Obligations of the Vendee - law

8/17/2019 Obligations of the Vendee - law

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OBLIGATIONS OF THEVENDEEAnd the corresponding Rights/Remedies of the Vendor



2 PRINCIPAL OBLIGATIONSV

• To $ccept de%i&er'

• To p$' the price of the thing so%d

• VIS()(VIS#

• Se%%er*s Action for "$m$ges d+e to non($ccept$nce• Se%%er*s Action for the Price ,co%%ection s+it-• Se%%er*s Action for Tot$% Rescission



.AT IS ACC!PT

• Assent to 0ecome o1ner of the specic goods 1hen de%i&er'o3ered to the 0+'er4

• 5O"!S OF 5ANIF!STING ACC!PTANC!#• Express 6 0+'er intim$tes to the se%%er7 either &er0$%%' or in 1r

h$s $ccepted the goods4• Implied

• 6 0+'er does $n' $ct inconsistent 1ith se%%er*s o1nership• .hen he se%%s or $ttempts to se%% the goods• .hen he +ses or m$8es $%ter$tions in them in $ m$nner proper on%' for

• 6 0+'er ret$ins goods 0e'ond re$son$0%e time 1itho+t intim$ting his



B+'er*s right to e:$mine the

• P+rpose# To $scert$in 1hether the goods de%i&ered $re in 1ith the contr$ct

• !3ect if not $3orded to him# Buyer is not deemed to hathe goods.

• ence7 the right of e:$min$tion or inspection is $ condition pr

tr$nsfer of o1nership7 +n%ess there is $ stip+%$tion to the contr$r'• This right7 ho1e&er7 is not $0so%+te4 ,;on re<+est=-

• B+t this right m$' $%so 0e 1$i&ed 0' the 0+'er4 ,;CO"=-



ACC!PTANC! NOT A BACTION FOR "A5

• G4R4# Accept$nce does not disch$rge se%%er from %i$0i%it' i0re$ch of promise or 1$rr$nt'4

• There sho+%d 0e notice to se%%er of 0re$ch of p1$rr$nt' within reasonale time $fter 0+'er 8no1to 8no17 of s+ch 0re$ch4

•

P+rpose# To protect the se%%er $g$inst 0e%$ted c%$pre&ent him from m$8ing prompt in&estig$tion to detc$+se $nd e:tent of his %i$0i%it'

• !>C# !:press or imp%ied $greement of the p$rties4



IN CAS! OF "!LIV!CA

• B!T""" I# deli$er% to carrier 6 terms# goods sh$%% not 0e0' the c$rrier to the 0+'er +nti% he h$s p$id the price ,1hor not-

• G4R4# B+'er h$s no right to e:$mine the goods 0efore p$'ment o• B+t $fter de%i&er' $nd p$'ment7 0+'er m$' then s+0se<+ent%' e:$m

• !>C# B+'er h$s the right to e:$mine the goods 0efore p$'inence7 the right of e:$min$tion or inspection is $ condition precp$'ment of the price4

• 1.) Should it have been so agreed upon

• 2.) If it is so permitted by usage



R@L!# "!LIV!R? 5@ST B! COV!N"!! NOT BO@N" TO ACC!PT

"!

• !>C!PTION# ;+n%ess other1ise $greed=

• R@L!S GOV!RNING "!LIV!R? IN INSTALL5!NTS#• .here sep$r$te price h$s 0een :ed for e$ch ins

depends on .ON#• &here reach e'ects whole contract 6 in9+red p$rt' i

ref+sing to proceed f+rther $nd m$' th+s s+e the g+i%d$m$ges

• &here reach is di$isile 6 it 1i%% mere%' gi&e rise tocompens$tion for the p$rtic+%$r 0re$ch7 0+t not $ right to trecontr$ct $s 0ro8en



!FF!CT OF B@?!R*S .ROR!F@SAL TO A

• Tit%e of the goods p$sses to him from the mom$re p%$ced $t his dispos$%4• Being no1 the o1ner7 0+'er 0e$rs the ris8 of %o



