lOMoARcPSD|9903054

Chapter 2-4 - For Law on Sales by Domingo (Rex Bookstore),

summarized version
Accounting (Far Eastern University)

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Chapter 2- Capacity to buy or sell + In a contract of agency, after the termination of the relationship the
agent is not prohibited to purchase a property belonging to the former
GR: All persons, whether natural or juridical, who can bind themselves
principal.
have legal capacity to enter into a contract of sale.
Chapter 3- Effects of the contract when the thing sold has been lost
EXC: Persons who are incapacitated
Loss of the object at the time of perfection of the contract
Kinds of Incapacitated
1. Completely Lost
1. Absolute Incapacity
- If the thing which is the object of the contract has been entirely
- These are the persons who cannot enter into a contract of sale in
lost, the contract shall be w/o any effect.
all circumstances; otherwise, the contract of sale is defective,
- The reason is because there is an absence of an essential
either voidable or unenforceable.
element, that is, the object.
- Ex. Minors, insane, demented persons and deaf-mutes who do
2. Partially Lost
not know how to write.
- If the thing should have been lost in part only, the vendee may
2. Relative Incapacity
choose between:
- These are certain persons, under circumstances, cannot buy
a. Withdrawing from the contract
certain property.
b. Demanding the remaining part, paying its price in proportion
- Ex. Husband and wife, the guardian, agents, executors and
to the total sum agreed upon.
administrators, Public officers and employees, Justices, judges ,
prosectuing attorneys. + Where the parties purport a sale of specific goods, and the goods w/o
the knowledge of the seller have perished in part or have wholly or in a
Necessaries
material part so deteriorated in quality as to be substantially changed
- These covers everything indispensable for sustenace, dwelling in character, the buyer may at his option treat his sale:
clothing, medical attendacnce, education and transportation.
1. As avoided
GR: The husband and wife cannot sell property to each other. 2. As valid in all of the existing goods or in so much thereof as have
not deteriorated, and as binding the buyer to pay the agreed price for
EXC: the goods in which the ownership will pass, if the sale was divisible.
1. When a separation of property was agreed upon in the marriage
settlements
2. When there has been a juridical separation of property.
NOTE: The prescription against sale of property between spouses applies
even to common law relationship.

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2. Contract to sell
3. Sale on approval, trial or satisfaction
4. Implied reservation of ownership.
Chapter 4- Obligations of the Vendor
PAYMENT OF THE PURCHASE PRICE IS NOT ESSENTIAL TO
Obligations of the vendor THE TRANSFER OF OWNERSHIP AS LONG AS THE PROPERTY
SOLD HAS BEEN DELIVERED.
1. Transfer ownership of the sold
2. Deliver the thing Kinds of Delivery
3. Warrant the object sold against eviction and hidden defects
1. Real or Actual Delivery
4. Take care of the object sold pending delivery
- The thing sold is placed in the control and possession of the vendee.
5. Pay for the expenses for the execution and registration of the
2. Legal or Constructive
contract of sale unless there is a stipulation to the contrary.
- A delivery by operation of law
Delivery 3. Quasi- Tradition
- Delivery of rights, credits or incorporeal property, made by:
- The concurrent transfer of two things 1. Possession and 2. Ownership. a. Execution of public instrument
- A composite act, a thing in which both parties must join and the minds b. Placing of titles of ownership in the hands of buyer
of both parties concur. c. Allowing buyer to make use of rights.
- An act by which one party parts with the title to and the possession of
the property and the other acquires the right to and the possession of the Kinds of Legal/ Constructive Delivery
same.
a. Legal Formalities
Ownership does not pass by mere stipulation but only by delivery. - When the sale is made through a public instrument
b. Symbolical Tradition or Traditio Simbolica
“The delivery of the thing… signifies that title has passed from the seller to - The parties use a symbol to represent the thing delivered.
the buyer.” c. Traditio Longa Manu ( Long Hand)
Actual Delivery - The delivery is by mere consent or agreement of the contracting
parties, where the seller points out to the buyer the object of sale
- Occurs when it is placed under the control and possession of the without the need of actually delivering it.
vendee. d. Traditio Brevi Manu ( Short Hand)
GR: Ownership of the thing sold is acquired only upon its delivery, actual - Occurs when the would be buyer had already the possession of the
or constructive, to the buyer. object even before the contract of sale by virtue of another title which is
not ownership ( like a lessee in a contract of lease), and pursuant to a
EXC: contract of sale, he would now hold possession in the concept of an
1. When the seller and the buyer agree that the ownership shall remain owner (like a buyer of a house where he was a former lessee of the
with the seller until the full payment of the purchase price. same house)

