obligations of the vendor 5

8/13/2019 Obligations of the Vendor 5

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Warranty

against Hidden

Defects


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Art. 1561. The vendor shall be responsible for warrantyagainst the hidden defects which the thing sold mayhave, should they render it unfit for the use for which itis intended, or should they diminish its fitness for such

use to such an extent that, had the vendee been awarethereof, he would not have acquired it or would have

given a lower price for it; but said vendor shall not beanswerable for patent defects or those which may be

visible, or for those which are not visible if the vendee isan expert who, by reason of his trade or profession,should have known them.


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Requisites

1. Defect must be hiddeno Not known and could not have been known

2. Must exist at the time the sale was made

3. Defect must be important/seriouso Renders the thing unfit or considerably decreases fitnesso unfit for the use: use must have been stated in the contract or can be inferred from the

nature of the object or occupation of the buyer

4. Vendee must give notice of defect to the vendor withinreasonable time

5. Action must be instituted within the statute of limitationso Art. 1571. Actions arising from the provisions of the preceding ten articles shall be barred

after six months, from the delivery of the thing sold. (rescission/ reduction of the price)

o Art. 1577. The redhibitory action, based on the faults or defects of animals, must bebrought within forty days from the date of their delivery to the vendee.


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Important considerations

SELLER does not warrant patent defect; caveat emptor

When defect is visible or even if not visible but buyer is an expert byreason of his trade or profession, seller is not liable

Subject matter may be movable or immovable

Had the buyer been aware, he would not have acquired it or wouldhave given a lower price

obligation of seller for breach depends on whether he has knowledgeof such defect or noto seller is aware seller should return price & refund expenses of contract with damages

o seller is not aware - seller should return price and interest & refund expenses ( no damages )

buyer may elect between withdrawing from contract or demandingproportionate reduction of price with damages in either case

applicable to judicial sale except that judgment debtor not liable fordamages


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Knowledge of Defect

Art. 1566. The vendor is responsible to the vendee for anyhidden faults or defects in the thing sold, even thoughhe was not aware thereof.

This provision shall not apply if the contrary has beenstipulated, and the vendor was not aware of thehidden faults or defects in the thing sold


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Caveat venditor: vendor is liable to the vendee for anyhidden faults or defects in the thing sold even though he

was not aware thereof

ignorance of the defect or good faith cannot be availed ofas a defense

Reason: seller has to repair the damage done

Exception: vendor acted in good faith


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Implied warranty of fitness

Art. 1562. In a sale of goods, there is an implied warranty orcondition as to the quality or fitness of the goods, as

follows:

Where the buyer, expressly or by implication, makes knownto the seller the particular purpose for which the goods areacquired, and it appears that the buyer relies on the seller'sskill or judgment (whether he be the grower ormanufacturer or not), there is an implied warranty thatthe goods shall be reasonably fit for such purpose;

Where the goods are brought by description from a sellerwho deals in goods of that description (whether he be thegrower or manufacturer or not), there is an impliedwarranty that the goods shall be of merchantable quality.


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Implied warranty of fitness

1. There is an implied warranty that the goods are reasonably fitfor a particular purpose:

2. Buyer, expressly or by implication, makes known to the seller

the particular purpose for which the goods are acquired buyer relies upon the sellers skill or judgment whether he be the

grower or manufacturer or not

goods are suitable for the special purpose of the buyer which will

not be satisfied by mere fitness for general purpose Quality of goods - state or condition

Purpose for holding seller liable: promote high standard ofbusiness and discourage unfair dealings


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Implied Warranty of Merchantability

Art. 1563. In the case of contract of sale of a specifiedarticle under its patent or other trade name, there is nowarranty as to its fitness for any particular purpose,unless there is a stipulation to the contrary.


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Implied warranty of merchantability

1. Goods are bought by description

2. Requires identity between what is described in the

contract and what is tendered Buyer defines what he wants by means of a trade name or

any other way: exercised his own judgment instead ofrelying upon that of the seller

fit for the general purpose of a thing


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Usage of Trade

Art. 1564. An implied warranty or condition as to thequality or fitness for a particular purpose may beannexed by the usage of trade.


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Usage of trade

- A trade practice that is so common in a particular region orvocation that an expectation of its being followed in agiven transaction is justified; a usual and customarypractice or set of practices connected with a particular typeof business or trade; for example, in mortgage loantransactions it is customary for the borrower to pay for anappraisal of the value of the property

Reason: parties are presumed to be acquainted with theusages of trade


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Sale by SampleArt. 1565. In the case of a contract of sale by sample, ifthe seller is a dealer in goods of that kind, there is animplied warranty that the goods shall be free from anydefect rendering them unmerchantable which would not

be apparent on reasonable examination of the sample.


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Sale by sample: goods must be like the sample Latent defect (inspection will not reveal): buyer is entitled

not simply to the goods like the sample but to goods likethose which the sample seem to represent merchantablegoods of that kind and character

obligations of the vendor 5

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