Warranty transfer ownership to the buyer who shall not

be disturbed in his legal and peaceful

- a statement or representation made by the possession thereof.
seller of goods, contemporaneously and as a
part of the contract of sale, having reference to
the character, quality, or title of the goods, and
by which he promises or undertakes to insure
that certain facts are or shall be as he then Elements:
represents.
1. vendee is deprived, in whole or in part,
Kinds of the thing purchased;
1. EXPRESS – any affirmation of fact or any 2. the deprivation is by virtue of a final
judgment;
promise by the seller relating to the thing if the
3. the judgment is based on a prior right to
natural tendency of such affirmation or promise
the sale or an act imputable to the
is to induce the buyer to purchase the same and
vendor;
if the buyer purchases the thing relying thereon
4. the vendor was summoned in the suit for
*a mere expression of opinion, no matter how eviction at the instance of the vendee;
positively asserted, does not import a warranty AND
unless the seller is an expert and his opinion 5. no waiver of warranty by the vendee.
was relied upon by the buyer.
Vendor's liability shall consist of:
2. IMPLIED - that which the law derives by
1. Total eviction: (VICED)
implication or inference from the nature of the
a. Value of the thing at the time of
transaction or the relative situation or
eviction;
circumstances of the parties, irrespective of any
b. Income or fruits if he has been
intention of the seller to create it.
ordered to deliver them to the
a. Warranty against eviction party who won the suit;
b. Warranty against hidden defects c. Costs of the suit;
c. Warranty as to Fitness and d. Expenses of the contract; AND
Merchantability e. Damages and interests if the
sale was in bad faith.
*an implied warranty is a natural, not an 2. Partial eviction:
essential element of a contract, and is deemed a. to enforce vendor’s liability for
incorporated in the contract of sale. It may eviction (VICED); OR
however, be waived or modified by express b. to demand rescission of
stipulation. contract.
*there is no implied warranty as to the
condition, adaptation, fitness or suitability or
the quality of an article sold as a second-hand Why is rescission not a remedy in case of total
article. But such articles might be sold under eviction?
such circumstances as to raise an implied
- rescission contemplates that the one
warranty.
demanding it is able to return whatever he has
*a certification issued by a vendor that a received under the contract. Since the vendee
second-hand machine was in A-1 condition is can no longer restore the subject-matter of the
an express warranty binding on the vendor. sale to the vendor, rescission cannot be carried
out.

* the suit for the breach can be directed only

Warranty against eviction against the immediate seller, not sellers of the
- warranty in which the seller guarantees that seller unless such sellers had promised to
he has the right to sell the thing sold and to warrant in favor of later buyers or unless the
immediate seller has expressly assigned to the - within ONE YEAR from the
buyer his own right to sue his own seller. execution of the deed of sale

* the disturbance referred to in the case of

eviction is a disturbance in law which requires
that a person go to the courts of justice Warranty against hidden defects
claiming the thing sold, or part thereof and - warranty in which the seller guarantees that
invoking reasons. Mere trespass in fact does the thing sold is free from any hidden faults or
not give rise to the application of the doctrine defects or any charge or encumbrance not
of eviction. declared or known to the buyer.

Elements
Vendor’s liability is waivable but any 1. defect must be Serious or important;
stipulation exempting the vendor from the 2. it must be Hidden;
obligation to answer for eviction shall be void 3. it must Exist at the time of the sale;
if he acted in bad faith. 4. vendee must give Notice of the defect
Kinds of Waiver to the vendor within a reasonable time;
5. action for rescission or reduction of
a. Consciente – voluntarily made by the price must be brought within the proper
vendee without the knowledge and Period (within 6 mos. from delivery of
assumption of the risks of eviction the thing or 40 days from date of
delivery in case of animals); and
*vendor shall pay only the value which the 6. no Waiver of the warranty.
thing sold had at the time of eviction
Remedies of the Vendee:
b. Intencionada – made by the vendee with
knowledge of the risks of eviction and a. Accion redhibitoria (rescission)
assumption of its consequences
b. Accion quanti minoris (reduction of the
EFFECT: vendor not liable price)

*: every waiver is presumed to be consciente. *hidden faults or defects pertain only to those
To consider it intencionada, it must be that make the object unfit for the use for which
accompanied by some circumstance which it was intended at the time of the sale.
reveals the vendor’s knowledge of the risks of
* this warranty in Sales is applicable in Lease
eviction and his intention to submit to such
consequences.

