DLA vs. NECO (Civil Case No.

2021-0-94)

Defense:

1. There is no express warranty on the fitness of the goods to the

particular use of DLA;

2. Implied warranty of fitness for particular purpose is not included by

warranty against hidden defects because the thing may not have any
hidden defect. As to 1 million buyers they will be fine, but as to 1
person, it may not be fit for his purpose. (Contra: Warranty of
Merchantability – warranty for the general purpose)

3. Check requirements for warranty against hidden defects. (NOTE:

seller is still responsible to the buyer for any hidden faults or defects
in the thing sold, even though he was not aware thereof – Art. 1566,
and there is contrary stipulation against said warranty)

Possible Complainant’s Contention:

1. In case of breach of implied warranty, the consumer may retain the

goods and recover damages, or reject the goods, cancel the sale and
recover from the seller so much of the purchase price as has been
paid, including damages [Art. 68(f)(2), R.A. 7394]
[CONTRA: R.A. 7394 does not apply because complainant is not a
“natural person” - n) "Consumer" means a natural person who is a purchaser, lessee,
recipient or prospective purchaser, lessor or recipient of consumer products, services or credit. ]

2. .

Questions:

1. Did NECO expressly assume warranty for hidden defects;

2. Back story on how DLA ended up ordering from NECO;

3. Could DLA be considered as expert in the trade, nature of DLA’s

business;

4. Was there an inspection conducted prior to delivery?

5. Is there any other written document other than the Invoice?

6. Transaction history of DLA and NECO.

7. Any document to prove that other glucose from the same batch No.
20200920/ 20201105 delivered to other clients were not rejected?

Witnesses:
DLA vs. NECO (Civil Case No. 2021-0-94)

1. Christoper Lim

2. Erlyn I. Gallego (Importation Coordinator of NECO) – gist of possible

testimony/documents to verify?

3. Ma. Solidad V. Layugan ( Warehouse Supervisor of NECO) – gist of

possible testimony/documents to verify?

4. Alyssa Jeanne C. Dueñas (Junior Sales Staff of NECO) – gist of

possible testimony/documents to verify?

5. Adriano H. San Pedro (Contractual Representative) – gist of

possible testimony/documents to verify?