Notes_Warranties.doc

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IX. CONDITIONS AND WARRANTIES

a. Condition – a future and an uncertain event which may or may nothappen, upon which depends the rising or extinction of an obligation.

Effect of non-fulfillment of condition (rt. !"#"$%

!$ &he other party may%a. 'efuse to proceed with the contract orb. )roceed with the contract, waiving the performance of the condition

*$ If the condition is in the nature of a promise that it should happen, thenon-performance of such condition may be treated by the other party asbreach of warranty.

Note: distinction must be made between a condition imposed on the

perfection of a contract and a condition imposed merely on the performanceo an obligation. &he failure to comply with the first condition prevents the +uridical relation itself from coming into existence. ailure to comply with thesecond merely gives the option either to refuse or proceed with the sale or towaive the condition.

b. ondition versus arranty

WARRANTY CONDITION!. /oes into the performance of suchobligation and in fact may constitute

an obligation itself

!. /oes into the root of the existenceof the obligation

*. 0ay form part of the obligation orcontract by provision of the lawwithout the parties having agreedthereto

*. 0ust be stipulated by the parties inorder to form part of an obligation

1. hether express or implied relatesto the sub+ect matter itself or to theobligations of the seller as to thesub+ect matter of the sale

1. 0ay attach itself either to theobligation of the seller to deliverpossession and transfer ownershipover the sub+ect matter of the sale

Warranty – statement or representation made by the seller

contemporaneously and as a part of the contract of sale, having reference tothe character, 2uality, or title to the goods, and by which he promises orunderta3es to insure that certain facts are or shall be as he then represents(rt. !"#4$

c. Express Warranty – any affirmation of fact or promise by the sellerrelating to the thing, inducing the buyer to purchase the same and if thebuyer purchases the thing relying thereon.

NOTE: mere expression of opinion, no matter how positively asserted,does not import a warranty 567E88 the seller is an expert and his opinion

was relied upon by the buyer.

d. Implied Warranty – that which the law derives from the nature of thetransaction or the relative situation or circumstances of the parties,irrespective of any intention of the seller to create it.



i. arranty against eviction – the seller guarantees that he has the right tosell the thing sold and to transfer ownership to the buyer, who shall not bedisturbed in his legal and peaceful possession thereof.

Elements%

!. 9endee is deprived, in whole or in part, of the thing purchased*. :eprivation is by virtue of a final +udgment1. ;udgment is based on a prior right to the sale or an act imputable tothe vendor#. 9endor was summoned in the suit for eviction at the instance of thevendee% (a$ to enable the seller to prove his claim (b$ to avoidmultiplicity of suits and (c$ to satisfy due process and". 6o waiver of warranty by the vendee.

9endor<s liability shall consist of%!. &otal eviction

a. 9alue of the thing at the time of evictionb. Income or fruits if he has been ordered to deliver them to theparty who won the suitc. osts of the suitd. Expenses of the contract ande. :amages and interests if the sale was in bad faith

*. )artial eviction%a. &o enforce vendor<s liability for eviction orb. &o demand rescission of the contract

6=&E% 'escission is not a remedy in case of eviction because rescissioncontemplates that the one demanding it is able to return whatever he hasreceived under the contract. 8ince the vendee can no longer restore thesub+ect-matter of the sale to the vendor, rescission cannot be carried out.

aiver of liability – vendor<s liability is waivable but any stipulationexempting the vendor from obligation to answer for eviction shall be void ifhe acted in bad faith.

>inds of waiver%!. onsciente – voluntarily made by the vendee without the

3nowledge and assumption of the ris3s of eviction. 9endor shallpay only the value of the thing sold at the time of eviction.*. Intencionda – made by the vendee with 3nowledge of the ris3sof eviction and with assumption of its conse2uences, in whichcase the vendor is not liable.

ii. arranty against non-apparent servitudes – contemplates a situationwherein an immovable sold is encumbered with a non-apparent burden.

!. 'ight of the vendeea. 'escission or

b. Indemnity (damages$

*. hen right cannot be exerciseda. If the non-apparent burden or servitude is registered orb. If vendee had 3nowledge of the encumbrance, whether it isregistered or not



NOTE: ction must be brought within one year from the execution of thedeed of sale.

iii. Warranty against hidden defets – the seller guarantees that thething sold is free from any hidden faults or defects or any charge or

encumbrance not declared or 3nown to the buyer.

Elements%!. :efect is serious or important*. :efect is hidden1. Exists at the time of the sale#. 9endee must give notice of the defect to the vendor within areasonable time". 'emedies must be brought within the period of 4 months fromdelivery of the thing or #? days from date of delivery in case ofanimals and

4. 6o waiver of the warranty

Documents

Notes_Warranties.doc