Part IV - Obligations of the Vendor (Conditions & Warranties) Flashcards
What are expressed warranty?
Any affirmation of fact or any promise by the seller relating to the thing is an express warranty if the natural tendency of such affirmation or promise is to induce the buyer to purchase the same and if the buyer purchases the thing relying thereon.
It’s not express warranty if it’s the opinion of the seller only, unless the seller made such affirmation or statement as an expert and it was relied upon by the buyer.
What are implied warranties?
(a) There is an implied warranty on the part of the seller that he has a right to sell the thing at the time when the ownership is to pass, and that the buyer shall from that time have and enjoy the legal and peaceful possession of the thing.
(b) An implied warranty that the thing shall be free from any hidden faults or defects, or any charge or encumbrance not declared or known to the buyer.
When does eviction take place?
Eviction shall take place whenever by a final judgement based on a right prior to the sale or an act imputable to the vendor, the vendee is deprived of the whole or of a part of the thing purchased.
Who is liable for eviction?
The buyer shall answer for the eviction even though nothing has been said in the contract.
The exceptions to this rule is when:
(a) There is a stipulation exempting the seller who is in good faith. If he is in bad faith, buyer is liable.
(b) The buyer waived his right to warranty with knowledge of the risk and consequences. If he only waived this right, the vendor shall only pay the value of the thing sold at the time of the eviction.
What are the requisites for the seller to be liable for eviction?
(a) There must be a final judgement rendered whereby the buyer loses the thing purchased
(b) Seller is summoned in the suit for eviction at the instance of the buyer
(c) The seller is made as co-defendant
What are the remedies for the buyer who was deprived of the whole or of the part of the thing purchased?
The buyer may demand from the seller:
(a) The return of the value of the thing at the time of the eviction, regardless if it is greater or lesser than the price of the sale.
(b) The income or fruits, if he has been ordered to deliver them to the party who won the suit against them.
(c) The costs of the suit
(d) The expenses of the contract if the buyer has paid them
(e) The damages and interests if the sale is made in bad faith
What is the rule on warranty against hidden defects?
The vendor shall be responsible for warranty against the hidden defects the thing sold may have, should they render it unfit for the use of which it is intended.
When is a seller not liable for warranty against hidden defects?
A seller is not liable for warranty against hidden defects on the following instances:
(a) Patent defects or those which may be visible, or for those which are not visible but the buyer is an expert, who by reason of his profession, should have known about them.
(b) It was stipulated that the seller won’t be liable and the seller also has no idea about the defect.
What is the rule if the thing sold is lost in consequence of the hidden defects?
If the seller is aware of the hidden defects, he shall bear the loss, and should be (a) obliged to return the price, (b) refund the expenses of the contract, and (c) damages.
If the seller is not aware of the hidden defects, he shall only (a) obliged to return the price, and (b) refund the expenses of the contract.
If the thing sold had any hidden defects and it was lost due to the fault of the buyer, buyer may demand of the seller the price which he paid, less the value which the thing had when it was lost. If the vendor is in bad faith, he shall pay damages to the vendee.
When should the action for the warranty of hidden defects be instituted?
Withing six months from the delivery of the thing. Otherwise, it’s already barred.
What are the remedies of the buyer in warranty against hidden defects?
(a) Withdrawing from the contract
(b) Demanding a proportionate reduction of the price.
In either case, the seller must pay damages.
