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Submitted by: BSA 3-2Arvin Jay T. Ramos

Articles 159-1599

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!"ere t"e #oods "ave not beendelivered to t"e buyer$ and t"e buyer"as re%udiated t"e contract o& sale$

or "as mani&ested "is inability to%er&orm "is obli#ations t"ereunder$ or"as committed a breac" t"ereo&$ t"e

seller may totally rescind t"e contracto& sale by #ivin# notice o& "is electionso to do to t"e buyer.

Article 159

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T"is article ("ic" deals (it" t"e instances("en t"e seller may totally rescind t"e

contract o& sale$ a%%lies only i& t"e #oods"ave not yet been delivered.

T"e automatic rescission "ere re)uiresnotice t"ereo& to t"e buyer.

!"en Seller *ay Totally Rescind t"e +ontract o& Sale

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!"ere t"e seller "as bro,en a contract todeliver s%ecic or ascertained #oods$ acourt may$ on t"e a%%lication o& t"e buyer$

direct t"at t"e contract s"all be %er&ormeds%ecically$ (it"out #ivin# t"e seller t"eo%tion o& retainin# t"e #oods on %aymento& dama#es. T"e ud#ment or decree may

be unconditional$ or u%on suc" terms andconditions as to dama#es$ %ayment o& t"e%rice and ot"er(ise$ as t"e court maydeem ust.

Article 159/

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0bserve t"at "ere t"e seller is #uilty"ence$ t"ere is no ri#"t o& retention on "is

%art even i& said seller is (illin# to %aydama#es.

ote t"at t"ere must be an order &rom t"ecourt &or t"e s%ecic %er&ormance.

ote &urt"er t"at t"e court may ma,e t"eorder on t"e a%%lication o& t"e buyer.

Rule !"en Seller as Bro,en a +ontract to 4eliverS%ecic or Ascertained oods

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!"ere t"ere is a breac" o& (arranty by t"e seller$t"e buyer may$ at "is election:

617 Acce%t or ,ee% t"e #oods and set u% a#ainst t"eseller$ t"e breac" o& (arranty by (ay o&

recou%ment in diminution or e8tinction o& t"e %rice627 Acce%t or ,ee% t"e #oods and maintain an

action a#ainst t"e seller &or dama#es &or t"e breac"o& (arranty

637 Re&use to acce%t t"e #oods$ and maintain anaction a#ainst t"e seller &or dama#es &or t"e breac"o& (arranty

Article 1599

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67 Rescind t"e contract o& sale and re&use to receive t"e #oods ori& t"e #oods "ave already been received$ return t"em or oer toreturn t"em to t"e seller and recover t"e %rice or any %art t"ereo&("ic" "as been %aid.

!"en t"e buyer "as claimed and been #ranted a remedy inanyone o& t"ese (ays$ no ot"er remedy can t"erea&ter be #ranted$(it"out %reudice to t"e %rovisions o& t"e second %ara#ra%" o&Article 1191.

!"ere t"e #oods "ave been delivered to t"e buyer$ "e cannotrescind t"e sale i& "e ,ne( o& t"e breac" o& (arranty ("en "eacce%ted t"e #oods (it"out %rotest$ or i& "e &ails to noti&y t"eseller (it"in a reasonable time o& t"e election to rescind$ or i& "e&ails to return or to oer to return t"e #oods to t"e seller insubstantially as #ood condition as t"ey (ere in at t"e time t"e

o(ners"i% (as trans&erred to t"e buyer. But i& deterioration orinury o& t"e #oods is due to t"e breac" or (arranty$ suc"deterioration or inury s"all not %revent t"e buyer &rom returnin#or oerin# to return t"e #oods to t"e seller and rescindin# t"esale.

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!"ere t"e buyer is entitled to rescind t"e sale andelects to do so$ "e s"all cease to be liable &or t"e %riceu%on returnin# or oerin# to return t"e #oods. ;& t"e

%rice or any %art t"ereo& "as already been %aid$ t"eseller s"all be liable to re%ay so muc" t"ereo& as "asbeen %aid$ concurrently (it" t"e return o& t"e #oods$or immediately a&ter an oer to return t"e #oods ine8c"an#e &or re%ayment o& t"e %rice.

!"ere t"e buyer is entitled to rescind t"e sale andelects to do so$ i& t"e seller re&uses to acce%t an oero& t"e buyer to return t"e #oods$ t"e buyer s"allt"erea&ter be deemed to "old t"e #oods as bailee &or

t"e seller$ but subect to a lien to secure %ayment o&any %ortion o& t"e %rice ("ic" "as been %aid$ and (it"t"e remedies &or t"e en&orcement o& suc" lien allo(edto an un%aid seller by Article 152

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657 ;n t"e case o& breac" o& (arranty o&)uality$ suc" loss$ in t"e absence o& s%ecialcircumstances s"o(in# %ro8imate dama#e o&a #reater amount$ is t"e dierence bet(eent"e value o& t"e #oods at t"e time o& deliveryto t"e buyer and t"e value t"ey (ould "ave"ad i& t"ey "ad ans(ered to t"e (arranty

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Remedies o& t"e Buyer i& Seller +ommits aBreac" o& !arranty

-T"e rst %ara#ra%" o& t"e Article enumeratest"e =our Remedies o& t"e buyer.

>ect i& Buyer Selects Any o& t"e =ourRemedies iven

-;& t"e buyer "as selected any o& t"e remedies$and #iven. o(ever$ t"e second %ara#ra%" o&Article 1911 (ill still a%%ly.

>ect i& Buyer Still Acce%ted t"e oods4es%ite is ?no(led#e o& t"e Breac" o&!arranty

-T"e 3rd %ara#ra%" o& t"e Article #ives t"e

eect #enerally$ o Rescission.