Article 1558 Formal summons to vendor essential.

Before a vendor may be legally liable for eviction is that he should be summoned in the suit for eviction at the instance of the vendee This is to give the vendor an opportunity to show that the action interposed against the vendee is unjust and to defend his title that he has transferred. In the absence of such summons, the vendor is not bound to his warranty Article 1559 Vendor to be made co-defendant requires a notification from the vendee which has been instituted against him to deprive him to the property purchased Article 1560 Servitude is an encumbrance imposed upon an immovable for the benefit of another immovable belonging to a different owner. Warranty against encumbrances (non- apparent) requisites: immovable sold is encumbered with non apparent burden or servitude not mentioned in the nature of non apparent servitude or burden is such that it must be presumed that the buyer would not have acquired it had he been aware thereof when breach of warranty exists: buyer may ask for rescission or indemnity warranty not applicable when non apparent burden or servitude is recorded in the Registry of Property unless there is expressed warranty that the thing is free from all burdens & encumbrances Article 1561 Warranty against hidden defects SELLER does not warrant patent defect; caveat emptor Except when hidden o subject matter may be movable or immovable o nature of hidden defect is such that it should render the subject matter unfit for the use of which it was intended or should diminish its fitness o had the buyer been aware, he would not have acquired it or would have given a lower price when defect is visible or even if visible if the buyer is an expert by reason of his trade or profession, seller is not liable obligation of seller for breach depends on whether he has knowledge of such defect or not o 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 and demanding proportionate reduction of price with damages in either case applicable to judicial sale except judgments debtor not liable for damages action to prescribe 6 months from delivery of subject matter Article 1962 Quality of goods state or condition

 implied warranty of fitness o the buyer, expressly or by implication, manifest to the seller the particular purpose for which the goods are acquired o the buyer relies upon the sellers skill or judgment whether he be the grower or manufacturer or not implied warranty of merchantability - where the goods are bought by description. o Warranty of merchantability is a warranty hat goods are reasonably fit for the general purpose for which they are sold o Warranty of fitness is a warranty that the goods are suitable for the special purpose of the buyer which will not be satisfied by mere fitness or general purposes. Article 1563 Under trade name defining what he wants, the buyer has exercised his own judgments instead of relying upon that of the seller Article 1564 1567 Sample not merchantable General rule: the sale or contract to sell through sample is that goods be like the sample. Buyers has no right of merchantability if the sample if he has inspected is not Sample subject to latent defect The defect in the goods, through inspection will not reveal and the buyer reasonably relies on the sellers skill or judgment. The buyers is entitled to goods like those which the sample seems to represent

The ignorance of the vendee does not relieve him from liability to the vendee for any hidden faults or defects in the thing sold.

Ellaine Mae S. Burayag BSA - 4

Article 1918 Principals Liability for Expenses: General Rule: Principal is liable for the expenses incurred by the agent Exceptions: (AFUS) If the agent acted in contravention of the principal's instructions, unless principal derives benefits from the contract When the expenses were due to the fault of the agent When the agent incurred them with knowledge that an unfavorable result would ensue, if the principal was not aware thereof when it was stipulated that the expenses would be borne by the agent, or that the latter would be allowed only a certain sum Article 1919 Modes Of Extinguishments Of Agency (EDWARD) by the expiration of the period for which the agency was constituted

 by the death, civil interdiction, insanity or insolvency of the principal or of the agent by the withdrawal of the agent by the accomplishment of the object or purpose of the agency By its revocation By the dissolution of the firm or corporation which entrusted or accepted the agency The list not exclusive; causes particular only to agency; may be extinguished by the modes of extinguishment of obligations in general whenever they are applicable, like loss of the thing and novation Agency is TERMINATED, as a matter of law, upon the outbreak of war. Modes of extinguishing an agency, generally: Agreement Subsequent acts of the parties which may be either: o By the act of both parties or by mutual consent o By the unilateral act of one of them3. By operation of law Note: Even if the reason for extinguishing the agency is not true, the agent cannot insist on reinstatement. The agents can only demand damages. Article 1920 Agency generally revocable at will by principal Done by principle its called revocation Done by the agent its called renunciation It is not always necessary for the agent to renounce the agency expressly. He can do so impliedly, such as: o o o where he has conducted himself in a manner incompatible with his duties as agent when he abandons the object of his agency and acts for himself in commiting a fraud upon his principal when he files a complaint against the principal and adopts an antagonistic attitude towards him

Liability of the principal for damage caused by revocation The principal is liable in damages occasioned by the wrongful discharge of the agent before the expiration of the period fixed. Kinds of revocation Express revocation Implied revocation

Article 1921 1922

Effect of revocation in relation to 3rd persons Agency to contract with third person its revocation will not prejudice such third person until notice thereof is given them Agency to contract with general public the innocent third persons dealing with the agent will not be prejudiced by the revocation before they had knowledge thereof. Sufficient warning can be made through news paper of general circulation.

Article 1923 Revocation by appointment of new agent Revocation does not become effective as between the principal and the agent until it is communicated to the agent The rights of the third persons who acted in good faith and without the knowledge of the revocation will not be prejudice thereby

Article 1924 General rule: The effect of direct management of the business by the principal himself will revoke the agency Exception: if the desire of the principal is to manage the business together with the agent

Article 1925 - 1926 Two or more principal is solidarily liable to the agent. Revocation by one of two or more principal must be made trough the power of attorney and can be made without the consent of the others. (art. 1925) Specific power granted to the new agent revoke the general power previously granter to the other agent (art. 1926) Article 1727 General rule: the principal may revoke an agency at will Exception: the agency is created for the interest of the principal and the third person the agency is created for the mutual interest of both the principal and agent

Ellaine Mae S. Burayag BSA - 4