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- Opposite of constitutum possessorium. 1. Execution of public instrument

e. Traditio Constitutum Possessorium
- The delivery consists in the owner’s continuous possession of the
property he had already sold to another person but his present
possession is no longer that of an owner but under another capacity like
that of a lessee
- Opposite of traditio brevi manu.
When the sale is made through public instrument
- The execution thereof shall be equivalent to the delivery of the thing
which is the object of the contract, if from the deed the contrary does
not appear or cannot clearly be inferred.
Public Instrument
- A document prepared by a notary public in the presence of the parties
who sign it before witnesses.
Notary Public
- A person authorized by a state to administer oaths, certify documents,
attest to the authenticity of signatures, and perform official acts in
commercial matters.
There is a symbolic delivery of the property subject of the sale by the
execution of the public instrument.
GR: The execution of a public instrument amounts to a constructive
delivery of the thing subject to a contract of sale.
EXC: When mere presumptive and not conclusive delivery is created in
cases where the buyer fails to take material possession of the subject of sale.
A person who does not have actual possession of the thing sold cannot
transfer constructive possession by the execution and delivery of a public
instrument.
Delivery of incorporeal property
2. The placing of the titles of ownership in the possession of the
vendee
3. The use by the vendee of his rights, with the vendor’s consent.
Sales on Approval
- “Sale on Acceptance”, “Sale on Trial,” Sale on Satisfaction,”
- No transfer of ownership notwithstanding delivery of the goods.
- Ownership passes to the buyer only in the following instances:
o When the buyer signifies his approval or acceptance to the seller
or does any other act adopting the transaction
o If the buyer does not signify his approval or acceptance to the
seller, but retains the goods without giving notice of rejection,
then if a time has been fixed for the return of the goods, on the
expiration of such time, and, if no time has been fixed, on the
expiration of a reasonable time.
- Risk of loss remains with the seller
Sale or Return
- The ownership passes to the buyer on delivery.
- Subsequent return of the goods reverts ownership in the seller
- Need ng express agreement sa sale or return at on approval
- Risks of loss rests upon the buyer
GR: Where goods are sold by a person who is not the owner thereof, and
who does not sell them under authority or with the consent of the owner, the
buyer acquires no better title to the goods than the seller had.
EXC:
1. The owner of the goods is by his conduct precluded from denying
the seller’s authority to sell.
2. A provision of law enables the apparent owner of goods to dispose
of them as if he were the true owner thereof