.!R! B@?!R*S R!F@SACC!PT IS @ST

• G4R4# B+'er is not 0o+nd to ret+rn the goods to the se%%er4• It is s+cient if he noties him of his ref+s$% to $ccept4

• B+t if he does not ret+rn the goods7 he is in the position of $ 0$i%ee/d1ith the o0%ig$tion to t$8e re$son$0%e c$re of them4

• After notice7 it is the d+t' of the se%%er to t$8e de%i&er' of the goo• If7 $fter notice7 se%%er f$i%s to t$8e de%i&er'7 0+'er m$' rese%% the goo

• In this c$se7 se%%er 0e$rs the ris8 of %oss4• !>C# ;+n%ess other1ise $greed=



OBLIGATION TO PA? T!

• 2nd par., Art.152! ;If the time and place shh$&e 0een stip+%$ted7 the p$'ment m+st 0e $t $nd p%$ce of de%i&er' of the thing so%d4=



LIABILIT? FOR INT

• Sho+%d it h$&e 0een so stip+%$ted

• Sho+%d the thing so%d $nd de%i&ered prod+ce fr+its or inco

• Sho+%d &endee 0e in def$+%t7 from the time of 9+dici$% or e 9+dici$% dem$nd for the p$'ment of the price



.!N V!N"!! CAN S@PA?

• GRO@N"S#• If he is dist+r0ed in the possession or o1nership of the thing 0o+g• If he h$s $ 1e%%(gro+nded fe$r th$t his possession or o1nership 1

dist+r0ed 0' $ &indic$tor' $ction or forec%os+re of mortg$ge

•

!>A5PL!S#• Vindic$tor' $ction• Forec%os+re of mortg$ge

• @NTIL .!N CAN ! S@SP!N" PA?5!NT• @nti% the &endor h$s c$+sed the dist+r0$nce or d$nger to ce$se



.!N V!N"!! CAS@SP!N" PA?

• If the &endor gi&es sec+rit' for the ret+rn of the price in $ prop

• If it h$s 0een stip+%$ted th$t not1ithst$nding $n' s+ch conting&endee m+st m$8e p$'ment

• If the &endor h$s c$+sed the dist+r0$nce or d$nger to ce$se

• If the dist+r0$nce is $ mere $ct of tresp$ss

• If the &endee h$s f+%%' p$id the price



RIGTS OF AN @NPAI" S

• WHO IS AN UNPAID SELLER?

• Art4 D2D4 The se%%er of goods is deemed to 0e $n +np$id se%%the me$ning of this Tit%e#

• .hen the 1ho%e of the price h$s not 0een p$id or tenderedE• .hen $ 0i%% of e:ch$nge or other negoti$0%e instr+ment h$s 0een

condition$% p$'ment7 $nd the condition on 1hich it 1$s recei&ed 0ro8en 0' re$son of the dishonor of the instr+ment7 the inso%&enc0+'er7 or other1ise4



.AT "O!S T! T!R5 ;S!INC

• In $rtic%es D2D to DD the term se%%er inc%+des#• $n $gent of the se%%er to 1hom the 0i%% of %$ding h$s 0een indorse• $ consignor or $gent 1ho h$s himse%f p$id7 or is direct%' responsi

price7• or $n' other person 1ho is in the position of $ se%%er4



.AT AR! T! RIGTS @NPAI" S!

• Art4 D2H4 S+09ect to the pro&isions of this Tit%e7 not1ithst$ndo1nership in the goods m$' h$&e p$ssed to the 0+'er7 the +nof goods7 $s s+ch7 h$s#

• A %ien on the goods or right to ret$in them for the price 1hi%e he possession of themE

• In c$se of the inso%&enc' of the 0+'er7 $ right of stopping the goo

tr$nsit+ $fter he h$s p$rted 1ith the possession of themE• A right of res$%e $s %imited 0' this Tit%eE• A right to rescind the s$%e $s %i8e1ise %imited 0' this Tit%e4



