular purpose for which it was acquired by the (4) The vendor was summoned in the suit for
buyer or, where it was bought by description, that it eviction at the instance of the vendee (Art. 1558.);
is of merchantable quality. (Art. 1562.) and
(5) There is no waiver on the part of the vendee.
Nature of implied warranty.
An implied warranty is a natural, not an essential, Trespass contemplated by warranty against
element of a contract, because it is presumed to eviction.
exist even though nothing has been said in the Mere trespass in fact does not give rise to the
contract on the subject. It is, therefore, deemed as application of the doctrine of eviction. (see Art.
incorporated in the contract of sale. An implied 1590.) In such case, the vendee has a direct action
warranty may, however, be waived or modified by against the trespasser in the same way as the lessee
express stipulation. (see Arts. 1548, 1566.) has such right. (Art. 1664.)
When implied warranty not applicable The disturbance referred to in the case of eviction is
(1) “As is and where is” sale. — The phrase a disturbance in law which requires that a person go
“as is and where is” (which has been to the courts of justice claiming the thing sold, or
adopted from dispositions of army surplus part thereof, and invoking reasons. If final judgment
property) means nothing more than that the is rendered depriving the vendee of the thing sold or
vendor makes no warranty as to the quality any part thereof, the doctrine of eviction becomes
or workable condition of the goods, and that applicable.
the vendee takes them in the conditions in
1551. Deprivation for nonpayment of taxes.
Vendor’s liability is waivable. If the vendee is deprived of the ownership of the
property because it is sold at public for nonpayment
Warranty is not an essential element of a contract of of taxes due from the vendor, the latter is liable for
sale and may, therefore, be increased, diminished, eviction for an act imputable to him. It is required,
or suppressed by agreement of the parties. (Art. however, that at the time of the sale, the non-
1548, par. 3.) payment of taxes was not known to the vendee.
Any stipulation, however, exempting the vendor 1552. Liability of judgment debtor.
from the obligation to answer for eviction shall be
void if he acted in bad faith. (Art. 1553.) While the rule on implied warranty does not apply
to a sheriff who sells by virtue of authority in law
1549. Vendee has no duty to appeal from (Art. 1549, par. 2.), the judgment debtor is
judgment. responsible for eviction (Art. 1552.) and hidden
The vendee’s right against the vendor is not lost defects (Art. 1570.) even in judicial sales, unless
because he, the vendee, did not appeal. With a otherwise decreed in the judgment.
judgment becoming final whatever be the cause of Article 1552 is based on the general principle that a
finality, the requirement of the law is deemed person may not enrich himself at the expense of
satisfied. another. Thus, if the purchaser of real property sold
Furthermore, the vendor, having been notified of on execution be evicted therefrom because the
the action, could have very well followed up the judgment debtor had no right to the property sold,
case and made use of all possible remedies. If he the purchaser is entitled to recover the price paid
did not do that, he should suffer for his omission. with interest from the judgment debtor. If the sale
was effected by the judgment creditor, the latter
In reality, he does not have the right to demand of should not be permitted to retain the proceeds of the
the vendee such diligence that he himself did not sale, at the expense of the purchaser.
have and which he was more obliged to observe,
especially if the cause of eviction was anterior to 1553. Stipulation waiving warranty.
the sale. (1) Effect of vendor’s bad faith. — The vendor’s
1550. Effect of prescription. bad faith under Article 1553 consists in his knowing
beforehand at the time of the sale, of the presence of
By prescription, one acquires ownership and other the fact giving rise to eviction, and its possible
real rights through the lapse of time in the manner consequences. Thus, if the vendor after selling his
and under the conditions prescribed by law. In the property to another, sold it again to another
same way, rights and actions are lost by purchaser, he cannot even by stipulation, be exempt
prescription. from warranty against eviction, because he acted in
(1) Completed before sale. — The vendee may bad faith.
lose the thing purchased to a third person who has (2) Effect of vendee’s bad faith. — It is a requisite,
acquired title thereto by prescription. When however, that the vendee is not himself guilty of
prescription has commenced to run against the bad faith in the execution of the sale. If he knew the
vendor and was already complete before the sale, defect of title at the time of sale, or had knowledge
the vendee can enforce the warranty against of the facts which should have put him upon inquiry
eviction. In this case, the deprivation is based on a and investigation as might be necessary to acquaint
right prior to the sale and an act imputable to the him with the defects of the title of the vendor, he
vendor. cannot claim that the vendor has warranted his legal
(2) Completed after sale. — Even if prescription and peaceful possession of the property sold on the
has started before the sale but has reached the limit theory that he proceeded with the sale with the
prescribed by law after the sale, the vendor is not assumption of the danger of eviction. He is not,
liable for eviction. The reason is that the vendee therefore, entitled to the warranty against eviction,
