!"#$! &$'($)$& *+,-./+,-01 "2234 &"3 5"6#6 !

"72("86


762$! 93 &":;$##$ "77$ 8<2($&&$= *<5>"2$>? @"3 +-A +,-01
CnA1Lk 12: CCNDI1ICNS AND
WAkkAN1ILS

I. Cond|t|ons (Art|c|e 1S4S)

Art|c|e 1S4S.
Where the ob||gat|on of e|ther party to a contract of sa|e |s sub[ect to
any cond|t|on wh|ch |s not performed, such party may refuse to
proceed w|th the contract or he may wa|ve performance of the
cond|t|on. If the other party has prom|sed that the cond|t|on shou|d
happen or be performed, such f|rst ment|oned party may a|so treat the
nonperformance of the cond|t|on as a breach of warranty.

Where the ownersh|p |n the th|ng has not passed, the buyer may treat
the fu|f|||ment by the se||er of h|s ob||gat|on to de||ver the same as
descr|bed and as warranted express|y or by |mp||cat|on |n the contract
of sa|e as a cond|t|on of the ob||gat|on of the buyer to perform h|s
prom|se to accept and pay for the th|ng. (n)

1wo alLernaLlve remedles where obllgaLlon of Lhe oLher parLy Lo
a conLracL of sale ls sub[ecL Lo a condlLlon, and such ls noL
performed.
1. 8efusal Lo proceed wlLh conLracL.
2. Walve performance of Lhe condlLlon.
ulsLlncLlon beLween condlLlon lmposed on perfecLlon and
lmposed on performance. !"#$%" '( )"*%+ ", -..$/01 234 5)!-
226 78993:(
lallure Lo comply wlLh condlLlon lmposed upon perfecLlon of
Lhe conLracL resulLs ln fallure of a conLracL, whlle Lhe fallure Lo
comply wlLh a condlLlon lmposed on Lhe performance of an
obllgaLlon only glves Lhe oLher parLy Lhe opLlon elLher Lo refuse
Lo proceed wlLh sale or walve Lhe condlLlon. ;/,"%+$</ '(
=/>?*>/@ 666 5)!- AB6 72444:.
1


Cond|t|on |mposed on perfect|on Cond|t|on |mposed on
performance
lallure Lo comply resulLs ln fallure
of conLracL
lallure Lo comply resulLs ln Lhe
Lwo remedles belng avallable Lo
Lhe oLher parLy.

;/,"%+$</ '( =/>?*>/

Iacts: ln Lhe exerclse of Lhe auLhorlLy of Speclal ower Cf ALLorney, on
!anuary 20, 1989, Lhe helrs of Lhe laLe lranclsco C. LaforLeza
represenLed by 8oberLo Z. LaforLeza and Conzalo Z. LaforLeza, !r.
enLered lnLo a Memorandum of AgreemenL (ConLracL Lo Sell) wlLh Lhe
plalnLlff over Lhe sub[ecL properLy for Lhe sum of 630,000 payable as
follows:
30,000 -earnesL money, Lo be forfelLed ln favor of LaforLezas lf
Lhe sale ls noL effecLed due Lo Lhe faulL of Machuca
600,000 - upon lssuance of Lhe new cerLlflcaLe of LlLle ln Lhe
name of laLe lranclsco LaforLeza and upon execuLlon of an exLra
[udlclal seLLlemenL of Lhe decedenL's esLaLe wlLh sale ln favor of

1
"#$%&# '( )#*&+ #, -..%/01, 230 SC8A 223 (1993), -2/034 '( )-5 280 SC8A 336
(1997), "%.*6037 '( 80#&%42#, 349 SC8A 327 (2008).
!"#$! &$'($)$& *+,-./+,-01 "2234 &"3 5"6#6 !"72("86


762$! 93 &":;$##$ "77$ 8<2($&&$= *<5>"2$>? @"3 +-A +,-01
Machuca

aragraph 4 of Lhe Memorandum conLalned a provlslon LhaL: upon
lssuance of Lhe new LlLle, Lhe Machuca shall be noLlfled ln wrlLlng and he
shall have 30 days Lo produce Lhe balance of 600k whlch shall be pald Lo
LaforLeza upon execuLlon of Lhe exLra[udlclal seLLlemenL. Machuca pald
earnesL money of 30k plus renLals for sub[ecL properLy. upon fallure of
Machuca Lo comply wlLh Lhe paymenL of Lhe balance, LaforLezas
lnformed Lhe formed LhaL Lhey were cancellng Lhe conLracL. Machuca
requesLed LhaL he lnLends Lo Lender paymenL of Lhe balance whlch was
refused by Lhe LaforLezas who lnslsLed for Lhe resclsslon of Lhe
memorandum. Machuca flled an acLlon for speclflc performance

Issue: WheLher Lhe conLracL execuLed by Lhe parLles ls a conLracL of sale
or a conLracL Lo sell

ne|d: CCn18AC1 Cl SALL Anu LLASL. 1he Memorandum of AgreemenL
shows LhaL Lhe LransacLlon beLween Lhe peLlLloners and respondenL was
one of sale and lease. A conLracL of sale ls a consensual conLracL and ls
perfecLed aL Lhe momenL Lhere ls a meeLlng of Lhe mlnds upon Lhe Lhlng
whlch ls Lhe ob[ecL of Lhe conLracL and upon Lhe prlce. lrom LhaL
momenL Lhe parLles may reclprocally demand performance sub[ecL Lo
Lhe provlslons of Lhe law governlng Lhe form of conLracLs. ln Lhls case,
Lhere was a perfecLed agreemenL beLween Lhe peLlLloners and
respondenL whereby LaforLezas obllgaLed Lhemselves Lo Lransfer Lhe
ownershlp of and dellver Lhe house and loL and Machuca Lo pay Lhe
prlce amounLlng Lo 630k. All Lhe elemenLs of a conLracL of sale were
Lhus presenL. Powever, Lhe balance of Lhe purchase prlce was Lo be pald
only upon Lhe lssuance of Lhe new cerLlflcaLe of LlLle ln lleu of Lhe one ln
Lhe name of Lhe laLe lranclsco LaforLeza and upon Lhe execuLlon of an
exLra[udlclal seLLlemenL of hls esLaLe.

rlor Lo Lhe lssuance of Lhe reconsLlLuLed" LlLle, Machuca was already
placed ln possesslon of Lhe house and loL as lessee Lhereof for 6 monLhs
aL a monLhly raLe of 3,300k. lL was sLlpulaLed LhaL should Lhe lssuance of
Lhe new LlLle and execuLlon of Lhe exLra[udlclal seLLlemenL be
compleLed prlor Lo explraLlon of 6monLh perlod, Machuca would be
llable only for Lhe renLals perLalnlng Lo Lhe perlod commenclng from Lhe
daLe of Lhe execuLlon of Lhe agreemenL up Lo Lhe execuLon of Lhe
exLra[udlclal seLLlemenL.

ln Lhls case, Lhe 6-monLh perlod merely delayed Lhe demandablllLy of
Lhe conLracL of sale and dld noL deLermlne perfecLlon for afLer Lhe
explraLlon of Lhe 6 monLh perlod, Lhere was a absoluLe obllgaLlon on Lhe
parL of LaforLezas and Machuca Lo comply wlLh Lhe Lerms of Lhe sale.
1he facL LhaL afLer Lhe explraLlon of Lhe 6-monLh perlod, Machuca
would reLaln possesslon of Lhe house and loL wlLhouL need of paylng
renLals for Lhe use Lherefore, clearly lndlcaLed LhaL Lhe parLles
conLemplaLed LhaL ownershlp over Lhe properLy would already be
Lransferred by LhaL Llme.

WhaL furLher lndlcaLed LhaL Lhls was a conLracL of sale was Lhe paymenL
of earnesL money. LarnesL money ls someLhlng of value Lo show LhaL
buyer was really ln earnesL, and glven Lo Lhe seller Lo blnd Lhe bargaln.
Whenever earnesL money ls glven ln a conLracL of sale, lL ls consldered
as parL of Lhe purchase prlce and proof of Lhe perfecLlon of Lhe conLracL.

Doctr|ne:
!"#$! &$'($)$& *+,-./+,-01 "2234 &"3 5"6#6 !"72("86


762$! 93 &":;$##$ "77$ 8<2($&&$= *<5>"2$>? @"3 +-A +,-01

ln a Sale wlLh AssumpLlon of MorLgage," Lhe assumpLlon of
morLgage ls a condlLlon Lo Lhe seller's consenL so LhaL wlLhouL
approval by Lhe morLgagee, no sale ls perfecLed. ln such case,
Lhe seller remalns Lhe owner and morLgagor of Lhe properLy and
reLalns Lhe rlghL Lo redeem Lhe foreclosed properLy. C!/#"1 '(
)-@ 2D9 5)!- 88E 7899D:(
8
8uL such condlLlon ls deemed
fulfllled when Lhe seller Lakes any acLlon Lo prevenL lLs
happenlng( F$ ;$"G '( HGI@ A88 5)!- 6E8 72484:(
o ConLracL of sale Lo become effecLlve upon happenlng of
Lhe condlLlon. J$K%1 ", L1>/G0/% '( )"*%+ ", -..$/01@ 2E8
5)!- 8DA 7899D:( non-happenlng dld noL affecL valldlLy
of Lhe conLracL only Lhe effecLlvlLy.
1here has arlsen here a confuslon ln Lhe concepLs of valldlLy and
Lhe efflcacy of a conLracL. under ArLlcle 1318 of Clvll Code, Lhe
essenLlal requlslLes of a conLracL are: consenL of Lhe conLracLlng
parLles, ob[ecL cerLaln whlch ls Lhe sub[ecL maLLer of Lhe
conLracL and cause of Lhe obllgaLlon whlch ls esLabllshed.
AbsenL one of Lhe above, no conLracL can arlse. Conversely,
where all are presenL, Lhe resulL ls a valld conLracL. Powever,
some parLles lnLroduce varlous klnds of resLrlcLlons or
modallLles, Lhe lack of whlch wlll noL, however, affecL Lhe
valldlLy of Lhe conLracL. 1hus, a provlslon Lhls ConLracL of Sale
of rlghLs, lnLeresLs and parLlclpaLlons shall become effecLlve
only upon Lhe approval by Lhe Ponorable CourL," ln Lhe evenL of
non-approval by Lhe courLs, affecL only Lhe effecLlvlLy and noL

1
93:/4 ;+%%0 )#&.( '( )#*&+ #, -..%/01, 391 SC8A 90 (2002).
Lhe valldlLy of Lhe conLracL of sale. J$K%1 ", M$N%" L1>/G0/% '(
)"*%+ ", -..$/01@ 2E8 5)!- 8DA 7899D:.

