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Conditions and Warranties Sec. 3
Conditions and Warranties Sec. 3
And, under (a) above, he may also treat the non-performance of the condition as a breach of
warranty.
Art. 1545
Example: B bought a laptop computer from S for P50,000.00 which B agreed to pay in
cash provided that S had already installed an internet connection on the computer upon
its delivery to him. S delivered the computer to B’s place with the internet connection not
yet installed. What remedies are available to B?
Answer: (a) B may refuse to proceed with the contract, by not paying the purchase price.
In case S HAD MADE A PROMISE THAT the internet connection would have already
been installed at the time of delivery, B may also treat S’s non-performance of the
condition as a breach of warranty, OR
Art. 1545
Answer: (a) B may refuse to proceed with the contract, by not paying the purchase price.
In case S HAD MADE A PROMISE THAT the internet connection would have already
been installed at the time of delivery, B may also treat S’s non-performance of the
condition as a breach of warranty, OR
(b) B may just accept the computer and pay the price without demanding the installation
of the internet connection.
Art. 1546
1. Kinds of warranties
a. Express warranty – it is an affirmation of fact or any promise relating to the thing// the
natural tendency of which is to induce the buyer to purchase the same,// and the buyer
purchases the thing relying thereon.
Thus, a statement made by the seller as regards the QUALITY (“this cloth is 100%
wool”), CAPACITY (“this electric pump can fill a 1000 gallon water tank in 10
minutes”), or OTHER CHARACTERISTICS of his product, (“this frying pan is non-
stick) is an express warranty.
Art. 1546
1. Kinds of warranties
b. Implied warranty – this is a warranty that arises automatically by the mere fact that a
contract of sale has been entered into, UNLESS it is suppressed by the parties.
Art. 1546
Thus, statements pertaining to the value of the thing such as “This ring would fetch a price
of P50,000.00 in an auction” or “This antique jar is sold at P30,000.00 elsewhere,” DO
NOT CREATE AN EXPRESS WARRANTY.
Art. 1546
3. Expert opinion
If the affirmation of value or statement of opinion pertaining to the thing WAS MADE BY
AN EXPERT, the same SHALL BE CONSTRUED AS A WARRANTY, since the expert’s
opinion shall be considered AS A FACT.
Hence, there is a violation of the warranty if such affirmation or opinion TURNS OUT TO
BE FALSE.
Art. 1546
3. Expert opinion
Thus, a statement of an opinion by an ART DEALER that “this painting is an authentic
work of Juan Luna.” or by a JEWELER that “this diamond is flawless,” or “this bracelet
is worth P100,000.00” IS A WARRANTY since the said statements were made by an
expert.
Art. 1547
b.Auctioneer
c.Mortgagee
d.Pledgee
1. Eviction, concept
Eviction is the deprivation of the vendee of the whole or a part of the thing sold by virtue of
a FINAL JUDGMENT based on a right prior to the sale or an act imputable to the
vendor.
Art. 1548 in re to Arts. 1557, 1558 and 1559
1. Requisites in order that the seller’s warranty against eviction may be enforced
a. The purchaser has been deprived of the whole or part of the thing sold.
b. The deprivation is by final judgment.
The vendee need not appeal from the decision or judgment in order that the
vendor may become liable for eviction. (Art. 1549)
c. The deprivation is based on a right prior to the sale or an act imputable to the vendor.
d. The vendor must have been notified of the suit for eviction and made a co-defendant at
the instance of the vendee. (Art. 1558)
Art. 1548
2. Example
S sold his lot to B in a private instrument. B took immediate actual possession of the lot.
Two days later, S sold the same lot in a public instrument to X who recorded the sale with
the Register of Deeds. Neither one was aware of the sale made to the other. When X visited
the lot to take actual possession of it, he saw that B was occupying the same and learned
from B that S had sold the lot to B earlier. Accordingly, X filed a complaint for eviction
against B. Upon receipt of the summons and the complaint, B notified S of the suit
brought against him. After hearing, the court rendered judgment evicting B from the lot.
B CAN HOLD S LIABLE FOR BREACH OF WARRANTY AGAINST EVICTION
because all the elements for liability for breach of warranty against eviction are present.
Art. 1548
3. Other instances when seller is liable for breach of warranty against eviction
a.Sale of the property for non-payment of taxes
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. (Art. 1551)
b. Judicial sales
The judgment debtor is liable for eviction, unless otherwise decreed in the
judgment. (Art. 1552)
Art. 1549
2. Example
Since January 1, 1980, P, in the concept of an owner, had been in public, peaceful and
uninterrupted possession (OCENPO) of an untitled lot which he knew was inherited by S
from his parents. On October 1, 2008, S sold the lot to B. As of January 5, 2010, P was still
in possession of the lot. Now, under Art. 1137 of the New Civil Code, “Ownership and
other real rights over immovables also prescribe through uninterrupted adverse
possession thereof for thirty (30) years, without need of title or good faith.” Thus, P’s
adverse possession of the lot RIPENED TO OWNERSHIP due to prescription. As a result,
B could not get the lot. May B hold S liable for eviction?
Art. 1550
Answer: No, because when the adverse possession had been commenced before the sale but
the prescriptive period is completed after the transfer, the vendor shall not be liable for
eviction.
Art. 1550
2. Example
S sold his lot to B. Unknown to B, the real property taxes on the property had been
in arrears for the past 10 years. As a result, the lot was sold at public auction to
satisfy the taxes due, resulting in the eviction of B. Here, B can hold S liable for
eviction.