NOT!# T!R! IS A FIFTR

• &here the ownership in the (oods has not passed to thethe +np$id se%%er h$s7 in $ddition to his other remedies $ right 1ithho%ding de%i&er' simi%$r to $nd coe:tensi&e 1ith his rights stopp$ge in tr$nsit+ 1here the o1nership h$s p$ssed to the 0+



.!N CAN T! @NPAI"!>!RCIS! IS RIGT TO POSS

• Art4 D2J4 S+09ect to the pro&isions of this Tit%e7 the +np$id sgoods 1ho is in possession of them is entit%ed to ret$in possesthem +nti% p$'ment or tender of the price in the fo%%o1ing c$se

• &here the (oods ha$e een sold witho)t an% stip)lation acredit+

• &here the (oods ha$e een sold on credit* )t the term o

has expired+• &here the )%er ecomes insol$ent"

• NB# The se%%er m$' e:ercise his right of %ien not"ithstanding th possession of the goods as agent or bailee for the buyer.



.AT IS T! !FF!CT IF IS PARTIAL "!L

• Art4 D2K4 .here $n +np$id se%%er h$s m$de p$rt de%i&er' of the ma% exercise his ri(ht o# lien on the remainder* +n%esde%i&er' h$s 0een m$de +nder s+ch circ+mst$nces $s to sho1 to 1$i&e the %ien or right of retention4



.!N "O!S T! @NPAI" LOS! IS RIGT TO POSS!

• Art4 D24 The +np$id se%%er of goods %oses his %ien thereon#• &hen he deli$ers the (oods to a carrier or other ailee #o

p)rpose o# transmission to the )%er witho)t reser$in( thownership in the (oods or the ri(ht to the possession the

• &hen the )%er or his a(ent law#)ll% otains possession o(oods+

•

B% wai$er thereo#"

• NB# The +np$id se%%er of goods7 h$&ing $ %ien thereon7 does no%ien 0' re$son on%' th$t he h$s o0t$ined 9+dgment or decree foof the goods4



RIGT OF STOPPA TRA

• Art4 DM4 S+09ect to the pro&isions of this Tit%e7• 1hen the 0+'er of goods is or 0ecomes inso%&ent7• the +np$id se%%er 1ho h$s p$rted 1ith the possession of the good

right of stopping them in tr$nsit+7• th$t is to s$'7 he ma% res)me possession o# the (oods at an

while the% are in transit* •

$nd he 1i%% then 0ecome entit%ed to the s$me rights in reg$rd to the 1o+%d h$&e h$d if he h$d ne&er p$rted 1ith the possession4



R!@ISIT!S FOR T! !>!OF STOPPAG! IN TR

• The se%%er m+st 0e +np$id4

• The 0+'er m+st 0e inso%&ent4

• The goods m+st 0e in tr$nsit4

• The se%%er m+st either $ct+$%%' t$8e possession of the goods sonotice of his c%$im to the c$rrier or other person in possession

• The se%%er m+st s+rrender the negoti$0%e doc+ment of tit%e7 if $0' the c$rrier or the 0$i%ee4

• The se%%er m+st 0e$r the e:penses of de%i&er' of the goods $fte:ercise of the right4



.!N AR! T! G;IN TRA

• Art4 D4 Goods $re in tr$nsit 1ithin the me$ning of the prec$rtic%e#

• From the time 1hen the' $re de%i&ered to $ c$rrier 0' %$nd7 1$teother 0$i%ee for the p+rpose of tr$nsmission to the 0+'er7 +nti% thhis $gent in th$t 0eh$%f7 t$8es de%i&er' of them from s+ch c$rrier 0$i%eeE

• If the goods $re re9ected 0' the 0+'er7 $nd the c$rrier or other 0$contin+es in possession of them7 e&en if the se%%er h$s ref+sed tothem 0$c84



.!N AR! T! GNO LONG!R ;IN TRA

• If the 0+'er7 or his $gent in th$t 0eh$%f7 o0t$ins de%i&er' of the0efore their $rri&$% $t the $ppointed destin$tionE

• If7 $fter the $rri&$% of the goods $t the $ppointed destin$tion7 tor other 0$i%ee $c8no1%edges to the 0+'er or his $gent th$t hegoods on his 0eh$%f $nd contin+es in possession of them $s 0$0+'er or his $gentE $nd it is imm$teri$% th$t f+rther destin$tion

goods m$' h$&e 0een indic$ted 0' the 0+'erE• If the c$rrier or other 0$i%ee 1rongf+%%' ref+ses to de%i&er the g

0+'er or his $gent in th$t 0eh$%f4



TA!