J$K%1 ", M$N%" L1>/G0/% '( )"*%+ ", -..$/01

Iacts: 1he Pelrs of Carl-an execuLed a ueed of Sale of 8lghLs, lnLeresLs,
and arLlclpaLlon over a parcel of undlvlded land ln favor of Lhe Pelrs of
Lscanlar. lL was sLlpulaLed LhaL Lhe conLracL shall become effecLlve only
upon approval of Lhe Cll of negros CccldenLal." 1he Pelrs of Lscanlar
falled Lo pay Lhe balance of Lhe purchase prlce, buL Lhe Pelrs of Carl-an
never demanded paymenL and conLlnued Lo accepL belaLed paymenLs.
1hey laLer on sold Lhelr lnLeresLs over Lhe same land Lo Lhe Chuas and
assalled Lhe valldlLy of Lhe ueed of Sale Lhey execuLed wlLh Lhe Pelrs of
Lscanlar. 1he lower courLs annulled Lhe conLracL for noL havlng Lhe
approval of Lhe courL as sLlpulaLed.

Issue: WheLher or noL Lhe ueed of Sale Lo Lhe Pelrs of Lscanlar ls valld

ne|d: ?LS. 1here ls a dlsLlncLlon beLween Lhe valldlLy and effecLlvlLy.
Cnly Lhe effecLlvlLy was made sub[ecL Lo Lhe condlLlon. So long as all Lhe
requlslLes (consenL, sub[ecL maLLer, and prlce) are presenL, as ln Lhls
case, Lhe conLracL ls already perfecLed. noneLheless, Lhe lnLenL of Lhe
parLles clearly manlfesLs Lhelr lnLenLlon Lo glve efflcacy Lo Lhe conLracL.
ln facL, Lhe vendors conLlnued Lo accepL paymenLs. 1haL belng Lhe case,
Lhe sale ln favor of Lhe Pelrs of Lscanlar musL be preferred as lL ls a valld
and subslsLlng one.

Doctr|ne:

!"#$! &$'($)$& *+,-./+,-01 "2234 &"3 5"6#6 !"72("86


762$! 93 &":;$##$ "77$ 8<2($&&$= *<5>"2$>? @"3 +-A +,-01
1he phrase as ls, where ls" ln sale perLalns solely Lo Lhe
physlcal condlLlon of Lhe Lhlng sold, noL Lo lLs legal slLuaLlon.
-11$+1 M%K'/+K</+K"G O%*1+ '( O(P( LG+$%.%K1$1@ 3ED 5)!- BE8
72449:(
1he vendor ls bound Lo Lransfer Lhe ownershlp of and dellver, as
well as warranL Lhe Lhlng whlch ls Lhe ob[ecL of Lhe sale. -11$+1
M%K'/+K</+K"G O%*1+ '( O(P( LG+$%.%K1$1@ 3ED 5)!- BE8 72449:(

II. Cond|t|ons '$%1*1 Warrant|es.
When ownershlp has noL passed, buyer may LreaL Lhe
fulflllmenL of Lhe seller of hls obllgaLlon under Lhe conLracL as a
condlLlon for hls obllgaLlon Lo accepL and pay.
lf Lhe parLy promlsed LhaL a condlLlon would be performed or
would happen, oLher parLy may LreaL non-performance of such
as a breach of warranLy.
o Such sLlpulaLlon elevaLes Lhe condlLlon Lo a warranLy
o And enLlLle Lhe oLher parLy Lo damages

Cond|t|on Warranty
non-happenlng of condlLlon
does noL amounL Lo a breach
non-fulflllmenL of warranLy
consLlLuLes a breach
Coes lnLo rooL of exlsLence of
Lhe obllgaLlon
Coes lnLo performance
May consLlLuLe an obllgaLlon ln lLself
MusL be sLlpulaLed by Lhe
parLles
May form parL of Lhe obllgaLlon by
provlslon of law, even wlLhouL
sLlpulaLlon.
May aLLach Lo Lhe seller or Lo
Lhe buyer
8elaLes Lo sub[ecL maLLer lLself, or
obllgaLlons of Lhe seller as Lo Lhe
sub[ecL maLLer.

M"Q$% )"##$%>K/0 /GN RGN*1+%K/0 )"%.( '( )"*%+ ", -..$/01,
2DB 5)!- 39D 7899D:(

M"Q$% )"##$%>K/0 /GN RGN*1+%K/0 )"%.( '( )"*%+ ", -..$/01

Iacts: ower Commerclal Corp enLered lnLo a conLracL of sale wlLh Lhe
Culambao spouses. lL agreed Lo assume Lhe morLgages Lhereon. A ueed
of AbsoluLe Sale wlLh AssumpLlon of MorLgage was execuLed. ower
Commerclal Corp falled Lo seLLle Lhe morLgage debL conLracLed by Lhe
spouses, Lhus lL could noL underLake Lhe proper acLlon Lo evlcL Lhe
lessees on Lhe loL. ower Commerclal Corp LhereafLer soughL Lo resclnd
Lhe conLracL of sale alleglng LhaL lL falled Lo Lake acLual and physlcal
possesslon of Lhe loL.

Issue: WheLher or noL Lhere was a breach of warranLy on Lhe parL of Lhe
spouses LhaL lL would evlcL Lhe lessees

ne|d: nC. llrsL, such condlLlon LhaL Lhe Culambao spouses would have
Lo evlcL Lhe lessees was noL sLlpulaLed ln Lhe conLracL. 1hus, lL cannoL be
consldered a condlLlon lmposed upon lLs perfecLlon. ln facL, ower
Commerclal Corp. was well aware of Lhe presence of Lhe LenanLs
Lhereln. lL was also glven conLrol over Lhe sald loL and lL endeavored Lo
LermlnaLe Lhe occupaLlon of lLs acLual LenanLs. Also, slnce lL was ower
Commerclal LhaL knowlngly underLook Lhe rlsk of evlcLlng Lhe lessees, lL
cannoL now clalm LhaL Lhere was a breach of warranLy on Lhe parL of Lhe
vendor.

!"#$! &$'($)$& *+,-./+,-01 "2234 &"3 5"6#6 !"72("86


762$! 93 &":;$##$ "77$ 8<2($&&$= *<5>"2$>? @"3 +-A +,-01
III. Lxpress Warrant|es (Art|c|e 1S46)

Art|c|e 1S46.
Any aff|rmat|on of fact or any prom|se by the se||er re|at|ng to the
th|ng |s an express warranty |f the natura| tendency of such
aff|rmat|on or prom|se |s to |nduce the buyer to purchase the same,
and |f the buyer purchase the th|ng re|y|ng thereon. No aff|rmat|on of
the va|ue of the th|ng, nor any statement purport|ng to be a statement
of the se||er's op|n|on on|y, sha|| be construed as a warranty, un|ess
the se||er made such aff|rmat|on or statement as an expert and |t was
re||ed upon by the buyer. (n)

A. Def|n|t|on
A warranLy ls a sLaLemenL or represenLaLlon made by Lhe seller
of goods, conLemporaneously and as parL of Lhe conLracL of
sale, havlng reference Lo Lhe characLer, quallLy or LlLle of Lhe
goods, and by whlch he promlses or underLakes Lo lnsure LhaL
cerLaln facLs are or shall be as he Lhen represenLs Lhem -GI '(
)"*%+ ", -..$/01@ 3AD 5)!- 36 7244E:(
A warranLy ls an afflrmaLlon of facL or any promlse made by a
vendor ln relaLlon Lo Lhe Lhlng sold. 1he declslve LesL ls wheLher
Lhe vendor assumes Lo asserL a facL of whlch Lhe vendee ls
lgnoranL. CS""NT$/% M?K0K..KG$1@ RG>( '( 5T@ BDB 5)!- B2D
72443:(

8. kequ|s|tes and L|ab|||ty for Lxpress Warrant
8reach of an express warranLy makes Lhe seller llable for
damages. 1he followlng requlslLes musL be esLabllshed ln order
LhaL Lhere be an express warranLy ln sale: (1) Lhe express
warranLy musL be an afflrmaLlon of facL or any promlse by Lhe
seller relaLlng Lo Lhe sub[ecL maLLer of Lhe sale, (2) Lhe naLural
Lendency of such afflrmaLlon or promlse ls Lo lnduce Lhe buyer
Lo purchase Lhe Lhlng, and (3) Lhe buyer purchases Lhe Lhlng
relylng on such afflrmaLlon or promlse Lhereon. C)/%%/1>"1"@ P%(
'( )-@ BDD 5)!- AAA 72443:(
1he prlnclple of 7/'%/+ %$.+#& only requlres Lhe purchaser Lo
exerclse care and aLLenLlon ordlnarlly exerclsed by prudenL men
ln llke buslness affalrs, and only applles Lo defecLs whlch are
open and paLenL Lo Lhe servlce of one exerclslng such care. lL
can only be applled where lL ls shown or conceded LhaL Lhe
parLles Lo Lhe conLracL sLand on equal fooLlng and have equal
knowledge or equal means of knowledge and Lhere ls no
relaLlon of LrusL or confldence beLween Lhem. lL does noL apply
Lo a represenLaLlon LhaL amounLs Lo a warranLy by Lhe seller
and Lhe slLuaLlon requlres Lhe buyer Lo rely upon such promlse
or afflrmaLlon. S*KG?/Q/ '( M$".0$, BAE 5)!- 2DE 72443:.
1


