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Articles 1564 and 1565 of the Civil Code of the Philippines outline the vendor's liability for eviction and the remedies available to the buyer. Article 1564 mandates that the seller is responsible for ensuring the buyer's legal possession of the sold item, with the possibility of modifying this obligation, while Article 1565 specifies the compensation the seller must provide to the buyer in case of eviction due to a superior right. These articles protect buyers from losing ownership and ensure they are compensated for losses incurred due to eviction.
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0% found this document useful (0 votes)
4 views

rfbt 3

Articles 1564 and 1565 of the Civil Code of the Philippines outline the vendor's liability for eviction and the remedies available to the buyer. Article 1564 mandates that the seller is responsible for ensuring the buyer's legal possession of the sold item, with the possibility of modifying this obligation, while Article 1565 specifies the compensation the seller must provide to the buyer in case of eviction due to a superior right. These articles protect buyers from losing ownership and ensure they are compensated for losses incurred due to eviction.
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Full Discussion on Articles 1564 to 1565 of the Civil Code of the

Philippines

These articles fall under Title VI – Sales, Chapter 4 – Obligations of the Vendor, specifically
addressing the warranty against eviction in a contract of sale.

Article 1564 – Vendor's Liability for Eviction


"The vendor shall answer for the eviction, even though nothing has been said in the
contract on the subject.

The contracting parties, however, may increase, diminish, or suppress this legal obligation
of the vendor.

Any stipulation exempting the vendor from the obligation to answer for eviction shall be
void, if he acted in bad faith."

Explanation:

This article establishes the seller’s obligation to guarantee the buyer’s peaceful and legal
possession of the thing sold. If the buyer is later deprived of the property due to a superior right
of a third party, the seller is liable for eviction.

Key Points:

1. Obligation Exists Even if Not Stated in the Contract


o The seller automatically warrants against eviction, even if the
contract is silent on the matter.

2. Parties Can Modify or Remove This Obligation


o The buyer and seller may agree to:
 Increase liability (e.g., higher indemnity if eviction
occurs).
 Reduce liability (e.g., limiting damages recoverable by
the buyer).
 Suppress liability (e.g., an express waiver by the buyer).

3. Exception – Waiver is Void if Seller Acted in Bad Faith


o If the seller knew about the defect in ownership but still sold
the property, any agreement removing the warranty is invalid.
o The seller remains fully liable in such cases.
Example:

 Case 1 (Ordinary Eviction): A sells a piece of land to B. Later, C


proves in court that the land legally belongs to him, and B is evicted. A
must compensate B for the loss.
 Case 2 (Contractual Modification): A and B agree in writing that A
will not be liable for eviction. If B is later evicted, A has no obligation
unless he acted in bad faith (e.g., knowingly selling a property owned
by someone else).

Article 1565 – Remedies of the Buyer in Case of Eviction


"Should the vendee be deprived of the whole or a part of the thing purchased, by virtue of
a final judgment, based on a right prior to the sale or an act imputable to the vendor, the
vendor shall be bound to indemnify the vendee for the following:

(1) The value of the thing at the time of eviction, be it greater or lesser than the price of the
sale;
(2) The income or fruits, if he has been ordered to deliver them to the party who won the
suit against him;
(3) The costs of the suit which caused the eviction, and, in a proper case, those of the suit
brought against the vendor for the warranty;
(4) The expenses of the contract, if the vendee has paid them;
(5) The damages and interests, and ornamental expenses, if the sale was made in bad
faith."

Explanation:

This article details the buyer’s rights and seller’s liability in case of eviction due to a court
decision based on a superior right that existed before the sale.

Conditions for the Seller’s Liability:

1. Final Judgment – There must be a court ruling confirming eviction


based on a superior right.
2. Right Prior to Sale – The claim must be based on a right that
existed before the buyer acquired the property.
3. Eviction Not Due to Buyer’s Fault – The eviction must result from
an issue traceable to the seller, not the buyer (e.g., the buyer lost
the case due to his own negligence).
What the Seller Must Pay the Buyer (Indemnification):

1. Value of the Property at the Time of Eviction


o If the property's value increased since the sale, the seller must
pay its higher value.
o If the value decreased, the seller still pays its current lower
value.

2. Fruits or Income Earned


o If the buyer was ordered to return the property along with
income or fruits (e.g., rental income), the seller must
reimburse this amount.

3. Litigation Costs
o If the buyer had to go to court to defend his right and lost, the
seller must pay for:
 The costs of the case where eviction was decided.
 The costs of any legal action against the seller.

4. Expenses of the Sale Contract


o If the buyer incurred expenses to execute the sale (e.g.,
notarization, registration fees), the seller must reimburse these.

5. Damages, Interest, and Ornamental Expenses (If Sale Was in Bad Faith)
o If the seller knew the defect in ownership but sold the property
anyway, the buyer can claim:
 Damages for losses suffered.
 Interest on amounts paid.
 Ornamental expenses (e.g., improvements made to the
property).

Example:

 Scenario: A sells a car to B for ₱1,000,000. Later, C proves in court


that he legally owns the car, and B is forced to return it.
o The car’s value at eviction is now ₱1,200,000 → A must pay
₱1,200,000.
o If B had rented out the car for ₱50,000 per month and must
return the income to C → A must reimburse this amount.
o If B spent ₱20,000 on registration fees and ₱100,000 on
accessories, and A acted in bad faith → A must reimburse these
costs.
Conclusion
Articles 1564 and 1565 protect buyers from losing ownership of a purchased item due to the
superior rights of third parties. They ensure that the seller is accountable unless the buyer
agreed otherwise in good faith.

 Article 1564 establishes that a seller is generally liable for eviction,


but this can be modified by agreement (except in bad faith).
 Article 1565 details the buyer’s rights and compensation if
eviction occurs, ensuring that they recover not just the property’s
value but also fruits, expenses, and damages.

Would you like further case examples or real-world applications of these articles?

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