• If the goods $re de%i&ered to $ ship7 freight tr$in7 tr+c87 or $irp%ch$rtered 0' the 0+'er7 it is $ <+estion depending on the circ+of the p$rtic+%$r c$se7 1hether the' $re in the possession of ths+ch or $s $gent of the 0+'er4

• If p$rt de%i&er' of the goods h$s 0een m$de to the 0+'er7 or hith$t 0eh$%f7 the rem$inder of the goods m$' 0e stopped in tr$n+n%ess s+ch p$rt de%i&er' h$s 0een +nder s+ch circ+mst$nces $n $greement 1ith the 0+'er to gi&e +p possession of the 1hogoods4



.AT AR! T! T.O ,2-OF !>!RCISING T! RIG

• 0' o0t$ining $ct+$% possession of the goods or

• 0' gi&ing notice of his c%$im to the c$rrier or other 0$i%ee in 1hpossession the goods $re4

• S+ch notice m$' 0e gi&en either to the person in $ct+$% possessigoods or to his princip$%4

• In the %$tter c$se the notice7 to 0e e3ect+$%7 m+st 0e gi&en $t s+ch t

+nder s+ch circ+mst$nces th$t the princip$%7 0' the e:ercise of re$sodi%igence7 m$' pre&ent $ de%i&er' to the 0+'er4



I5POR

• .hen notice of stopp$ge in tr$nsit+ is gi&en 0' the se%%er to thother 0$i%ee in possession of the goods7 he m+st rede%i&er the or $ccording to the directions of7 the se%%er4

• The e:penses of s+ch de%i&er' m+st 0e 0orne 0' the se%%er4

• If7 ho1e&er7 $ negoti$0%e doc+ment of tit%e representing the go0een iss+ed 0' the c$rrier or other 0$i%ee7 he sh$%% not o0%igedor 9+stied in de%i&ering the goods to the se%%er +n%ess s+ch dorst s+rrendered for c$nce%%$tion4



.!N IS ;R!SAL!= ALLO.

• Art4 D4 .here the goods $re of perish$0%e n$t+re7• or 1here the se%%er e:press%' reser&es the right of res$%e in c$s

sho+%d m$8e def$+%t7

• or 1here the 0+'er h$s 0een in def$+%t in the p$'ment of the p+nre$son$0%e time7

• $n +np$id se%%er h$&ing $ right of %ien or h$&ing stopped the goodm$' rese%% the goods4

• e sh$%% not there$fter 0e %i$0%e to the origin$% 0+'er +pon the contrfor $n' prot m$de 0' s+ch res$%e7 0+t m$' reco&er from the 0+'er $n' %oss occ$sioned 0' the 0re$ch of the contr$ct of s$%e4

• .here $ res$%e is m$de7 $s $+thoried in this $rtic%e7 the 0+'er $c<+tit%e $s $g$inst the origin$% 0+'er4



IS PRIOR NOTIC! R!@

• It is not essenti$% to the &$%idit' of res$%e th$t notice of $n intentthe goods 0e gi&en 0' the se%%er to the origin$% 0+'er4

• B)t where the ri(ht to resell is not ased on the perishalethe (oods

• or )pon an express pro$ision o# the contract o# sale*• the gi&ing or f$i%+re to gi&e s+ch notice sh$%% 0e re%e&$nt in $n' iss+e i