S*KG?/Q/ '( M$".0$

Iacts: !alme Culnhawa ls engaged ln Lhe buslness of selllng brand new
vehlcles, and had a showroom dlsplaylng hls producLs. Culnhawa
purchased a brand new MlLsublshl L-300 from Manlla. Culnhawa's
drlver, Leopoldo Clayan, drove Lhe van from Manlla Lo naga. Powever,
Clayan suffered a hearL aLLack durlng Lhe Lrlp causlng Lhe damage Lo Lhe
under chassls slnce Lhe lefL fronL Llre had Lo be replaced. 1hls was
repalred and Lhe van was puL on dlsplay ln Culnhawa's showroom. 1hls

1
<&# =/42 "%/0+> ?%'( )#&.( '( )0/*4/4, 316 SC8A 681 (2007)
!"#$! &$'($)$& *+,-./+,-01 "2234 &"3 5"6#6 !"72("86


762$! 93 &":;$##$ "77$ 8<2($&&$= *<5>"2$>? @"3 +-A +,-01
same van was laLer sold Lo Spouses Sllo who are engaged ln Lhe buslness
of buylng garmenLs ln Manlla and selllng Lhem ln naga. 1hey saw Lhe
van ln Culnhawa's showroom and lnspecLed lLs lnLerlor buL noL Lhe
under chassls. 1hey also dld noL conducL a LesL drlve, and so boughL Lhe
van wlLhouL any knowledge of Lhe damage lL had prevlously lncurred.
AzoLea, Lhe sales manager, was Lhe one who LransacLed wlLh Lhe
Spouses Sllo and furnlshed Lhe couple wlLh a Servlce Manual conLalnlng
Lhe warranLy Lerms and condlLlons. 1he day afLer Lhe van was boughL by
Lhe spouses, !osephlne Sllo (wlfe) wenL Lo Manlla wlLh Clenda lngol
and Lhe laLLer's husband (drlver). Cn Lhe way back, Lhey heard a
squeaklng sound and laLer dlscovered LhaL lL was caused by parLs
underneaLh Lhe vehlcle LhaL were welded LogeLher. Culnhawa lnslsLed
LhaL Lhe defecLs were mere facLory defecLs. As Lhe defecLs perslsLed, Lhe
spouses requesLed LhaL Culnhawa replace Lhe van wlLh 2 Charade-
ualhaLsu vehlcles wlLhln a week or Lwo, wlLh Lhe addlLlonal cosLs Lo be
Laken from Lhelr downpaymenL. Powever, Lhe spouses laLer asked for
Lhe resclsslon of Lhe conLracL upon dlscoverlng LhaL Lhe van was really
noL brand new.

Issue: WheLher or noL Lhere were fraudulenL represenLaLlons by
Culnhawa.

ne|d: ?LS. 1he Supreme CourL ruled LhaL !alme Culnhawa ls gullLy of
oLher decelLs. 1he CourL polnLed ouL LhaL Lhe crlme could be commlLLed
by omlsslon. lf, ln a conLracL of sale, Lhe vendor knowlngly allowed Lhe
vendee Lo be decelved as Lo Lhe Lhlng sold ln a maLerlal maLLer by falllng
Lo dlsclose an lnLrlnslc clrcumsLance LhaL ls vlLal Lo Lhe conLracL,
knowlng LhaL Lhe vendee ls acLlng upon Lhe presumpLlon LhaL no such
facL exlsLs, decelL ls accompllshed by Lhe suppresslon of Lhe LruLh.
AzoLea knew LhaL Lhe van had flgured ln an accldenL, was damaged and
had Lo be repalred. neverLheless, Lhe van was placed ln Lhe showroom,
Lhus maklng lL appear Lo Lhe publlc LhaL lL was a brand new unlL. 1he
peLlLloner was mandaLed Lo reveal Lhe foregolng facLs Lo Lhe prlvaLe
complalnanL.

Doctr|ne:

AfflrmaLlon of value or sLaLemenL of seller's oplnlon ls noL a
warranLy (ArLlcle 1341). unless seller made such sLaLemenL as
an experL, and was relled upon by Lhe buyer.
o 1he law allows conslderable laLlLude Lo seller's
sLaLemenLs, or dealer's Lalk, and experlence Leaches
LhaL lL ls exceedlngly rlsky Lo accepL lL aL lLs face value.
AsserLlons concernlng Lhe properLy whlch ls Lhe sub[ecL
of a conLracL of sale, or ln regard Lo lLs quallLles and
characLerlsLlcs, are Lhe usual and ordlnary means used
by sellers Lo obLaln a hlgh prlce and are always
undersLood as affordlng Lo buyers no ground for
omlLLlng Lo make lnqulrles. A man who relles upon such
an afflrmaLlon made by a person whose lnLeresL mlghL
so readlly prompL hlm Lo exaggeraLe Lhe value of hls
properLy does so as hls perll, and musL Lake Lhe
consequences of hls own lmprudence." C5"GI>" '(
5$00G$%@ 6D M?K0( 23B 7898D:(
AsserLlons concernlng Lhe properLy's characLerlsLlcs are Lhe
usual and ordlnary means of sellers Lo geL a hlgh prlce. A man
who relles upon such afflrmaLlon...does so aL hls own perll.
-</%%/I/ '( S/T@ 32 M?K0( 399 7892E:
!"#$! &$'($)$& *+,-./+,-01 "2234 &"3 5"6#6 !"72("86


762$! 93 &":;$##$ "77$ 8<2($&&$= *<5>"2$>? @"3 +-A +,-01

IV. Imp||ed Warrant|es (Art|c|e 1S47)

Art|c|e 1S47.
In a contract of sa|e, un|ess a contrary |ntent|on appears, there |s:

(1) An |mp||ed warranty on the part of the se||er that he has a r|ght to
se|| the th|ng at the t|me when the ownersh|p |s to pass, and that the
buyer sha|| from that t|me have and en[oy the |ega| and peacefu|
possess|on of the th|ng,

(2) An |mp||ed warranty that the th|ng sha|| be free from any h|dden
fau|ts or defects, or any charge or encumbrance not dec|ared or known
to the buyer.

1h|s Art|c|e sha|| not, however, be he|d to render ||ab|e a sher|ff,
auct|oneer, mortgagee, p|edgee, or other person profess|ng to se|| by
v|rtue of author|ty |n fact or |aw, for the sa|e of a th|ng |n wh|ch a th|rd
person has a |ega| or equ|tab|e |nterest. (n)

A. Def|n|t|on
lmplled WarranLles (deflnlLlon) ! Lhose whlch by law consLlLuLe
parL of every conLracL of sale, wheLher or noL Lhe parLles were
aware of or lnLended Lhem.
Who ls llable? Genera| ku|e: Cnly a seller ls bound by Lhe
lmplled warranLles.
o Lxcept|on: Lxpress sLlpulaLlon ln conLracL may make Lhe
agenL of Lhe seller bound by Lhese.

8. Warranty 1hat Se||er nas k|ght to Se||
1he lmplled warranLy LhaL seller has Lhe rlghL Lo sell Lhe Lhlng aL
Lhe Llme Lhe ownershlp ls Lo pass refers only Lo Lhe Lransfer of
ownershlp aL Lhe polnL of consummaLlon, nC1 any
represenLaLlon as Lo ownershlp aL Lhe polnL of perfecLlon.
lL shall noL be appllcable Lo render llable a sherlff, aucLloneer,
morLgagee, pledgee or any oLher person professlng Lo sell by
vlrLue of auLhorlLy ln facL or law.
o lor Lhe sale of a Lhlng ln whlch a Lhlrd person has a
legal/equlLable lnLeresL
1here can be no legal walver of Lhls warranLy wlLhouL changlng
baslc naLure of Lhe relaLlonshlp
o unless lL amounLs Lo clear assumpLlon of rlsk on Lhe
parL of Lhe buyer

C. Warranty Aga|nst Lv|ct|on (Art|c|es 1S48-1S60)

Art|c|e 1S48.
Lv|ct|on sha|| take p|ace whenever by a f|na| [udgment based on a r|ght
pr|or to the sa|e or an act |mputab|e to the vendor, the vendee |s
depr|ved of the who|e or of a part of the th|ng purchased.

1he vendor sha|| answer for the ev|ct|on even though noth|ng has
been sa|d |n the contract on the sub[ect.