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3. The validity of any contract of sale under statutory power of sale or Warehouse Receipt
under the order of a court of competent jurisdiction
- Document evidencing title to goods stored with someone else.
4. Purchases made in a merchant’s store, or in fairs, or markets, in
accordance with the Code of Commerce and special laws Negotiable Document of title
5. Where the seller of goods has a voidable title thereto.
- A document of title that actually stands for the goods it covers, so that
any transfer of the goods requires a surrender of the gdocument.
- Document of title in which it is stated that the goods referred to therein
Document of title to goods
will be delivered to the bearer, or to the order of any person named in
- Includes any bill of lading, dock warrant, “quedan”, or warehouse such document.
receipt or order for the delivery of goods, or any other document used
Document is negotiable if:
in the ordinary course of business in the sale or transfer of goods.
1. The goods are deliverable to bearer
Goods
2. The goods are deliverable to the order of a certain person.
- Includes all chattels personal but not things in action or money of legal
tender in the Philippines.
- Includes growing fruits or crops Non- negotiable document of title
Bill of Lading - A document of title that merely serves as evidence of the goods it
covers.
- A document acknowledging the receipt of goods by a carrier or by the
shipper’s agent and the contract for the transportation of those goods Bailee
- A document that indicates the receipt of goods for shipment and that
issued by a person engaged in the business of transporting or - Someone who receives personal property from another, and has
forwarding goods possession of but not title to the property.
- A document that serves as evidence of receipt of goods for shipment - Responsible for keeping the property safe until it is returned to the
issued by a common carrier. owner.
- Someone who by warehouse receipt, bill of lading or other document of
Dock Warrant title acknowledges possession of goods and contracts to deliver them.
- Interim Document issued by a maritime carrier to evidence the delivery 2 kinds of Negotiation
of goods at the dock
- Warrant given by dock-owners to the owner of merchandise imported 1. Delivery
and warehoused on the dock. - Where by the terms of the document, the one issuing the same
undertakes to deliver the goods to the bearer
Quedan 2. By indorsement and delivery
- The endorsement may be in blank, to bearer, or to a specified person.
- A warehouse receipt that covers sugar.

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Non-negotiable document- Cannot be negotiated. Effect of Transfer of a NEGOTIABLE document of title w/o
endorsement
Who can negotiate on a negotiable document?
- The transferee acquires a right against the transferor to compel him to
1. The owner of the negotiable document of title
endorse the document unless a contrary intention appears.
2. Any person to whom the possession or custody of the document has
been entrusted by the owner, if:
a. By the terms of the document the bailee issuing the document
undertakes to deliver the goods to the order of the person to
whom the possession or custody of the document has been Warranties on Negotiation or Assignment
entrusted.
b. If at the time of such entrusting the document is in such form 1. That the document is genuine
that it may be negotiated by delivery. 2. He has a legal right to negotiate or transfer it
3. He has knowledge of no fact which would impair the validity worth
Effects of Negotiation of the document
4. He has a right to transfer the title to the goods
A person to whom a negotiable document of title has been
5. The goods are merchantable or fit for a particular purpose.
negotiated acquires:
Negotiation
a. Title to the goods as the person negotiating the document to him
had or had ability to convey to a purchaser in good faith for value - The transfer of possession of an instrument, whether voluntary or
and also such title to the goods as the person to whose order the involuntary, by a person other than the issuer to a person who thereby
goods were to be delivered by the terms of the document had or had becomes its holder.
ability to convey to a purchaser in good faith for value.
b. The direct obligation of the bailee issuing the document to hold Assignment
possession of the goods for him according to the terms of the - The transfer of rights or property.
document as fully as if such bailee had contracted directly with him.
Effect of Failure of Bailee or previous endorsers to fulfill their
Effects of Transfer (Not Negotiation) obligations
A person to whom the document is assigned acquires: - It shall not make the present endorser liable.
1. The title to the goods, subject to the terms of any agreement with the GR: No attachment
transferor
2. The right to notify the bailee who issued the document of the EXC:
transfer and also acquire the direct obligation of such bailee to hold 1. The document be first surrendered to the bailee
possession of the goods for him according to the terms of the 2. The documents negotiation is enjoined
documents.

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GR: The bailee shall in no case be compelled to deliver up the actual 4. In case of a contract of sale of specific goods, which to the
possession of the good. knowledge of the parties when the contract or the sale was made
were in some other place, then that place is the place of delivery.
EXC:
Time of Delivery
1. The document is surrendered to the bailee
2. The document is impounded by the court. 1. Stipulated time
2. In the absence of agreement, within a reasonable time.

