Warranties and Conditions Flashcards
CONDITION
An uncertain event/ contigency on the happening of which the obligation/ rights of he contracts depends.
In the context of a perfected contract of sale it is the compliance to each undertaking.
When is a condition can be considered a warranty? (Art. 1545)
If the other party has promised that the condition should happen or be performed, such first mentioned party may also treat the non-performance of the condition as a breach of warranty.
WARRANTY
A statement or representation made by the seller of goods, contemporaneously and as a part of the contract of sale, having reference to the character, quality, or title of the goods, and by which he promises to insure that certain facts are or shall be as he then represent them.
When is a warranty and EXPRESS WARRANTY? (Art. 1546)
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.
No affirmation of the value of the thing, nor any statement purporting to be a statement of the seller’s opinion only, shall be construed as a warranty UNLESS the seller made such affirmation or statement as an EXPERT and it was relied upon by the buyer.
What are the implied warranties, if no contrary intention appears? (Art. 1547 and 1562)
(1) as to the seller’s title;
(2) against hidden defects not declare or know to the buyer;
(3) as to the fitness or merchantibility;
(4) against eviction.
EVICTION (Art. 1548)
The judicial process, whereby the vendee is depriced of the whole or part of the thing purchased by virtue of a final judgment based on a right prior to the sale or an act imputable to the vendor.
What are elements for Warranty in case of Eviction?
(a) The vendee deprived in whole or in part of the thing purchased;
(b) by final judgment;
(c) based on a right prior to the sale or act imputable to the vendor;
(d) the vendor is summoned at the instance of the vendee (1558);
(e) there is no waiver on the part of the vendee (Art. 1548, par. 3)
Consciente (waiver; Art. 1554)
If the vendee has renounced the right to warranty in case of eviction, and eviction should take place…
The vendor shall only pay the value which the thing sold had at the time of the eviction.
Intencionada (waiver; Art. 1554)
Should the vendee have made the waiver with knowledge of the risks of eviction and assumed its consequences, the vendor shall NOT be liable.
When is a waiver VOID? (Art. 1553)
When the vendor acted in bad faith.
What are the rights of the vendee against the vendor in case of eviction? (Art. 1555)
(1) the return of the value, which the thing sold had at the time of the eviction, be it greater or less than the price of the sale;
(2) The income or fruits, if he has been ordered to deliver them to the party who won the suit against him;
(3) The costs of the suit which caused the eviction, and in a proper case, those of the suit brought against the vendor for the warranty;
(4) The expenses of the contract, if the vendee has paid them;
(5) The damages and interests, and ornamental expenses, if the sale was made in bad faith.
What are the rights of the vendee in case of partial eviction? (Art. 1556)
He may demand the rescission of the contract; but with the obligation to return the thing without other encumbrances than those which it had when he acquired it.
(He may exercise this right of action instead of enforcing the vendor’s liability for eviction)
Requisites for warranty against hidden defects
(a) The defect must be important or serious (1561);
(b) It must be hidden;
(c) It must exist at the time of the sale;
(d) The vendee must give notice of the defect to the vendor within reasonable time (1586)
(e) Action must be brought within the proper period;
(f) There must be no waiver of warranty.
Important and serious (Art. 1561)
… Should they render it unfit for the use for which it is intended; or
Should they diminish its fitness for such use to such an extent that, had the vendee been aware thereof, he would not have acquired it or would have given a lower price for it.
Caveat Venditor (Art.1566)
The vendor is responsible to the vendee for any hidden faults or defects in the thing sold, even though he was not aware thereof.
This provision shall NOT apply if the contrary has been stipulated, and the vendor was not aware of the hidden faults or defects in the thing sold. (caveat emptor)