1he contract|ng part|es, however, may |ncrease, d|m|n|sh, or suppress
th|s |ega| ob||gat|on of the vendor. (147Sa)

Art|c|e 1S49.
!"#$! &$'($)$& *+,-./+,-01 "2234 &"3 5"6#6 !"72("86


762$! 93 &":;$##$ "77$ 8<2($&&$= *<5>"2$>? @"3 +-A +,-01
1he vendee need not appea| from the dec|s|on |n order that the
vendor may become ||ab|e for ev|ct|on. (n)

Art|c|e 1SS0.
When adverse possess|on had been commenced before the sa|e but
the prescr|pt|ve per|od |s comp|eted after the transfer, the vendor
sha|| not be ||ab|e for ev|ct|on. (n)

Art|c|e 1SS1.
If the property |s so|d for nonpayment of taxes due and not made
known to the vendee before the sa|e, the vendor |s ||ab|e for ev|ct|on.
(n)

Art|c|e 1SS2.
1he [udgment debtor |s a|so respons|b|e for ev|ct|on |n [ud|c|a| sa|es,
un|ess |t |s otherw|se decreed |n the [udgment. (n)

Art|c|e 1SS3.
Any st|pu|at|on exempt|ng the vendor from the ob||gat|on to answer
for ev|ct|on sha|| be vo|d, |f he acted |n bad fa|th. (1476)

Art|c|e 1SS4.
If the vendee has renounced the r|ght to warranty |n case of ev|ct|on,
and ev|ct|on shou|d take p|ace, the vendor sha|| on|y pay the va|ue
wh|ch the th|ng so|d had at the t|me of the ev|ct|on. Shou|d the
vendee have made the wa|ver w|th know|edge of the r|sks of ev|ct|on
and assumed |ts consequences, the vendor sha|| not be ||ab|e. (1477)

Art|c|e 1SSS.
When the warranty has been agreed upon or noth|ng has been
st|pu|ated on th|s po|nt, |n case ev|ct|on occurs, the vendee sha|| have
the r|ght to demand of the vendor:

(1) 1he return of the va|ue wh|ch the th|ng so|d had at the t|me of the
ev|ct|on, be |t greater or |ess than the pr|ce of the sa|e,

(2) 1he |ncome or fru|ts, |f he has been ordered to de||ver them to the
party who won the su|t aga|nst h|m,

(3) 1he costs of the su|t wh|ch caused the ev|ct|on, and, |n a proper
case, those of the su|t brought aga|nst the vendor for the warranty,

(4) 1he expenses of the contract, |f the vendee has pa|d them,

(S) 1he damages and |nterests, and ornamenta| expenses, |f the sa|e
was made |n bad fa|th. (1478)

Art|c|e 1SS6.
Shou|d the vendee |ose, by reason of the ev|ct|on, a part of the th|ng
so|d of such |mportance, |n re|at|on to the who|e, that he wou|d not
have bought |t w|thout sa|d part, he may demand the resc|ss|on of the
contract, but w|th the ob||gat|on to return the th|ng w|thout other
encumbrances that those wh|ch |t had when he acqu|red |t.

ne may exerc|se th|s r|ght of act|on, |nstead of enforc|ng the vendor's
||ab|||ty for ev|ct|on.

1he same ru|e sha|| be observed when two or more th|ngs have been
!"#$! &$'($)$& *+,-./+,-01 "2234 &"3 5"6#6 !"72("86


762$! 93 &":;$##$ "77$ 8<2($&&$= *<5>"2$>? @"3 +-A +,-01
[o|nt|y so|d for a |ump sum, or for a separate pr|ce for each of them, |f
|t shou|d c|ear|y appear that the vendee wou|d not have purchased
one w|thout the other. (1479a)

Art|c|e 1SS7.
1he warranty cannot be enforced unt|| a f|na| [udgment has been
rendered, whereby the vendee |oses the th|ng acqu|red or a part
thereof. (1480)

Art|c|e 1SS8.
1he vendor sha|| not be ob||ged to make good the proper warranty,
un|ess he |s summoned |n the su|t for ev|ct|on at the |nstance of the
vendee. (1481a)

Art|c|e 1SS9.
1he defendant vendee sha|| ask, w|th|n the t|me f|xed |n the ku|es of
Court for answer|ng the comp|a|nt, that the vendor be made a co-
defendant. (1482a)

Art|c|e 1S60.
If the |mmovab|e so|d shou|d be encumbered w|th any non-apparent
burden or serv|tude, not ment|oned |n the agreement, of such a
nature that |t must be presumed that the vendee wou|d not have
acqu|red |t had he been aware thereof, he may ask for the resc|ss|on of
the contract, un|ess he shou|d prefer the appropr|ate |ndemn|ty.
Ne|ther r|ght can be exerc|sed |f the non-apparent burden or serv|tude
|s recorded |n the keg|stry of roperty, un|ess there |s an express
warranty that the th|ng |s free from a|| burdens and encumbrances.

W|th|n one year, to be computed from the execut|on of the deed, the
vendee may br|ng the act|on for resc|ss|on, or sue for damages.

WarranLy agalnsL evlcLlon ls an lmplled warranLy LhaL when
ownershlp wlll pass, buyer shall have legal and peaceful
possesslon.
vendor shall answer for Lhe evlcLlon even lf Lhere ls no
sLlpulaLlon regardlng evlcLlon
1he seller, ln declarlng LhaL he owned and had clean LlLle Lo Lhe
vehlcle, gave an lmplled warranLy of LlLle, and ln pledglng LhaL
he wlll defend Lhe same from all clalms or any clalm
whaLsoever [and] wlll save Lhe vendee from any sulL by Lhe
governmenL of Lhe 8epubllc of Lhe hlllpplnes," he gave a
warranLy agalnsL evlcLlon, and Lhe prescrlpLlve perlod Lo flle a
breach Lhereof ls slx monLhs afLer Lhe dellvery of Lhe vehlcle.
-GI '( )"*%+ ", -..$/01, 3AD 5)!- 36 7244E:(

-GI '( )"*%+ ", -..$/01

Iacts: under a "car-swapplng" scheme, 8runo Soledad sold hls
MlLsublshl CS8 sedan 1982 model Lo !alme Ang. lor hls parL, Ang
conveyed Lo Soledad hls MlLsublshl Lancer model 1988. Ang, a buyer
and seller of used vehlcles, laLer offered Lhe MlLsublshl CS8 for sale
Lhrough lar LasLern MoLors, a second-hand auLo dlsplay cenLer. 1he
vehlcle was evenLually sold Lo aul 8ugash. 8efore Lhe deed could be
reglsLered ln 8ugash's name, however, Lhe vehlcle was selzed by vlrLue
of a wrlL of replevln on accounL of Lhe alleged fallure of 8onaldo anes,
Lhe owner of Lhe vehlcle prlor Lo Soledad, Lo pay Lhe morLgage debL
consLlLuLed Lhereon.
!"#$! &$'($)$& *+,-./+,-01 "2234 &"3 5"6#6 !"72("86


762$! 93 &":;$##$ "77$ 8<2($&&$= *<5>"2$>? @"3 +-A +,-01

1o secure Lhe release of Lhe vehlcle, Ang pald 8A llnance. Soledad
refused Lo relmburse, desplLe repeaLed demands, drawlng Ang Lo
charge hlm for LsLafa wlLh abuse of confldence. 8y 8esoluLlon, Lhe ClLy
rosecuLor's Cfflce dlsmlssed Lhe complalnL for lnsufflclency of
evldence, drawlng Ang Lo flle for consecuLlve complalnLs for damages
agalnsL Soledad before Lhe 8eglonal 1rlal CourL (81C) of Cebu ClLy.
SubsequenLly, Lhe 81C rendered [udgmenL ln favor of Ang "for Lhe sake
of [usLlce and equlLy, and ln consonance wlLh Lhe saluLary prlnclple of
non-enrlchmenL aL anoLher's expense. 1he 81C Lhen ordered Soledad Lo
pay Ang Lhe amounL Lhe laLLer pald Lo 8A llnance.

Soledad Lhen appealed Lo Lhe AppellaLe CourL, whlch reverses Lhe
declslon of Lhe 81C. 1he CourL of Appeals dlsmlssed Ang's peLlLlon on
Lhe ground LhaL Lhe flllng of sald complalnL seeklng Lhe awardlng of
damages for breach of warranLy has already prescrlbed.

Issue: WheLher or noL Ang's cause of acLlon had noL yeL prescrlbed
when he flled Lhe complalnL

ne|d: ?LS. ln declarlng LhaL he owned and had clean LlLle Lo Lhe vehlcle
aL Lhe Llme Lhe ueed of AbsoluLe Sale was forged, Soledad gave an
lmplled warranLy of LlLle. ln pledglng LhaL he "wlll defend Lhe same from
all clalms or any clalm whaLsoever and wlll save Lhe vendee from any
sulL by Lhe governmenL of Lhe 8epubllc of Lhe hlllpplnes," Soledad gave
a warranLy agalnsL evlcLlon.

Clven Ang's buslness of buylng and selllng used vehlcles, he could noL
have merely relled on Soledad's afflrmaLlon LhaL Lhe car was free from
llens and encumbrances. Pe was expecLed Lo have Lhoroughly verlfled
Lhe car's reglsLraLlon and relaLed documenLs.