Creditor’s Remedies
Where the goods at the time of sale are in the possession of a 3rd person
- He is entitled to such aid from courts of appropriate jurisdiction by
injunction and otherwise in attaching such document or in satisfying the - The seller has not fulfilled his obligation to deliver to the buyer unless
claim by means thereof is allowed at law or in equity in regard to and until such 3rd person acknowledges to the buyer that the holds the
property which cannot readily be attached or levied upon by ordinary goods on the buyer’s behalf.
legal process.
When must demand or tender of delivery be made?
Injunction
- At a REASONABLE HOUR.
- A court order commanding or preventing an action.
Note; What is a reasonable hour is a question of fact.
Attachment
Question of Fact
- The seizing of a person’s property to secure a judgment or to be sold in
- An issue that has not been determined and authoritatively
satisfaction of a judgment.
answered by the law.
NOTE: A stipulation designating the place and manner of delivery
Quantity of goods delivered is LESS
controlling on the contracting parties. The thing sold can only understood as
delivered to the buyer when it is placed in the buyer’s control and 1. Buyer may reject the goods
possession at the agreed place of delivery. 2. Buyer may accept;
a. If the acceptance is with knowledge that the seller is not
Place of Delivery
going to perform the contract, the buyer shall pay at contract
1. The place of delivery agreed upon rate.
2. If NO agreement, determined by usage of trade b. If the buyer has used or disposed of the goods delivered
3. If NO agreement and usage of trade, the seller’s place of business if before he knows that the seller is not going to perform his
he has one, and if not his residence. obligation, the buyer shall not be liable for more than the
Fair Value to him of the goods so received.

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Fair Value - A written instrument that is signed by the maker or drawer,

includes an unconditional promise or order to pay a specified
- An estimate of a good, service or asset’s potential price, based
sum of money , is payable on demand or at a definite time, and is
on a rational and unbiased assessment of the amount at which it
payable to order or bearer.
could currently be bought and sold between willing parties.
Dishonor
Quantity of Goods delivered is MORE
- To refuse to accept or pay ( a negotiable instrument) when
1. Buyer may accept the goods included in the contract and reject the
presented.
rest
2. Buyer may accept the whole of the goods and pay for them at the
contract rate
3. If indivisible, the buyer may reject the whole of the goods.
Insolvency
Mixed with Goods of Different Description
- The condition of being unable to pay debts as they fall due or in
1. Buyer may accept the goods which are in accordance with the
the usual course of business.
contract and reject the rest;
- The inability to pay debts as they mature.
2. If indivisible, the buyer may reject the whole of the goods.
Agent
RULE: Delivery to the carrier is delivery to the buyer, if the seller is
required to send the goods to the buyer. - Someone who is authorized to act for or in place of another
- A representative
Unpaid Seller
Bill of Lading
1. When the whole of the prices has not been paid or tendered
2. When a bill of exchange or other negotiable instrument has been - A document acknowledging the receipt of goods by a carrier or
received as conditional payment, and the condition on which it was by the shipper’s agent and the contract for the transportation of
received has been broken by reason of the dishonor of the those goods
instrument the insolvency of the buyer or otherwise. - A document that indicates the receipt of goods for shipment and
that is issued by a person engaged in the business of transporting
Bill of Exchange
or forwarding goods.
- An unconditional written order by one person to another, signed
Indorsed
by the maker, requiring the person addressed to pay to a third
party a specified sum on demand or at a fixed or ascertainable - To sign a negotiable instrument, either to accept responsibility
future time. for paying an obligation memorialized by the instrument or to
make the instrument payable to someone other than the payee
Negotiable Instrument
Consignor

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- The person named in a bill as the person from whom goods have
been received for shipment.
Lien
- A legal right or interest that a creditor has in another’s property
lasting usually until a debt or duty that it secures is satisfied.
1. When he delivers the goods to a carrier or other bailee for the
purpose of transmission to the buyer without reserving the
ownership in the goods or the right to the possession thereof;
2. When the buyer or his agent lawfully obtains possession of the
goods
3. By waiver thereof.

Remedies of an unpaid seller When right of stoppage in transit available?