<+estion 1hether the 0+'er h$d 0een in def$+%t for $n +nre$son$0%e ti

res$%e 1$s m$de4• It is not essenti$% to the &$%idit' of $ res$%e th$t notice of the tim

of s+ch res$%e sho+%d 0e gi&en 0' the se%%er to the origin$% 0+'er• The se%%er is 0o+nd to e:ercise re$son$0%e c$re $nd 9+dgment in m

res$%e7 $nd s+09ect to this re<+irement m$' m$8e $ res$%e either 0pri&$te s$%e4 He cannot* howe$er* directl% or indirectl% )% th





O. 5A? T! @NPAI" SR!S

• The tr$nsfer of tit%e sh$%% not 0e he%d to h$&e 0een rescinded 0se%%er +nti% he h$s m$nifested

• 0' notice to the 0+'er or 0' some other o&ert $ct $n intention to• It is not necess$r' th$t s+ch o&ert $ct sho+%d 0e comm+nic$ted to th

• 0+t the gi&ing or f$i%+re to gi&e notice to the 0+'er of the intention to resre%e&$nt in $n' iss+e in&o%&ing the <+estion 1hether the 0+'er h$d 0een$n +nre$son$0%e time 0efore the right of rescission 1$s $sserted4



.AT IS T! !FF!CT OF SGOO"S S@B!CT TO L

STOPPAG! IN TR• Art4 DD4 S+09ect to the pro&isions of this Tit%e7 the +np$id sof %ien or stopp$ge in tr$nsit+ is not a'ected % an% sale* odisposition of the goods 1hich the 0+'er m$' h$&e m$de7 +n%ese%%er h$s $ssented thereto4

• If7 ho1e&er7 $ negoti$0%e doc+ment of tit%e h$s 0een iss+ed for goseller#s lien or right of stoppage in transitu shall defeat the right

purchaser for value in good faith to "hom such document has be

negotiated, 1hether s+ch negoti$tion 0e prior or s+0se<+ent to tnotic$tion to the c$rrier7 or other 0$i%ee 1ho iss+ed s+ch doc+mse%%ers c%$im to $ %ien or right of stopp$ge in tr$nsit+4



LAST RIGT OF T! @S

• RIGT OF V!N"OR TO .ITOL" "!LIV!R? IN SAL! ON CR!"IT• Art4 DH4 The &endor is not 0o+nd to de%i&er the thing so%d in c$s

&endee sho+%d %ose the right to m$8e +se of the terms $s pro&ided K4

• .hen $fter the o0%ig$tion h$s 0een contr$cted7 he 0ecomes inso%&ent7gi&es $ g+$r$nt' or sec+rit' for the de0tE

• .hen he does not f+rnish to the creditor the g+$r$nties or sec+rities 1

promisedE• .hen 0' his o1n $cts he h$s imp$ired s$id g+$r$nties or sec+rities $ft

est$0%ishment7 $nd 1hen thro+gh $ fort+ito+s e&ent the' dis$ppe$r7 +immedi$te%' gi&es ne1 ones e<+$%%' s$tisf$ctor'E

• .hen the de0tor &io%$tes $n' +ndert$8ing7 in consider$tion of 1hich th$greed to the periodE

• .hen the de0tor $ttempts to $0scond4



S!LL!R*S ACTION FO

• &hen the ownership o# the (oods has passed to t$nd he 1rongf+%%' neg%ects or ref+ses to p$' for the price

• &hen the price is pa%ale on a certain da% $nd 1rongf+%%' neg%ects or ref+ses to p$' s+ch price7 irresde%i&er' or of tr$nsfer of tit%e

•

&hen the (oods cannot readil% e resold #or a reprice $nd the 0+'er 1rongf+%%' ref+ses to $ccept them ethe o1nership in the goods $s p$ssed



S!LL!R*S ACTION FOR "A5

• .here the 0+'er 1rongf+%%' neg%ects or ref+ses to $ccefor the goods he $greed to 0+'

• OT!R GRO@N"S#• In $n e:ec+tor' contr$ct7 1here the o1nership in the

not p$ssed7 $nd the se%%er c$nnot m$int$in $n $ction t• If the goods $re not 'et identied $t the time of the c

s+0se<+ent%'



