HANDOUT NO.

9S

Conditions and Warranties

A. Express Warranty – any affirmation of fact or any promise by the seller relating to
the thing if the natural tendency of such affirmation or promise is to induce the buyer
to purchase the same and if the buyer purchases the thing relying thereon (Art. 1546
NCC).

B. Implied Warranties (Art. 1547 NCC)

1. Implied warranty against eviction (Art. 1548 NCC); and

2. Implied warranty against hidden defect (Art. 1561 NCC).

Requisites of Lawful Eviction:

1. the purchaser is deprived in whole or in part of the thing purchased;

2. he is deprived by virtue of a final judgment (Art. 1557 NCC);
3. the judgment is based on a right prior to the sale or an act imputable to the
seller;
4. seller has been previously notified of the complaint for eviction at the
instance of the purchaser (Art. 1558 NCC); and
5. there is now waiver on the part of the purchaser.

Requisites for Recovery in case of Hidden Defect:

1. defect must be hidden;

2. defect must be important or serious;
3. defect must exist at the time of sale;
4. purchaser must give notice of the defect to the seller within a reasonable
time (Art. 1586 NCC);
5. there must be no waiver of the warranty on the part of the purchaser (Art.
1548, par. 3 NCC); and
6. action must be instituted within the statute of limitations [i.e. six months from
the delivery of the thing sold (Art. 1571 NCC) or within forty days from the
date of the delivery in case of animals (Art. 1577, par. 1 NCC)].

Seller must give in case of Eviction:

1. Value;
2. Income;
3. Costs;
4. Expenses; and
5. Damages, if the seller was in bad faith
Sources: Pointers in Bar Examination, Garcia, 1999 edition
The Law on Sales, Agency and Credit
Transactions, Hector S. de Leon, 1999 edition.
A. Villegas