1. Possessory Lien 1. The unpaid seller has parted with the possession of the goods
2. Right of stopping the goods in transit 2. The buyer of goods is or becomes insolvent.
3. Right of resale
Insolvent
4. Right to Rescind
- Having liabilities that exceed the value assets.
Goods are considered “in transit”
Possessory Lien
- From the time when they are delivered to a carrier by land ,water
- A lien allowing the creditor to keep possession of the
or air or other bailee for the purpose of transmission to the buyer,
encumbered property until the debt is satisfied.
until the buyer, or his agent in that behalf, takes delivery of them
When unpaid seller has possessory lien? from such carrier or other bailee
- If the goods are rejected by the buyer, and the carrier or other
1. Goods have been sold without any stipulation as to credit bailee continues in possession of them, even if the seller has
2. Goods have been sold on credit, but the term of credit has expired refused to receive them back.
3. The buyer becomes insolvent
When goods are no longer “in transit”?
1. If the buyer, or his agent obtains delivery of the goods before their
GR: The unpaid seller may exercise his right of lien on the remainder that arrival at the appointed destination
has not been delivered. 2. If, after the arrival of the goods at the appointd destination, the
EXC: When part delivery has been made under such circumstances as to carrier or other bailee acknowledges to the buyer or his agent that he
show an intent to waive the lien or right of retention holds the goods on his behalf and continues in possession of the as
baileefor the buyer or his agent, and it is immaterial that further
destination for the goods may have been indicated by the buyer
When unpaid seller loses his lien 3. If the carrier or other bailee wrongfully refuses to deliver the goods
to the buyer or his agent in that behalf.

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How the right of stoppage in transitu be exercised? The seller shall not thereafter be liable to the buyer upon the contract
of sale, but may recover from the buyer damages for any loss occassioned
1. Obtaining actual possession of the goods
by the breach of contract.
2. Giving notice of his claim to the carrier or other bailee
GR: The unpaid seller’s right of lien or stoppage in transitu is not affected
To whom notice is given?
by any sale, or other disposition of the goods which the buyer may have
1. The person in actual possession of the goods made.
2. His principal
EXC: The seller has assented or given his consent thereto.
- Someone who authorizes another to act on his or her behalf as an
agent.
Unit Price Contract
- The purchase price is determined by way of reference to a stated
rate per unit area.
Right of Resale
Lump Sum Contract
- An unpaid seller having a right of lien or having stopped the
goods in transitu may resell the goods in the following cases: - A full purchase price for an immovable the area of which may be
- 1. Goods are perishable nature declared based on an estimate or where both the area and
- 2. The seller expressly reserves the right of resale in case the boundaries are stated.
buyer should make default
Judicial Sale
- 3. The buyer has been in default in the payment of the price for
an unreasonable time. - A sale conducted under the authority of a judgement or court
- ( applies if yung title is nasa buyer na) order.
More or Less
Right to Rescind - Covers only a reasonable excess or deficiency.
- An unpaid seller having the right of lien or having stopped the Prescriptive Period
goods in transitu, may rescind the transfer of title and resume the
ownership in the goods: - The action for rescission arising from Articles 1539 and 1542
1. The seller expressly reserved the right to do so shall prescribe in 6 MONTHS counted from the day of delivery
2. The buyer has been in default in the paymet of the price for Requisites of DOUBLE SALE
an unreasonable time
1. Two or more valid contract of sale
Effect of exercise of the right to rescind 2. Two or more buyers wo are at odds over the rightful ownership of
the object must represent conflicting interests