could easily interrupt the running of the prescriptive nor is he entitled to recover damages.
period by bringing the necessary action.
1554. Kinds of waiver of eviction. incurred by the vendee in defending himself in the
action.
Article 1554 treats of two kinds of waiver, namely:
(4) Expenses of the contract. — In the absence of
(1) Consciente, that is, the waiver is voluntarily any stipulation to the contrary, the expenses in the
made by the vendee without the knowledge and execution and registration of the sale are borne by
assumption of the risks of eviction; and the vendor. However, if the vendee should have
(2) Intencionada, that is, the waiver is made by the paid for such expenses, he shall have the right to
vendee with knowledge of the risks of eviction and demand the same from the vendor.
assumption of its consequences. (5) Damages and interests. — The right of the
Effect of waiver by vendee vendee to demand “damages and interests and
ornamental expenses” is qualified by the condition
(1) If the waiver was only conscious, the vendor that the sale was made in bad faith. If good faith is
shall pay only the value which the thing sold had at presumed, the vendee is not entitled to recover
the time of eviction. This is a case of solutio damages unless bad faith on the part of the vendor
indebiti. is shown in making the sale.
(2) In the second kind of waiver, the vendor is Right of second purchaser to whom warranty
exempted from the obligation to answer for assigned.
eviction, provided he did not act in bad faith.
Where a warranty against eviction was expressly
Presumption as to kind of waiver. agreed upon in a contract of sale and the vendee
From the terms of Article 1554, every waiver is sold the same land to another expressly assigning to
presumed to be consciente while the contrary is not him the right to warranty, the second purchaser has
proven, but to consider it intencionada, it is a right of action against the first vendor to make
necessary besides the act of waiver that it be good the warranty against eviction.
accompanied by some circumstance which reveals 1556. Alternative rights of vendee in case of
the vendee’s knowledge of the risks of eviction and partial eviction.
his intention to submit to its consequences.
This article contemplates of partial eviction, while
1555. Rights and liabilities in case eviction occurs Article 1554 treats of total eviction. It states the rule
(1) Return of value of thing. — If at the time of that if there is partial eviction, the vendee has the
the eviction the value of the property is really more option either to enforce the vendor’s liability for
or less than its value at the time of the sale, by eviction (Art. 1555.) or to demand rescission of the
reason of improvements or deterioration, it is but contract.
just that the vendor should pay the excess or not The above rule is applicable —
suffer the damage.
(1) When the vendee is deprived of a part of the
(2) Income or fruits of thing. — The vendee is thing sold if such part is of such importance to the
liable to the party who won the suit against him for whole that he would not have bought the thing
the income or fruits received only if so decreed by without said part (par. 1.); or
the court. The obvious inference from this provision
is that to the vendee belongs the use, free of any (2) When two or more things are jointly sold
liability, of the subject matter of the sale. And this whether for a lump sum or for a separate price for
benefit is not by any means gratuitous. It is offset each, and the vendee would not have purchased one
by the use without interest of the money of the without the other. (par. 2.)
vendee by the vendor. Remedy of rescission not available in case of
(3) Costs of the suit. — The vendee is also entitled total eviction.
to recover expense of litigation resulting in eviction, In case the vendee is totally evicted from the thing
including the costs of the action brought against the sold, he cannot avail of the remedy of rescission,
vendor to enforce his warranty. “Costs of the suit” because this remedy contemplates that the one
mentioned does not include travelling expenses demanding it is able to return whatever he has
received under the contract. (Art. 1385.) This is not
so when the vendee loses only a part of the thing As previously stated, the notification required by
sold because there still remains a portion of the Article 1559 refers to a case where the vendee is the
thing. defendant in a suit instituted to deprive him of the
thing purchased.
1557. Final judgment of eviction essential.
The defendant vendee threatened with eviction who
The above article merely reiterates two of the wishes to preserve his right of warranty, should call
essential elements for the enforcement of warranty in the vendor to defend the action which has been
in case of eviction, namely: instituted against him.
(1) deprivation of the whole or of a part of the thing 1560. Where immovable sold encumbered with
sold; and (2) existence of a final judgment. (Art. non-apparent burden.
1548.)
(1) Right of vendee. — Although the vendee is not
Eviction may take place by virtue of a final deprived of the thing sold, totally or partially, the
judgment of an administrative office or board, and it vendee may still rescind the contract or ask for
is not indispensable that it be rendered by a court, indemnity, if the thing sold should be encumbered
provided it was rendered by competent authority with any non-apparent burden or servitude, not
and in conformity with the procedure prescribed by mentioned in the agreement of such a nature that the
law. vendee would not have acquired it had he been
1558. Formal summons to vendor essential. aware thereof.