Slnce whaL Soledad, as seller, gave was an lmplled warranLy, Lhe
prescrlpLlve perlod Lo flle a breach Lhereof ls slx monLhs afLer Lhe
dellvery of Lhe vehlcle, followlng ArLlcle 1371. 8uL even lf Lhe daLe of
flllng of Lhe acLlon ls reckoned from Lhe daLe peLlLloner lnsLlLuLed hls
flrsL complalnL for damages on november 9, 1993, and noL on !uly 13,
1996 when he flled Lhe complalnL sub[ecL of Lhe presenL peLlLlon, Lhe
acLlon [usL Lhe same had prescrlbed, lL havlng been flled 16 monLhs
afLer !uly 28, 1992, Lhe daLe of dellvery of Lhe vehlcle

Doctr|ne:

1. When 1here Is 8reach Cf 1h|s Warranty
a. urchaser has been deprlved of/evlcLed from Lhe whole
or parL of Lhe Lhlng sold
" 1he buyer need noL reslsL Lhe evlcLlon.
b. LvlcLlon ls by flnal [udgmenL
" 1he warranLy cannoL be enforced unLll a flnal
[udgmenL has been rendered whereby Lhe
buyer loses Lhe Lhlng acqulred or a parL Lhereof.
" 1he buyer need noL appeal from Lhe declslon ln
order LhaL Lhe seller may become llable for
evlcLlon.
c. 8asls Lhereof ls a rlghL prlor Lo Lhe sale made by Lhe
seller
d. Seller has been summoned and made co-defendanL ln
Lhe sulL for evlcLlon aL Lhe lnsLance of Lhe buyer
!"#$! &$'($)$& *+,-./+,-01 "2234 &"3 5"6#6 !"72("86


762$! 93 &":;$##$ "77$ 8<2($&&$= *<5>"2$>? @"3 +-A +,-01
" ln order Lo consLlLuLe noLlce of evlcLlon Lo Lhe
seller, Lhe seller musL have been made a parLy
Lo Lhe case.
WarranLy cannoL be enforced agalnsL
seller when buyer merely malled seller
a copy of Lhe opposlLlon of buyer Lo Lhe
evlcLlon sulL. Seller musL be summoned
ln Lhe sulL for evlcLlon aL Lhe lnsLance of
Lhe buyer (ArLlcle 1338), and be made a
co-defendanL (ArLlcle 1339), or made a
Lhlrd-parLy defendanL. L1>/0$% '( )"*%+
", -..$/01@ 86E 5)!- 8 (89E3:(
8

" 1hls ls Lhe only condlLlon LhaL ls requlred Lo be
complled wlLh by Lhe vendee. Cnce Lhls ls
proven, Lhe buyer's rlghL Lo Lhe warranLy ls
perfecL, and Lhe seller cannoL seL up anyLhlng
agalnsL lL. P"'$00/G" '( ;*/0?/+K@ BD M?K0( 6D8
78923:
no acLlon for breach of Lhls warranLy when buyer was well
aware of Lhe presence of LenanLs, and even underLook Lhe [ob
of e[ecLlng Lhese squaLLers. M"Q$% )"##$%>K/0 '( )-@ 2DB 5)!-
39D 7899D:

2. Lv|ct|on In art (Art|c|e 1SS6)

3. art|cu|ar Causes G|ven 8y Law (Art|c|e 1SS0 - 1SS1)


1
)/43@/&%1 A3/4/ '( A#&&%B#1, 21 hll. 127 (1911), C(D( A*/@#4 '( )-, 94 SC8A
413 (1979).
4. App||cab|||ty to Iud|c|a| Sa|es (Art|c|e 1SS2)
8u1 ln Lhe followlng cases:
o 5/G+K/I" ;/GN F$'( )"%.( '( )"*%+ ", -..$/01@ 2DA 5)!-
ADB 7899D:, Lhe CourL ruled LhaL a buyer aL execuLlon
sales Lakes properLy sub[ecL Lo superlor rlghL of oLher
parLles. 1herefore, Lhe [udgmenL debLor-seller ls noL
llable for evlcLlon.
o CaveaL empLor applles ln execuLlon sales, and Lhe
sherlff does noL warranL Lhe LlLle Lo Lhe properLy sold by
hlm. lL ls noL lncumbenL upon hlm Lo place purchaser ln
possesslon. -00*%$ =/G*,/>+*%KGI@ RG>( '( )"*%+ ",
-..$/01@ 899 5)!- 2E3 78998:
No Warranty Aga|nst Lv|ct|on When Lxecut|on Sa|e - ln
volunLary sales, vendor can be expecLed Lo defend hls LlLle
because of hls warranLy Lo Lhe vendees buL no such obllgaLlon ls
owed by Lhe owner whose land ls sold aL execuLlon sale.
C5/G+K/I" ;/GN F$'( )"%.( '( )-@ 2DA 5)!- ADB 7899D:(
o 8U1 SLLU Art|c|e 1SS2
ALLy. SanLlago: ln [udlclal sales, someLlmes whaL ls belng sold ls
noL Lhe properLy of Lhe [udlclal debLor, buL LhaL of Lhe
guaranLor. 1he owner ln Lhls case cannoL be held llable for
warranLy of evlcLlon, buL raLher lL ls [udgmenL-debLor who
should be held llable for evlcLlon.

S. Amounts Ior Wh|ch Se||er Is L|ab|e In Case Cf Lv|ct|on (Art|c|e
1SSS)

6. Wa|ver Cf Warranty And Lffects (Art|c|e 1SS3)
LffecL of walver depends on naLure of such walver. WheLher:
!"#$! &$'($)$& *+,-./+,-01 "2234 &"3 5"6#6 !"72("86


762$! 93 &":;$##$ "77$ 8<2($&&$= *<5>"2$>? @"3 +-A +,-01
o lL ls a general or speclflc walver, and
o uone ln good falLh or bad falLh on seller's parL
lf seller acLed ln bad falLh, Lhen any sLlpulaLlon exempLlng seller
from answerlng evlcLlon shall be vold. ArLlcle 1333.
lf buyer merely renounces Lhe warranLy ln general Lerms, and
wlLhouL knowledge of a parLlcular rlsk, and evlcLlon Lakes place,
Lhe seller shall only pay Lhe value of Lhlng aL Llme of evlcLlon.
o Ceneral walver llmlLs llablllLy of seller.
lf buyer walved wlLh knowledge of rlsks (speclflc walver) seller
shall noL be llable.
o Lven when Lhere ls no speclflc walver, buyer cannoL
hold seller llable when he ls aware of a Lhlrd parLy clalm
(8u?L8 MuS1 8L ln CCCu lAl1P). P= O*/<"G '( )-@ 9B
5)!- B86 789D4:

D. Warranty Aga|nst Non-Apparent Serv|tudes (Art|c|es 1S60)
1. kequ|s|tes for Warranty Aga|nst Non-Apparent Serv|tude
a. lmmovable sold ls encumbered by non-apparenL
burden/servlLude, noL menLloned ln Lhe agreemenL.
b. naLure of such makes lL so LhaL Lhe buyer would noL
have acqulred Lhe lmmovable had be been aware of lL.

2. 1h|s warranty does not app|y
a. When servlLude ls menLloned ln Lhe agreemenL
b. lf Lhe non-apparenL burden ls recorded ln Lhe 8eglsLry
of ueeds
o unless Lhere ls an express warranLy LhaL Lhe Lhlng ls free
from all burdens and encumbrances.

3. kemed|es and rescr|pt|ve er|od
8uyer may brlng acLlon for resclsslon or sue for damages wlLhln
one (1) year from execuLlon of Lhe deed.
lf Lhls has elapsed, he may only brlng an acLlon for damages
wlLhln one year from when he dlscovered Lhe servlLude.

L. Warranty Aga|nst n|dden Defects (Art|c|es 1S61-1S80)

Art|c|e 1S61.
1he vendor sha|| be respons|b|e for warranty aga|nst the h|dden
defects wh|ch the th|ng so|d may have, shou|d they render |t unf|t for
the use for wh|ch |t |s |ntended, or shou|d they d|m|n|sh |ts f|tness for
such use to such an extent that, had the vendee been aware thereof,
he wou|d not have acqu|red |t or wou|d have g|ven a |ower pr|ce for |t,
but sa|d vendor sha|| not be answerab|e for patent defects or those
wh|ch may be v|s|b|e, or for those wh|ch are not v|s|b|e |f the vendee |s
an expert who, by reason of h|s trade or profess|on, shou|d have
known them. (1484a)

Art|c|e 1S62.
In a sa|e of goods, there |s an |mp||ed warranty or cond|t|on as to the
qua||ty or f|tness of the goods, as fo||ows:

(1) Where the buyer, express|y or by |mp||cat|on, makes known to the
se||er the part|cu|ar purpose for wh|ch the goods are acqu|red, and |t
appears that the buyer re||es on the se||er's sk||| or [udgment (whether
he be the grower or manufacturer or not), there |s an |mp||ed warranty
that the goods sha|| be reasonab|y f|t for such purpose,

!"#$! &$'($)$& *+,-./+,-01 "2234 &"3 5"6#6 !"72("86


762$! 93 &":;$##$ "77$ 8<2($&&$= *<5>"2$>? @"3 +-A +,-01
(2) Where the goods are brought by descr|pt|on from a se||er who
dea|s |n goods of that descr|pt|on (whether he be the grower or
manufacturer or not), there |s an |mp||ed warranty that the goods sha||
be of merchantab|e qua||ty. (n)

Art|c|e 1S63.
In the case of contract of sa|e of a spec|f|ed art|c|e under |ts patent or
other trade name, there |s no warranty as to |ts f|tness for any
part|cu|ar purpose, un|ess there |s a st|pu|at|on to the contrary. (n)

Art|c|e 1S64.
An |mp||ed warranty or cond|t|on as to the qua||ty or f|tness for a
part|cu|ar purpose may be annexed by the usage of trade. (n)

Art|c|e 1S6S.
In the case of a contract of sa|e by samp|e, |f the se||er |s a dea|er |n
goods of that k|nd, there |s an |mp||ed warranty that the goods sha|| be
free from any defect render|ng them unmerchantab|e wh|ch wou|d not
be apparent on reasonab|e exam|nat|on of the samp|e. (n)

Art|c|e 1S66.
1he vendor |s respons|b|e to the vendee for any h|dden fau|ts or
defects |n the th|ng so|d, even though he was not aware thereof.