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3. They must pertain exactly to the same object should have put him upon such inquiry and investigation as
4. They must be bought from the same seller. might be necessary to acquaint him with the defects in the title of
his vendor.
Principle of Double sale NOT APPLICABLE
- Gain greater significance in case of double sale of immovable
1. Some or all of the elements as mentioned above are not present property.
2. The two different contracts of sale are made by two different - GOOD FAITH
persons, one of them not being the owner of the property sold.
Purchase in Good Faith
3. Where one of the contract of sale is a forgery
4. Where one of the contract of sale is simulated and the other is - One who buys property of another without notice that some
genuine other person has a right to, or interest in, such property and pays
5. Where one of the contract of sale is subject to a suspensive condition a full and fair price for the same at the time of such purchase, or
which was not complied with and the other is an absolute sale. before he has notice of the claim or interest of some other person
in the property.
Condition imposed on PERFECTION OF CONTRACT
- Prevents the juridical relation from coming into existence.
RULES OF PREFERENCE IN CASE OF DOUBLE SALE
Condition imposed on PERFORMANCE OF OBLIGATION
1. Movable Property
- First possessor in good faith - Gives the option to the party either to refuse or proceed with the
2. Immovable Property contract of sale and waive the condition.
a. First registrant in good faith
Express Warranty
b. First possessor in good faith
c. Person with the oldest title in good faith - Any affirmation of fact or any promise by the seller relating to
the thing if the natural tendency of such affirmation or promise
EXC:
is to induce the buyer to purchase the same, and if the buyer
1. When the 2nd buyer, in good faith, registers the sale ahead of the first purchases the thing relying thereon.
buyer - Created by the overt words or actions of the seller.
2. Should there be no inscription by either of the two buyers, when the
Implied Warranty
second buyer, in good faith, acquires possession of the property
ahead of the first buyer. - An obligation imposed by the law when there has been no
representation or promise; especially, a warranty arising by
Primus Tempore, Potior Jure (First in Time, Stronger in Right)
operation of law because of the circumstances of a sale, rather
- The registrant must have no knowledge of the defect or lack of than by the seller’s express promise.
title of his vendor or must not have been aware of facts which
Eviction

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- The act or process of legally dispossessing a person of land or -The waiver is made by the vendee w/o the knowledge of the risk
rental property. of eviction.
- The vendor shall only pay the value which the thing sold had at
In order that a vendor’s liability for eviction may be enforced, the following
the time of eviction.
requisites must concur:
- GOOD FAITH
a. There must be a final judgement 2. Waiver Intencionada
b. The purchaser has been deprived of the whole or part of the - The waiver is made by the vendee with the knowledge of the risk
thing sold of eviction and assumed its consequences.
c. Said deprivation was by virtue of a right prior to the sale - The vendor shall not be liable.
made by the vendor
Presumption is waiver consciente.
d. The vendor has been summoned and made co-defendant in
the suit for eviction at the instance of the vendee. RESCISSION IS NOT A REMEDY IN CASE OF TOTAL EVICTION.
+ The vendee need not appeal from the decision in order that the vendor In TOTAL eviction, the vendee cannot return the object of the contract of
may become liable for eviction. sale.

Prescription Remedy in case of Partial Eviction

- The effect of the lapse of time in creating and destroying rights. 1. Rescission
2. Enforcement of vendor’s liability for eviction.
+ IF the property is sold for non-payment of taxes due and not made known
to the vendee before the sale, the vendor is liable for eviction. Note: In case of partial eviction, the vendee can still return a portion of the
remaining object of sale; thus rescission is allowed.
Judgment Debt
Final Judgment
- A debt that is evidenced by a legal judgment or brought about by
a successful lawsuit against the debtor. - A court’s last action that settles the rights of the parties and
disposes of all issues in controversy, except for the award of
Stipulation waiving obligations to answer for eviction
costs (and sometimes, attorney’s fees) and enforcement of the
- The buyer can waive the obligation of the vendor to answer for judgment.
eviction.
+The vendor shall not be obliged to make good the proper warranty, unless
- However, the said stipulation is void if the vendor acted in BAD
he is summoned in the suit for eviction at the instance of the vendee.
FAITH.
Servitude
Kinds of Waiver
1. Waiver Consciente