Effect of loss of thing on account of hidden

defects:
Where Immovable Sold Encumbered with Non-
Apparent Burden 1. If vendor was aware of hidden defects, he
shall bear the loss and vendee shall have
1. Right of vendee
the right to recover: (PED)
a) recission, or
a. the price paid
b) indemnity
b. expenses of the contract
2. When right cannot be exercised:
c. damages
a) if the burden or servitude is
2. If vendor was not aware, he shall be
apparent
obliged to return: (PIE)
b) if the non-apparent burden or
a. price paid
servitude is registered
b. interest thereon
c) if vendee had knowledge of the
c. expenses of the contract if paid by
encumbrance, whether it is
the vendee
registered or not
3. When action must be brought
Effect if the cause of loss was not the hidden - It requires identity between what is described
defect in the contract AND what is tendered, in the
sense that the latter is of such quality to have
If the thing sold had any hidden fault at the some value
time of the sale, and should thereafter be lost
by a (1) fortuitous event OR (2) through the
fault of the vendee: Instances where implied warranties are
inapplicable:
- the vendee may demand of the vendor the
price which he paid less the value of the thing 1. As is and where is sale – vendor makes no
at the time of its loss. warranty as to the quality or workable
condition of the goods, and that the vendee
* the difference between the price paid and the
takes them in the condition in which they are
value of the thing at the time of its loss
found and from the place where they are
represents the damage suffered by the vendee
located.
and the amount which the vendor enriched
himself at the expense of the vendee 2. Sale of second-hand articles
If the vendor acted in bad faith: 3. Sale by virtue of authority in fact or law
- vendor shall pay damages to the vendee

Caveat Venditor (“Let the seller beware”):

- the vendor is liable to the vendee for any
hidden faults or defects in the thing sold,
Implied Warranties of Quality Warranty of
even though he was not aware thereof.
Fitness
- warranty in which the seller guarantees
that the thing sold is reasonably fit for the
known particular purpose for which it was
acquired by the buyer Caveat Emptor (“Let the buyer beware”):

General Rule: there is no implied warranty - requires the purchaser to be aware of the
as to the quality or fitness for any supposed title of the vendor and one who
particular purpose of goods under a buys without checking the vendor’s title
contract of sale takes all the risks and losses consequent to
such failure.
EXCEPTIONS:

1. Where the buyer, expressly or by

implication manifests to the seller the RULES IN CASE OF SALE OF
particular purpose for which the goods ANIMALS
are required
2. Where the buyer relies upon the 1. When two or more animals have been
seller’s skill or judgment sold at the same time and the redhibitory
defect is in one, or some of them but not in
all, the general rule is that the redhibition
Warranty of Merchantability will not affect the others without it. It is
immaterial whether the price has been
- Warranty in which the seller guarantees, fixed for a lump sum for all the animals or
where the goods were bought by description,
for a separate price for each.
that they are reasonably fit for the general
purpose for which they are sold 2. No warranty against hidden defects of
animals sold at fairs or at public auctions,
or of livestock sold as condemned. This is
based on the assumption that the defects
must have been clearly known to the buyer.
3. Sale of animals shall be void when: a)
animals sold are suffering from contagious
disease b) if the use or service for which
they are acquired has been stated in the
contract, and they are found to be unfit
therefor
4. Limitation of the action: 40 days from
the date of their delivery to the vendee
5. Vendor shall be liable if the animal
should die within 3 days after its purchase
if the disease which caused the death
existed at the time of the contract