1h|s prov|s|on sha|| not app|y |f the contrary has been st|pu|ated, and
the vendor was not aware of the h|dden fau|ts or defects |n the th|ng
so|d. (148S)

Art|c|e 1S67.
In the cases of art|c|es 1S61, 1S62, 1S64, 1S6S and 1S66, the vendee
may e|ect between w|thdraw|ng from the contract and demand|ng a
proport|onate reduct|on of the pr|ce, w|th damages |n e|ther case.
(1486a)

Art|c|e 1S68.
If the th|ng so|d shou|d be |ost |n consequence of the h|dden fau|ts,
and the vendor was aware of them, he sha|| bear the |oss, and sha|| be
ob||ged to return the pr|ce and refund the expenses of the contract,
w|th damages. If he was not aware of them, he sha|| on|y return the
pr|ce and |nterest thereon, and re|mburse the expenses of the contract
wh|ch the vendee m|ght have pa|d. (1487a)

Art|c|e 1S69.
If the th|ng so|d had any h|dden fau|t at the t|me of the sa|e, and
shou|d thereafter be |ost by a fortu|tous event or through the fau|t of
the vendee, the |atter may demand of the vendor the pr|ce wh|ch he
pa|d, |ess the va|ue wh|ch the th|ng had when |t was |ost.

If the vendor acted |n bad fa|th, he sha|| pay damages to the vendee.
(1488a)

Art|c|e 1S70.
1he preced|ng art|c|es of th|s Subsect|on sha|| be app||cab|e to [ud|c|a|
sa|es, except that the [udgment debtor sha|| not be ||ab|e for damages.
(1489a)

Art|c|e 1S71.
Act|ons ar|s|ng from the prov|s|ons of the preced|ng ten art|c|es sha||
!"#$! &$'($)$& *+,-./+,-01 "2234 &"3 5"6#6 !"72("86


762$! 93 &":;$##$ "77$ 8<2($&&$= *<5>"2$>? @"3 +-A +,-01
be barred after s|x months, from the de||very of the th|ng so|d. (1490)

Art|c|e 1S72.
If two or more an|ma|s are so|d together, whether for a |ump sum or
for a separate pr|ce for each of them, the redh|b|tory defect of one
sha|| on|y g|ve r|se to |ts redh|b|t|on, and not that of the others, un|ess
|t shou|d appear that the vendee wou|d not have purchased the sound
an|ma| or an|ma|s w|thout the defect|ve one.

1he |atter case sha|| be presumed when a team, yoke pa|r, or set |s
bought, even |f a separate pr|ce has been f|xed for each one of the
an|ma|s compos|ng the same. (1491)

Art|c|e 1S73.
1he prov|s|ons of the preced|ng art|c|e w|th respect to the sa|e of
an|ma|s sha|| |n ||ke manner be app||cab|e to the sa|e of other th|ngs.
(1492)

Art|c|e 1S74.
1here |s no warranty aga|nst h|dden defects of an|ma|s so|d at fa|rs or
at pub||c auct|ons, or of ||ve stock so|d as condemned. (1493a)

Art|c|e 1S7S.
1he sa|e of an|ma|s suffer|ng from contag|ous d|seases sha|| be vo|d.

A contract of sa|e of an|ma|s sha|| a|so be vo|d |f the use or serv|ce for
wh|ch they are acqu|red has been stated |n the contract, and they are
found to be unf|t therefor. (1494a)

Art|c|e 1S76.
If the h|dden defect of an|ma|s, even |n case a profess|ona| |nspect|on
has been made, shou|d be of such a nature that expert know|edge |s
not suff|c|ent to d|scover |t, the defect sha|| be cons|dered as
redh|b|tory.

8ut |f the veter|nar|an, through |gnorance or bad fa|th shou|d fa|| to
d|scover or d|sc|ose |t, he sha|| be ||ab|e for damages. (149S)

Art|c|e 1S77.
1he redh|b|tory act|on, based on the fau|ts or defects of an|ma|s, must
be brought w|th|n forty days from the date of the|r de||very to the
vendee.
1h|s act|on can on|y be exerc|sed w|th respect to fau|ts and defects
wh|ch are determ|ned by |aw or by |oca| customs. (1496a)

Art|c|e 1S78.
If the an|ma| shou|d d|e w|th|n three days after |ts purchase, the
vendor sha|| be ||ab|e |f the d|sease wh|ch cause the death ex|sted at
the t|me of the contract. (1497a)

Art|c|e 1S79.
If the sa|e be resc|nded, the an|ma| sha|| be returned |n the cond|t|on
|n wh|ch |t was so|d and de||vered, the vendee be|ng answerab|e for
any |n[ury due to h|s neg||gence, and not ar|s|ng from the redh|b|tory
fau|t or defect. (1498)

Art|c|e 1S80.
In the sa|e of an|ma|s w|th redh|b|tory defects, the vendee sha|| a|so
!"#$! &$'($)$& *+,-./+,-01 "2234 &"3 5"6#6 !"72("86


762$! 93 &":;$##$ "77$ 8<2($&&$= *<5>"2$>? @"3 +-A +,-01
en[oy the r|ght ment|oned |n art|c|e 1S67, but he must make use
thereof w|th|n the same per|od wh|ch has been f|xed for the exerc|se
of the redh|b|tory act|on. (1499)

1. L|ab|||ty for n|dden Defects
Seller shall be responslble when...
a. naLure of hldden defecL ls such LhaL lL would render Lhe
sub[ecL manner unflL for Lhe use for whlch lL was
lnLended.
b. ulmlnlsh lLs flLness Lo such an exLenL LhaL buyer would
noL have boughL lL or he would have pald a lower prlce
for lL.
noLe: Seller responslble even lf he was noL aware of Lhese
hldden defecLs. ArLlcle 1366(1)
Seller noL answerable for paLenL defecLs, or Lhose whlch are
vlslble.
o Lven for Lhose whlch are lnvlslble, lf Lhe buyer should
know abouL Lhem by reason of hls Lrade/professlon
1he warranLy applles Lo boLh movable and lmmovable
Seller's agenL can 6> /E&%%$%4+ be llable for Lhe warranLy
agalnsL hldden defecLs. C5>?#KN /GN HV$%0T@ RG>( '( !P;
=/%+KG$<@ 8AA 5)!- B96 789EE:(

2. kequ|s|tes for 8reach
A hldden defecL ls one whlch ls unknown or could noL have been
known Lo Lhe buyer. under Lhe law, Lhe requlslLes Lo recover on
accounL of hldden defecLs are as follows: (a) 1he defecL musL be
hldden, (b) 1he defecL musL exlsL aL Lhe Llme Lhe sale was made,
(c) 1he defecL musL ordlnarlly have been excluded from Lhe
conLracL, (d) 1he defecL, musL be lmporLanL (render Lhe Lhlng
unflL or conslderably decreases flLness), (e) 1he acLlon musL be
lnsLlLuLed wlLhln Lhe sLaLuLe of llmlLaLlons. W*+%K#KC X$$N1 )"%.(
'( )"*%+ ", -..$/01, BB8 5)!- 63D 7244B:.
1


W*+%K#KC X$$N1 )"%.( '( )"*%+ ", -..$/01

Iacts: LvangellsLa spouses purchased feeds from nuLrlmlx. 1hey refused
Lo pay Lhelr unseLLled debL clalmlng LhaL Lhousands of Lhelr llvesLock
were polsoned by Lhe nuLrlmlx feeds. nuLrlmlx sued Lhem for collecLlon
of money. 1he spouses counLered wlLh a sulL for LhaL Llme, Lhey may
have already been conLamlnaLed.

Issue: WheLher or noL nuLrlmlx ls gullLy of breach of warranLy due Lo
hldden defecLs

ne|d: nC. ln Lhe sale of anlmal feeds, Lhere ls an lmplled warranLy LhaL lL
ls reasonably flL and sulLable Lo be used for Lhe purpose whlch boLh
parLles conLemplaLed. 1o be able Lo prove llablllLy on Lhe basls of breach
of lmplled warranLy, Lhree Lhlngs musL be esLabllshed by Lhe
respondenLs.
llrsL ls LhaL Lhey susLalned ln[ury because of Lhe producL, Lhe
Second ls LhaL Lhe ln[ury occurred because Lhe producL was
defecLlve or unreasonably unsafe, and
llnally, Lhe defecL exlsLed when Lhe producL lefL Lhe hands of
Lhe peLlLloner.


1
F4'%1+$%4+1 G ?%'%0#.$%4+5 F47( '( )-, 162 SC8A 636 [1988]).
!"#$! &$'($)$& *+,-./+,-01 "2234 &"3 5"6#6 !"72("86


762$! 93 &":;$##$ "77$ 8<2($&&$= *<5>"2$>? @"3 +-A +,-01
A manufacLurer or seller of a producL cannoL be held llable for any
damage allegedly caused by Lhe producL ln Lhe absence of any proof
LhaL Lhe producL ln quesLlon was defecLlve. 1he defecL musL be presenL
upon Lhe dellvery or manufacLure of Lhe producL, or when Lhe producL
lefL Lhe seller's or manufacLurer's conLrol, or when Lhe producL was sold
Lo Lhe purchaser, or Lhe producL musL have reached Lhe user or
consumer wlLhouL subsLanLlal change ln Lhe condlLlon lL was sold.

ln alleglng LhaL Lhere was a vlolaLlon of warranLy agalnsL hldden defecLs,
Lhe spouses assumed Lhe burden of proof. Powever, Lhls Lhey falled Lo
overcome. under Lhe law, Lhe defecL musL exlsL aL Lhe Llme Lhe sale was
made and aL Lhe Llme Lhe producL lefL Lhe hands of Lhe seller, whlch Lhe
spouses falled Lo prove. 1he feeds were belaLedly LesLed-3 monLhs
afLer Lhe deaLh of Lhe brollers and hogs. 1hls means LhaL LhaL Llme, Lhey
may have already been conLamlnaLed. 1hey falled Lo prove LhaL Lhe
feeds dellvered Lo be LesLed were Lhe same feeds LhaL allegedly
polsoned Lhe anlmals.