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- An encumbrance imposed upon an immovable for the benefit of 3. The defect renders the thing unfit for the use for which it is intended
another immovable belonging to a different owner 4. It must be instituted within the prescriptive period.
Warranty against non-apparent burden or servitude Unfit for the use intended
Requisites: - The use must have been stated in the contract itself, or can be
inferred from the nature of the object or from the trade or
1. The immovable sold should be encumbered with any non-apparent
occupation of the buyer.
burden or servitude, not mentioned in the agreement
2. The nature of the non-apparent burden or servitude is presumed that Vendor is NOT LIABLE
the vendee would not have acquired it had he been aware thereof.
1. Patent defects/ those which may be visible
Remedy where the immovable sold is encumbered with non-apparent 2. Not visible if the vendee is an expert who, by reason of his trade or
burden profession, should have known them.
1. Rescission Warranty of Fitness/ Implied Warranty of fitness for a particular
2. Indemnity purpose
- A warranty- imposed by law if the seller has reason to know of
the buyer’s special purpose for the item- that the item is suitable
for those purpose.
Prescriptive Period
Warranty of Merchantability or Implied Warranty of Merchantability
Within 1 year, to be computed from the execution of the deed, the vendee
- A merchant seller’s warranty- implied by law- that the thing sold
may bring the action for rescission or sue for damages.
is fit for its ordinary purpose.
- The seller warrants that the goods are reasonably fit for the
general purpose for which they are sold.
Hidden Defect - Goods were bought by description.
- One which is unknown or could not have been known to the GR: There is no warranty as to its fitness for any particular purpose.
vendee.
- Pertains only to those that make the object of the sale unfit for EXC: Stipulation to the contrary.
the use for which it was intended at the time of the sale.
Requisites:
GR: The vendor is responsible to the vendee for any hidden defects, even
1. The defect must be HIDDEN though he was not aware thereof.
2. The defect must exist at the time of the perfection of the contract of
EXC: If the contrary has been stipulated and the vendor was not aware of
sale
the hidden defects.

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NOTE: If the vendee is aware of the defect in the thing he buys or the lack Animals sold at fairs or at a public auctions or of live stock sold as
of title in the vendor, he is deemed to have willfully and voluntarily condemned
assumed the risk attendant of the sale.
- There is no warranty against hidden defects.
Remedies in Case of Hidden Defects
VOID sale of animals
1. Accion Redhibitoria or Withdrawal or Rescission plus damages.
1. The sale of animals suffering from contagious disease
2. Accion Quanti Minores or Proportionate reduction in the price plus
2. Sale of unfit animals.
damages.
Redhibitory Defect
Effect of Loss of the thing in consequence of hidden defect
- If the hidden defect of animals, even in case a professional
Vendor is Aware of Hidden Vendor is not aware of the
inspection has been made, should be of such a nature that expert
Defects hidden defects
He shall bear the loss He shall return the price knowledge is not sufficient to discover it.
He shall return the price He shall return the interest + The redhibitory action, based on the faults or defects of animals, must be
He shall refund the expenses He shall reimburse the expenses of brought within 40 days from the date of their delivery to the vendee.
the contract.
He shall pay damages

Effective if the defective thing was lost through a fortutious event or

Animal dies within 3 days after its purchase
through buyer’s fault
- The vendor shall be liable if the disease which caused the death
- The buyer may demand of the vendor the price which he paid,
existed at the time of the contract and not at the time of delivery.
less the value which the thing had when it was lost.
+ Actions arising from the provisions of the preceding ten articles shall be
barred after 6 MONTHS, from the delivery of the thing sold.
GR: The redhibitory defet of one shall only give rise to its redhibition, and Effect of Rescission of sale of animal with redhibitory defect
not that of the others.
1. The animal shall be returned in the condition in which it was sold
EXC: The vendee would not have purchased the sound animal or animals and delivered.
w/o the defective one. This is presumed when a team, yoke pair or set is 2. The vendee is answerable for any injury due to his negligence.
bought, even if a separate price has been fixed for each one of the animals
Remedies in case of Hidden Defects
composing the same.
1. Accion Redhibitoria
NOTE: The presumption is a disputable presumption.
2. Accion Quanti Minoris

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