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.”

When defect important. (1) Implied warranty of fitness. — There is no


implied warranty as to the quality or fitness
The defect is important if: (1) it renders the thing for any particular purpose of goods under a
sold unfit for the use for which it is intended; or (2) contract of sale, except as follows: where:
if it diminishes its fitness for such use to such an (a) the buyer, expressly or by implication,
extent that the vendee would not have acquired it manifests to the seller the particular purpose
had he been aware thereof or would have given a for which the goods are required, and (b) the
lower price for it. buyer relies upon the seller’s skill or
judgment. Then, whether he be the grower
When defect hidden.
or manufacturer or not — there is an implied
The defect is hidden (or latent) if it was not known warranty that the goods are reasonably fit
and could not have been known to the vendee. It is for such purpose.
one which is hidden to the eyes and cannot be (a) Particular purpose of goods. — It is not
discovered by ordinarily careful inspection or some purpose necessarily distinct from a
examination. Hence, there is no warranty if the general purpose.
defect is patent or visible.
(b) Test. — It is whether the buyer justifiably
Where defect patent or made known. relied upon the seller’s judgment that the
goods furnished would fulfill the desired 1563. Sale under a patent or trade name.
purpose, or whether relying on his own
judgment, the buyer ordered or bought what Under Article 1562(1), the buyer makes known to
is frequently called “a known, described, the sellerthe particular purpose for which the goods
and definite article.” are desired.

(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.

1578. Responsibility of vendor where animal


dies.
If the animal sold is suffering from any disease at
the time of the sale, the vendor is liable should it die
of said disease within three days from the date of
the sale (not date of delivery). This claim of the
vendee must be based on a finding of an expert that
the disease causing the death existed at the time of
the contract. If the death occurs after three days or
the defect is patent or visible, he is not liable. If the
loss is caused by a fortuitous event or by the fault of
the vendee, and the animal has vices, Article 1569
should be applied.
1579. Liability of buyer in case sale of animal is
rescinded.
If the vendee avails himself of the remedies granted
by Article 1567 (see Art. 1580.), the vendee must
return the animal in the condition in which it was
sold and delivered. In case of injury due to his
negligence, the vendee shall be responsible but this
would be no obstacle to the rescission of the
contract due to the redhibitory defect or fault of the
animal. (see Art. 1569.) Under Article 1556, the
buyer may not ask for rescission where he has
created new encumbrances upon the thing sold.

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