Doctr|ne:

3. kemed|es for the 8uyer (Art|c|e 1S67)
1he buyer may elLher:
o WlLhdraw (acclon redhlblLorla), or
o uemand a reducLlon of Lhe prlce (acLlon quanLl mlnorls)
uamages ln elLher case.
1he cholce of remedles ls avallable only when Lhe Lhlng has noL
been losL.

4. Cb||gat|on of the Se||er (Art|c|e 1S68)
lf lL has been losL, obllgaLlons of seller depend on cause of loss,
knowledge of hldden defecL by seller, and wheLher Lhere was a
walver of Lhe warranLy.
o LosL Lhrough hldden faulLs
" lf seller was aware ! he shall bear Lhe loss, and
reLurn Lhe prlce and expenses of Lhe conLracL,
wlLh damages.
" lf seller was noL aware ! only obllged only Lo
reLurn Lhe prlce and lnLeresL Lhereon, and
relmburse Lhe expenses of conLracL, buL no
damages.
o lf losL Lhrough forLulLous evenL or Lhrough faulL of buyer
" lf seller was noL aware l.e. ln good falLh !
buyer may demand Lhe prlce he pald, less value
of Lhe Lhlng when lL was losL.
" lf seller ln bad falLh ! he shall pay damages Lo
Lhe buyer,

S. When 1here |s Wa|ver of Warranty (Art|c|e 1S66)
lf seller noL aware ! loss wlll noL make seller llable
lf seller was ln bad falLh ! seller sLlll llable on Lhe warranLy
1he sLlpulaLlon ln a lease wlLh opLlon Lo purchase (LreaLed as a
sale of movable on lnsLallmenLs) LhaL Lhe buyer-lessee
absoluLely releases Lhe lessor from any llablllLy whaLsoever as
Lo any and all maLLers ln relaLlon Lo warranLy ln accordance wlLh
Lhe provlslons herelnafLer sLlpulaLed," was held as an express
walver of warranLy agalnsL hldden defecL ln favor of Lhe seller-
lessor whlch absolved Lhe [seller-lessor] from any llablllLy
arlslng from any defecL or deflclency of Lhe machlnery Lhey
!"#$! &$'($)$& *+,-./+,-01 "2234 &"3 5"6#6 !"72("86


762$! 93 &":;$##$ "77$ 8<2($&&$= *<5>"2$>? @"3 +-A +,-01
boughL(Y CXK0KG'$1+ )%$NK+ )"%.( '( )"*%+ ", -..$/01@ 8DE 5)!-
8EE 789E9:(

6. App||cab|||ty to Iud|c|a| Sa|es (Art|c|e 1S70)
AlLhough Lhere may be hldden defecLs, Lhe debLor may noL have
been ln bad falLh especlally lf Lhe properLy was noL hls own buL
Lhe guaranLor's. As such, Lhe [udgmenL-debLor cannoL be held
llable for damages for Lhe hldden defecLs.

I. kedh|b|tory Defects of An|ma|s (Art|c|e 1S76)
1. Sa|e of 1eam (Art|c|e 1S72 - 1S73)

2. Cther ku|es on Sa|e of An|ma|s (Art|c|e 1S74 - 1S7S, 1S77 -
1S78)

3. Cb||gat|on Cf 8uyer 1o keturn (Art|c|e 1679)

4. kemed|es of the 8uyer (Art|c|e 1S80)

G. Warranty as to I|tness or ua||ty of Goods (Art|c|e 1S62)
1. kequ|s|tes for 8reach of Warranty to App|y
ln order Lo enforce Lhe lmplled warranLy LhaL Lhe goods are
reasonably flL and sulLable Lo be used for Lhe purpose whlch
boLh parLles conLemplaLed, Lhe followlng musL be esLabllshed:
(a) LhaL Lhe buyer susLalned ln[ury because of Lhe producL, (b)
LhaL Lhe ln[ury occurred because Lhe producL was defecLlve or
unreasonably unsafe, and flnally (c) Lhe defecL exlsLed when Lhe
producL lefL Lhe hands of Lhe peLlLloner. W*+%K#KC X$$N1 )"%.( '(
)"*%+ ", -..$/01, BB8 5)!- 63D 7244B:(
A manufacLurer or seller of a producL cannoL be held llable for
any damage allegedly caused by Lhe producL ln Lhe absence of
any proof LhaL Lhe producL ln quesLlon ls defecLlve, whlch was
presenL upon Lhe dellvery or manufacLure of Lhe producL, or
when Lhe producL lefL Lhe seller's or manufacLurer's conLrol, or
when Lhe producL was sold Lo Lhe purchaser, or Lhe producL
musL have reached Lhe user or consumer wlLhouL subsLanLlal
change ln Lhe condlLlon lL was sold. W*+%K#KC X$$N1 )"%.( '(
)"*%+ ", -..$/01, BB8 5)!- 63D 7244B:.

2. Measures of Damage In Case of 8reach of Warranty Cn ua||ty
ulfference beLween value of goods aL Lhe Llme of dellvery and
Lhe value Lhey would have had lf Lhe warranLy was complled
wlLh. (ArLlcle 1399)
o Applles ln absence of speclal clrcumsLances showlng
damage of a greaLer amounL

n. Sa|e of Goods by Samp|e (Art|c|e 1S6S)
A seller's descrlpLlon of Lhe goods whlch ls made parL of Lhe
basls of Lhe LransacLlon creaLes a warranLy LhaL Lhe goods wlll
conform Lo LhaL descrlpLlon. C=$GN"</ '( F/'KN@ BB8 5)!- 8D2
7244B:(
1here ls a sale by sample when a small quanLlLy ls exhlblLed by
Lhe seller as a falr speclmen of Lhe bulk, whlch ls noL presenL
and Lhere ls no opporLunlLy Lo lnspecL or examlne Lhe same. 1o
consLlLuLe a sale by sample, lL musL appear LhaL Lhe parLles
LreaLed Lhe sample as Lhe sLandard of quallLy and LhaL Lhey
conLracLed wlLh reference Lo Lhe sample wlLh Lhe undersLandlng
LhaL Lhe producL Lo be dellvered would correspondenL wlLh Lhe
!"#$! &$'($)$& *+,-./+,-01 "2234 &"3 5"6#6 !"72("86


762$! 93 &":;$##$ "77$ 8<2($&&$= *<5>"2$>? @"3 +-A +,-01
sample. ln a conLracL of sale by sample, Lhere ls an lmplled
warranLy LhaL Lhe goods shall be free from any defecL whlch ls
noL apparenL on reasonable examlnaLlon of Lhe sample and
whlch would render Lhe goods unmerchanLable. C=$GN"</ '(
F/'KN@ BB8 5)!- 8D2 7244B:(

V. Add|t|ona| Warrant|es for Consumer roducts (Art|c|es 68,
Consumer Act, k.A. 7394).

kLU8LIC AC1 NC. 7394
Art|c|e 68. -NNK+K"G/0 M%"'K1K"G1 "G Z/%%/G+K$1.
In add|t|on to the C|v|| Code prov|s|ons on sa|e w|th warrant|es, the
fo||ow|ng prov|s|ons sha|| govern the sa|e of consumer products w|th
warranty:

a) 1erms of express warranty. - Any se||er or manufacturer who
g|ves an express warranty sha||:
1) set forth the terms of warranty |n c|ear and read||y
understandab|e |anguage and c|ear|y |dent|fy h|mse|f
as the warrantor,
2) |dent|fy the party to whom the warranty |s extended,
3) state the products or parts covered,
4) state what the warrantor w||| do |n the event of a
defect, ma|funct|on of fa||ure to conform to the
wr|tten warranty and at whose expense,
S) state what the consumer must do to ava|| of the r|ghts
wh|ch accrue to the warranty, and
6) st|pu|ate the per|od w|th|n wh|ch, after not|ce of
defect, ma|funct|on or fa||ure to conform to the
warranty, the warrantor w||| perform any ob||gat|on
under the warranty.
b) Lxpress warranty - operat|ve from moment of sa|e. - A||
wr|tten warrant|es or guarantees |ssued by a manufacturer,
producer, or |mporter sha|| be operat|ve from the moment of
sa|e.
1) Sa|es keport. - A|| sa|es made by d|str|butors of
products covered by th|s Art|c|e sha|| be reported to
the manufacturer, producer, or |mporter of the
product so|d w|th|n th|rty (30) days from date of
purchase, un|ess otherw|se agreed upon. 1he report
sha|| conta|n, among others, the date of purchase,
mode| of the product bought, |ts ser|a| number, name
and address of the buyer. 1he report made |n
accordance w|th th|s prov|s|on sha|| be equ|va|ent to a
warranty reg|strat|on w|th the manufacturer,
producer, or |mporter. Such reg|strat|on |s suff|c|ent to
ho|d the manufacturer, producer, or |mporter ||ab|e, |n
appropr|ate cases, under |ts warranty.
2) Ia||ure to make or send report. - Ia||ure of the
d|str|butor to make the report or send them the form
requ|red by the manufacturer, producer, or |mporter
sha|| re||eve the |atter of |ts ||ab|||ty under the
warranty: rov|ded, however, 1hat the d|str|butor who
fa||ed to comp|y w|th |ts ob||gat|on to send the sa|es
reports sha|| be persona||y ||ab|e under the warranty.
Ior th|s purpose, the manufacturer sha|| be ob||gated
to make good the warranty at the expense of the
d|str|butor.
!"#$! &$'($)$& *+,-./+,-01 "2234 &"3 5"6#6 !"72("86