Art. 1552
2. Example
D borrowed P500,000.00 from C. D failed to pay the debt on due date, so C sued him
for collection. The court rendered judgment in favor of C and ordered the sale of a
certain farm lot which was registered in the name of D to satisfy the debt. The lot was
awarded to B at the execution sale. It appeared, however, that T had a claim on the
property, so T sued B for eviction, and obtained judgment against the latter.
Art. 1552
2. Example
D borrowed P500,000.00 from C. D failed to pay the debt on due date, so C sued him
for collection. The court rendered judgment in favor of C and ordered the sale of a
certain farm lot which was registered in the name of D to satisfy the debt. The lot was
awarded to B at the execution sale. It appeared, however, that T had a claim on the
property, so T sued B for eviction, and obtained judgment against the latter.
Here, D, the judgment debtor in the suit that C filed against him, will be liable to B
for eviction, although the latter acquired the lot in a judicial sale.
Arts. 1553; 1554 and 1555
2. Example
S sold two lots (Lot 1 and Lot 2) for a lump sum of P1,000,000.00. (a) if B is deprived
of Lot 1 because of eviction, what remedies are available to him? (b) Will your answer be
the same if B paid P450,000.00 for Lot 1 and P550,000.00 for Lot 2 and it appears that he
would not have purchased one lot without the other?
Answers: (a) B may rescind the whole contract (the sale of both lots), or he may retain Lot
2 and enforce S’s liability for breach of warrant against eviction for Lot 1. (b) Yes, the
same alternative remedies are available to B, although he paid a separate price for both
lots, because he would not have bought one of the lots without the other.
Art. 1557
3. Requisites for vendor’s liability should the immovable sold be encumbered with
easement or servitude
a. The easement must be non-apparent.
b. It must not have been mentioned in the agreement.
c. It must be of such nature that it must be presumed that the vendee would not have
acquired the immovable had he been aware thereof.
Art. 1560
4. Vendee’s remedies should the immovable sold be encumbered with any NON-
APPARENT easement or servitude
a. Within one year from the execution of the deed of sale, the vendee may ask for:
1) Rescission, or
2) Damages.
b. After one year from the execution of the deed of sale, the vendee may ask for:
Damages, within a period of one year FROM THE DISCOVERY of the
easement or servitude.
Art. 1560
Example: B goes to a store selling beds. He informs the seller that he needs an inflatable
bed that can support the weight of his foreign visitor who is 300 pounds. The seller thus
presents to him a particular type of inflatable rubber bed which B buys relying upon the
seller’s judgment.
If the bed later bursts upon use by B’s visitor, then the seller has violated his warranty
that the bed is fit for the particular purpose of his buyer.
Art. 1562
Example: B, a grains dealer, ordered a bundle of plastic bags consisting of 100 pieces from
S as described in a catalog sent by S to B. Each plastic bag was described in the catalog as
suitable for the repacking of goods with a weight of 5 kilograms. When B started
repacking rice in the plastic bags shortly after the delivery of the bundle to him, each of
the first 10 plastic bags burst and could not contain its contents.
Here, S has violated his warranty that the goods are of merchantable quality.
Art. 1563
Art. 1563
Example: Belinda went to a store and asked for “Plymouth’s Adhesive,” a glue which is
used ordinarily for paper. Belinda intended to use the glue for a Christmas tree she was
making with used plastic cups as material.
Here, the seller’s warranty is not for the particular purpose of Belinda since she bought
the glue UNDER ITS TRADE NAME. Thus, if the glue did not stick together the plastics
Belinda was using, the store will NOT be liable for breach of warranty of fitness for a
particular purpose.
Art. 1564
Art. 1565
1. Sale by sample
In sale by sample, the parties enter into the contract of sale solely with reference to
the sample. Here, the seller WHO IS A DEALER IN GOODS OF THAT KIND
warrants the following:
a. That the bulk of the goods delivered correspond with the sample
shown to the buyer.
b. That the goods shall be free from any defect rendering them
unmerchantable which would not be apparent on reasonable
examination of the same.
Art. 1565
1. Sale by sample
This warranty is not imposed if the defect CAN BE DISCOVERED UPON A
REASONABLE EXAMINATION OF THE SAMPLE, and the buyer was ACCORDED
THE OPPORTUNITY TO CONDUCT A REASONABLE EXAMINATION OF
THE SAMPLE.
Art. 1566
1. Vendee’s remedies
a. Rescission of the contract, with damages (accion redhibitoria)
b. Proportionate reduction of the price, with damages (accion quanti minoris)
2. Articles affected:
Art. 1561 (first article on warranty against hidden defects); Art. 1562 (quality or
fitness); Art. 1564 (usage of trade); Art. 1565 (sale by sample); and, Art. 1566 (vendor
responsible).
Arts. 1568 and 1569
1. Judicial sales
In judicial sales, the judgement debtor, not the officer who conducted the sale, is
actually the seller and the one liable for breach of warranty. Bad faith, however, cannot
be imputed to him because of the compulsory nature of the sale. Hence, he shall not be
liable for damages.
Art. 1571
Example: Brenda bought online 6 pieces of curtain with identical designs from Shopline
Stores Company. She intended to use the curtains for the size windows of her newly-
constructed bungalow. On inspecting the curtains upon their delivery to her, she
discovered that one curtain had thread runs on it. May Brenda rescind the sale to her of
all the 6 pieces of curtain?
Answer: Yes, because she bought the 6 pieces of curtain AS A SET, which means that she
would not have bought the 5 pieces which did not have any defect, without the defective
piece.
Art. 1574
1. Remedies of vendee
In sale of animals with redhibitory defects, the vendee may avail himself of:
a. Rescission of the contract, with damages (accion redhibitoria)
b. Proportionate reduction of the price, with damages (accion quanti minoris) (Arts.
1567, 1580)