Sales Flashcards
What is the warranty against eviction?
A seller warrants a buyer against eviction, which is the buyer’s loss or risk of losing all or part of a thing due to a third party’s rights in the thing. The warranty extends to non-apparent conventional servitudes not declared.
Is the warranty against eviction implied in every sale?
Yes, the warranty against eviction is implied in every sale unless explicitly renounced by the buyer.
What remedies does a buyer have if evicted under a warranty sale?
Restitution of the price, restitution of fruits and revenues, lawsuit costs, and damages if the buyer was unaware of the eviction risk.
What happens if the sale is without warranty?
If the seller renounced the warranty, the buyer is entitled only to restitution of the price if they were unaware of the eviction risk.
What happens if the sale is at the buyer’s peril and risk?
The buyer gets nothing if they were aware of the eviction risk at the time of sale and declared they were buying at their own risk.
What happens in cases of partial eviction?
The buyer is entitled to a proportionate reduction in price.
What must a buyer do if threatened with eviction?
The buyer must timely notify the seller. Failure to do so results in losing warranty rights.
Can a buyer suspend payment if threatened with eviction?
Yes, unless the seller provides security.
What is the after-acquired title doctrine?
If a seller lacks title at the time of sale but later acquires it, the buyer retains rights under the warranty against eviction. However, if the buyer sues, they are not obligated to accept the title.
What is the warranty against redhibitory defects?
A seller warrants a buyer against hidden defects that either render the thing totally useless or significantly diminish its value such that the buyer would have paid less or not bought it at all.
What are the conditions for a defect to be redhibitory?
The defect must be non-apparent, have existed at the time of delivery, and render the thing useless or significantly reduce its value.
What is the presumption regarding defects appearing after delivery?
If a defect appears within three days of delivery or shortly after first use, it is presumed to have existed at the time of sale.
What are the buyer’s remedies for redhibitory defects?
If the defect makes the thing useless, the buyer can rescind the sale. If the defect only reduces value, the buyer can seek a price reduction.
How is a seller’s liability determined for redhibitory defects?
By their good faith or bad faith at the time of sale.
What are the obligations of a good-faith seller?
They must refund the purchase price and reasonable expenses if the thing is useless, or grant a price reduction if its value is diminished. They also have a chance to repair the defect before the sale is dissolved.
What are the obligations of a bad-faith seller?
They must refund the purchase price, reasonable expenses, and attorney’s fees. They do not have the right to repair the defect before dissolution.
What is the prescriptive period for redhibitory defects?
For a good-faith seller: two years from delivery or one year from defect discovery. For a bad-faith seller: one year from defect discovery or ten years from sale perfection.
Can the warranty against redhibitory defects be waived?
Yes, but the waiver must be clear, unambiguous, and brought to the buyer’s attention. ‘As is’ clauses are insufficient.
What is the implied warranty of fitness?
The seller warrants that the thing is fit for its ordinary use. If the buyer had a specific use in mind and relied on the seller’s expertise, the warranty extends to that use.
What are the buyer’s obligations in a sale?
The buyer must pay the purchase price and take delivery of the thing.
What happens if the buyer fails to take delivery?
The seller may recover damages and expenses for preserving the thing.
What happens if the buyer fails to pay the purchase price?
The seller may compel payment by offering delivery. If the buyer still does not pay, the seller may dissolve the sale or seek enforcement.
What can a seller do if a buyer breaches a contract to purchase a movable?
The seller may resell to a third party, and the buyer is responsible for any loss.
What is the right of redemption?
The seller retains the right to take back the thing within 10 years for immovables and 5 years for movables, provided the sale of an immovable is recorded.
