Law on Sales

Venditio / Vente / Venta

Roman French Spanish

(1458-1637)
Atty. Amado R. Villegas, Jr.
RFBT Reviewer / Professor I – FEU Manila
Law on Sales
(1545 - 1581)

Atty. Amado R. Villegas, Jr.

RFBT Reviewer / Professor I – FEU Manila
 Conditions and Warranties
Condition v. Warranty
Effect of non-fulfillment of condition
Remedies
1. Refuse to proceed with the contract
2. Waive the condition

Can the non-fulfillment of the condition be treated

as a breach of warranty?
 Conditions and Warranties
Express Warranty Implied Warranty
(1546) (1547)

Caveat Emptor 1. Implied warranty

GR – Mere expression of an against eviction (1548)
opinion by an ordinary 2. Implied warranty
person does not import a
warranty unless the seller is
against hidden defect
an expert and the opinion (1561)
was relied upon by the 3. Implied warranty of
buyer. (Sales’ Talk / Dealer’s fitness or merchantability
Talk) (1562)
 Conditions and Warranties
When implied warranty NOT applicable
(1) “As is and where is” sale
(2) Sale of second hand article
(3) Sale by virtue of authority in fact or law
(sheriff, auctioneer, mortgagee, pledgee, or other
person professing to sell by authority in fact or law)
 Conditions and Warranties
Essential elements of the implied warranty
AGAINST EVICTION (1548)
(1) The vendee is deprived in whole or in part of the thing
purchased;
(2) He is so deprived by virtue of a final judgment (1552);
(3) The judgment is based on a right prior to the sale or an
act imputable to the vendor;
(4) The vendor was summoned in the suit for eviction at the
instance of the vendee; and
(5) There is no waiver on the part of the vendee
 Conditions and Warranties
1549 – Vendee has no duty to appeal from
judgment
1551 – Deprivation for non-payment of taxes
1552 – Liability of judgment debtor (v. 1570 –
judgment debtor not liable for hidden defect)
1555 – Vendee can demand VICED
1556- Partial eviction (Rescind or enforce warranty)
1558 – Formal summons to vendor essential
1559 – Vendor to be made a co-defendant
 Conditions and Warranties
1550 – Effect of prescription (10 yrs GF / 30 yrs BF)
a. if completed before the sale
b. if completed after sale (seller not liable)
1553 – Stipulation waiving warranty (Seller)
* if seller acted in BF – liable
1554 – Kinds of waiver of eviction (buyer)
a. waiver consciente (pay the value at the time of eviction)
b. waiver intencionada (seller is not liable)
 Conditions and Warranties
1560 – Right of vendee where immovable sold
encumbered with non-apparent burden
a. Within one year to be computed from the execution
of the deed, rescission or sue for damages
b. One year having elapsed, action for damages counted
from discovery of the burden
When remedies NOT available
(1) If burden is apparent
(2) If non-apparent burden or servitude is registered
(3) If the vendee had knowledge of the encumbrance
 Conditions and Warranties
Implied Warranty
(a) Merchantability – Goods are reasonably fit
for the general purpose for which they were
sold
(b) Fitness - goods are suitable for the special
purpose of the buyer
 Conditions and Warranties
Implied Warranty Against Hidden Defect (Redhibitory)
When is defect important?
(1) it renders the thing sold unfit for the use for
which it is intended
(2) if it diminishes its fitness for such use to such
extent that the vendee would not have acquired it had
he been aware thereof
When is defect hidden?
(1) if it was not known / not visible
(2) If the vendee is an expert
 Conditions and Warranties
Caveat Emptor Caveat Venditor
(1546) (1566)
Express Warranty Hidden Defect
Seller is not liable Seller is liable whether
he knows it or not
E – contrary stipulation and
seller was not aware
 Conditions and Warranties
Alternative Remedies of the buyer in case of
hidden defect –
(1) Accion Redhibitoria / Withdrawing from the
contract
(2) Accion Quanti Minoris / Proportionate
reduction of the price

Period to file – 6 months from the delivery of

the thing sold (1571)
 Conditions and Warranties
Effect of loss of thing sold on account of hidden
defects (1568)
a. Vendor was aware –
b. Vendor was not aware -
Effect of loss of defective thing sold (1569)
- price which he paid, less the value which the
thing had when it was lost (If seller in BF – damages)
 Sale of Animals
1572 – Sale of two or more animals together
1574 – sale of animals at fairs or at public auctions or as
condemned
1575 – Sale of animals suffering from contagious diseases
and unfit animals
1576 – Redhibitory defect of animals (if expert)
1577 – Period to file – 40 days
1578 – If animal dies within 3 days, LIABLE
1579 – Liability of buyer in case sale of animal rescinded
1580 – Alternative remedies (Withdrawal or Reduction)
 THANK
Atty. Amado R. Villegas, Jr.
Professor 1, Far Eastern University
PRTC Reviewer
YOU
Bats CPAR Reviewer
CTDI Reviewer
PRIA Reviewer