5!AS@R! OF "A5

• Di'erence etween• CONTRACT/AGR!!" PRIC! 6 the $mo+nt of the o0%ig$tion 1hic

f$i%ed to f+%%%• 5AR!T/C@RR!NT PRIC! 6 the &$%+e of the goods 1hich the s

+pon his h$nds

• F!LL A,O!NT OF DA,AGE 6 if there is no $&$i%$0%e m$r8

the goods c$n 0e so%d $t the time• -.O/I,ATE DA,AGES more th$n the di3erence 0et1een t

price $nd the m$r8et price 6 $under special circumstances%,d$m$ges m$' 0e re$son$0%' $ttri0+ted to the non(performo0%ig$tion



5!AS@R! OF "A5AG!R!P@"IATI

CO@NT!R• L$0or performed $nd e:penses inc+rred for m$teri$% e#orecei&ing notice of the 0+'er*s rep+di$tion

• -ro0t he 1o+%d h$&e re$%ied if the s$%e h$d 0een perfor



Se%%er*s $ction for resc

• B!FOR! "!LIV!R?• .hen the 0+'er h$s rep)diated the contr$ct of s$%e• .hen the 0+'er h$s m$nifested his inailit% to perform hi

there+nder• .hen the 0+'er h$s committed $ reach of the contr$ct of s$%e

• &A'( *&(! @nder Art47 se%%er is re<+ired to gi&e notice of his erescission4

• AFT!R "!LIV!R? 6 se%%er m$' reco&er the &$%+e of 1h$t he h$s



.!N V!N"OR 5A? R!SAL! OF I55OVABL! PRO

• If he h$s re$son$0%e gro+nds to fe$r the %oss of immo&$0%e pAND its price

• Other1ise7 pro&isions of Art"1121 sh$%% 0e o0ser&ed4• Art4 4 The po1er to rescind o0%ig$tions is imp%ied in reciproc$% ones7

the o0%igors sho+%d not comp%' 1ith 1h$t is inc+m0ent +pon him4 The in9+red p$rt' m$' choose 0et1een the f+%%%ment $nd the reso0%ig$tion7 1ith the p$'ment of d$m$ges in either c$se4 e m$' $%so se

e&en $fter he h$s chosen f+%%%ment7 if the %$tter sho+%d 0ecome impossi0 The Co+rt sh$%% decree the rescission c%$imed7 +n%ess there 0e 9+st c$+the :ing of $ period4

This is +nderstood to 0e 1itho+t pre9+dice to the rights of third pers$c<+ired the thing7 in $ccord$nce 1ith Artic%es KD $nd KK $nd the 5o

• Note# This right is $pp%ic$0%e to 0oth cash sales $nd sales in ins



.!R! A@TO5ATIC R!SCISSION OF I55OVABL! PROP!RT? IS STIP

• Vendee m$' p$'7 e&en $fter e:pir$tion of period7 $s %ong $s nofor rescission of the contr$ct h$s 0een m$de +pon him either 90' $ not$ri$% $ct

• After the dem$nd7 the co+rt m$' not gr$nt him $ ne1 term4

•

When this right does not apply:• To s$%es on inst$%%ments of re$% propert' in 1hich the p$rties h$

the proced+re to 0e fo%%o1ed in the &endee f$i%ed to f+%%% his o0%• To $ mere promise to se%% ,e:ec+tor' contr$ct to se%%- 1here tit%e

the &endor +nti% f+%% p$'ment of the price



.!R! A@TO5ATIC R!SCISSION OOF 5OVABL! PROP!RT? IS STIP@

• Vendor c$n rescind7 as a matter o# ri(ht7 if the &ende$n' &$%id c$+se#

• Sho+%d not h$&e $ppe$red to recei&e de%i&er'• Sho+%d not h$&e tendered the price $t the s$me time

%onger period h$s 0een stip+%$ted for its p$'ment

•

+eason for the rule! Person$% properties $re not cm$int$ining $ st$0%e price in the m$r8et4 An' de%$' in themight c$+se the &endor gre$t pre9+dice4

Documents

Obligations of the Vendee - law