762$! 93 &":;$##$ "77$ 8<2($&&$= *<5>"2$>? @"3 +-A +,-01
3) keta||. - 1he reta||er sha|| be subs|d|ar||y ||ab|e under
the warranty |n case of fa||ure of both the
manufacturer and d|str|butor to honor the warranty. In
such case, the reta||er sha|| shou|der the expenses and
costs necessary to honor the warranty. Noth|ng
there|n sha|| prevent the reta||er from proceed|ng
aga|nst the d|str|butor or manufacturer.
4) Lnforcement of warranty or guarantee. - 1he warranty
r|ghts can be enforced by presentment of a c|a|m. 1o
th|s end, the purchaser needs on|y to present to the
|mmed|ate se||er e|ther the warranty card of the
off|c|a| rece|pt a|ong w|th the product to be serv|ced or
returned to the |mmed|ate se||er. No other
documentary requ|rement sha|| be demanded from
the purchaser. If the |mmed|ate se||er |s the
manufacturer's factory or showroom, the warranty
sha|| |mmed|ate|y be honored. If the product was
purchased from a d|str|butor, the d|str|butor sha||
||kew|se |mmed|ate|y honor the warranty. In the case
of a reta||er other than the d|str|butor, the former sha||
take respons|b|||ty w|thout cost to the buyer of
present|ng the warranty c|a|m to the d|str|butor |n the
consumer's beha|f.
S) kecord of purchases. - D|str|butors and reta||ers
covered by th|s Art|c|e sha|| keep a record of a||
purchases covered by a warranty or guarantee for such
per|od of t|me correspond|ng to the ||fet|me of the
product's respect|ve warrant|es or guarantees.
6) Contrary st|pu|at|ons - nu|| and vo|d. - A|| covenants,
st|pu|at|ons or agreements contrary to the prov|s|ons
of th|s Art|c|e sha|| be w|thout |ega| effect.
c) Des|gnat|on of warrant|es. - A wr|tten warranty sha|| c|ear|y
and consp|cuous|y des|gnate such warranty as:
1) "Iu|| warranty" |f the wr|tten warranty meets the
m|n|mum requ|rements set forth |n paragraph (d), or
2) "L|m|ted warranty" |f the wr|tten warranty does not
meet such m|n|mum requ|rements.
d) M|n|mum standards for warrant|es. - Ior the warrantor of a
consumer product to meet the m|n|mum standards for
warranty, he sha||:
1) remedy such consumer product w|th|n a reasonab|e
t|me and w|thout charge |n case of a defect,
ma|funct|on or fa||ure to conform to such wr|tten
warranty,
2) perm|t the consumer to e|ect whether to ask for a
refund or rep|acement w|thout charge of such product
or part, as the case may be, where after reasonab|e
number of attempts to remedy the defect or
ma|funct|on, the product cont|nues to have the defect
or to ma|funct|on.
1he warrantor w||| not be requ|red to perform the
above dut|es |f he can show that the defect,
ma|funct|on or fa||ure to conform to a wr|tten
warranty was caused by damage due to unreasonab|e
use thereof.
e) Durat|on of warranty. - 1he se||er and the consumer may
st|pu|ate the per|od w|th|n wh|ch the express warranty sha||
be enforceab|e. If the |mp||ed warranty on merchantab|||ty
!"#$! &$'($)$& *+,-./+,-01 "2234 &"3 5"6#6 !"72("86


762$! 93 &":;$##$ "77$ 8<2($&&$= *<5>"2$>? @"3 +-A +,-01
accompan|es an express warranty, both w||| be of equa|
durat|on.
Any other |mp||ed warranty sha|| endure not |ess than s|xty
(60) days nor more than one (1) year fo||ow|ng the sa|e of new
consumer products.
f) 8reach of warrant|es. -
1) In case of breach of express warranty, the consumer
may e|ect to have the goods repa|red or |ts purchase
pr|ce refunded by the warrantor. In case the repa|r of
the product |n who|e or |n part |s e|ected, the warranty
work must be made to conform to the express
warranty w|th|n th|rty (30) days by e|ther the
warrantor or h|s representat|ve. 1he th|rty-day per|od,
however, may be extended by cond|t|ons wh|ch are
beyond the contro| of the warrantor or h|s
representat|ve. In case the refund of the purchase
pr|ce |s e|ected, the amount d|rect|y attr|butab|e to the
use of the consumer pr|or to the d|scovery of the non-
conform|ty sha|| be deducted.
2) In case of breach of |mp||ed warranty, the consumer
may reta|n |n the goods and recover damages, or re[ect
the goods, cance| and contract and recover from the
se||er so much of the purchase pr|ce as has been pa|d,
|nc|ud|ng damages.

8epubllc AcL no. 7394 ! Consumer AcL of Lhe hlllpplnes
Consumer roducLs, ArLlcle 4(q) ! cover goods whlch are
o rlmarlly for personal, famlly, household, or agrlculLural
purposes
o Whlch shall lnclude buL noL llmlLed Lo food, drugs,
cosmeLlcs, and devlces.
(ArLlcle 68) 1erms of express warranLy - Any seller or
manufacLurer who glves an express warranLy shall:
1. SeL forLh Lhe Lerms of warranLy ln clear and readlly
undersLandable language and clearly ldenLlfy hlmself as
warranLor,
2. ldenLlfy Lhe parLy Lo whom Lhe warranLy ls exLended,
3. SLaLe Lhe producLs or parLs covered,
4. SLaLe whaL Lhe warranLor wlll do ln Lhe evenL of a defecL,
malfuncLlon of fallure Lo conform Lo Lhe wrlLLen warranLy and aL
whose expense,
3. SLaLe whaL Lhe consumer musL do Lo avall of Lhe rlghLs whlch
accrue Lo Lhe warranLy, and
6. SLlpulaLe Lhe perlod wlLhln whlch, afLer noLlce of defecL,
malfuncLlon or fallure Lo conform Lo Lhe warranLy, Lhe
warranLor wlll perform any obllgaLlon under Lhe warranLy.

A. Subs|d|ary L|ab|||ty Cf keta||er ! Art|c|e 68(b)(3)
1he reLaller shall be subsldlarlly llable under Lhe warranLy ln
case of fallure of boLh Lhe manufacLurer and dlsLrlbuLor Lo
honor Lhe warranLy.
o ln such case, Lhe reLaller shall shoulder Lhe expenses
and cosLs necessary Lo honor Lhe warranLy.
noLhlng Lhereln shall prevenL Lhe reLaller from proceedlng
agalnsL Lhe dlsLrlbuLor or manufacLurer.

8. Lnforcement Cf Warranty ! Art|c|e 68(b)(4)
!"#$! &$'($)$& *+,-./+,-01 "2234 &"3 5"6#6 !"72("86


762$! 93 &":;$##$ "77$ 8<2($&&$= *<5>"2$>? @"3 +-A +,-01
WarranLy rlghLs may be enforced by presenLmenL Lo Lhe
lmmedlaLe seller elLher Lhe warranLy card or Lhe offlclal recelpL
along wlLh Lhe producL Lo be servlced or reLurned Lo Lhe
lmmedlaLe seller.
no oLher documenLary requlremenL shall be demanded from
Lhe purchaser.

C. Durat|on Cf Warranty ! Art|c|e 68(e) and (f)
A perlod may be sLlpulaLed for when Lhe warranLy may be
enforced.
8uL lf Lhe lmplled warranLy on merchanLablllLy accompanles an
express warranLy, boLh wlll be of equal duraLlon.
Any oLher lmplled warranLy shall endure noL less Lhan 60 days
nor more Lhan 1 year followlng Lhe sale of new consumer
producLs.

D. 8reach Cf Warrant|es ! Art|c|e 68(g)
1. In Case Cf 8reach Cf Lxpress Warranty
1he consumer may elecL Lo have Lhe goods repalred or lLs
purchase prlce refunded.
ln case of repalr ! Lhe warranLy work musL be made Lo
conform Lo Lhe express warranLy wlLhln 30 days.
o 1he 30-day perlod may be exLended by condlLlons
whlch are beyond Lhe conLrol of Lhe warranLor.
ln case of refund ! Lhe amounL dlrecLly aLLrlbuLable Lo Lhe use
of Lhe consumer prlor Lo Lhe dlscovery of Lhe non-conformlLy
shall be deducLed.

2. In Case Cf 8reach Cf Imp||ed Warranty
1he consumer may:
o 8eLaln Lhe goods and recover damages C8
o 8e[ecL Lhe goods, cancel Lhe conLracL and recover from
Lhe seller so much of Lhe purchase prlces as has been
pald, lncluded damages.

L. Contrary St|pu|at|ons
All conLrary sLlpulaLlons are vold.

VI. Lffects and rescr|pt|on of Warrant|es (Art|c|e 1S71)
A breach ln Lhe warranLles of Lhe seller enLlLles Lhe buyer Lo a
proporLlonaLe reducLlon of Lhe purchase prlce. MW[ '( =$I/
M%K#$ !$/0+T /GN J"0NKGI )"%.(@ 3AD 5)!- A66 7244E:(
1he prescrlpLlve perlod for lnsLlLuLlng acLlons based on a breach
of express warranLy ls LhaL speclfled ln Lhe conLracL, and ln Lhe
absence of such perlod, Lhe general rule on resclsslon of
conLracL, whlch ls four years, whlle for acLlons based on breach
of lmplled warranLy, Lhe prescrlpLlve perlod ls slx monLhs from
Lhe daLe of Lhe dellvery of Lhe Lhlng sold. -GI '( )"*%+ ",
-..$/01@ 3AD 5)!- 36 7244E:(

VII. Lffects of Wa|vers
!"#$! &$'($)$& *+,-./+,-01 "2234 &"3 5"6#6 !"72("86


762$! 93 &":;$##$ "77$ 8<2($&&$= *<5>"2$>? @"3 +-A +,-01
1he phrase as ls, where ls" basls perLalns solely Lo Lhe physlcal
condlLlon of Lhe Lhlng sold, noL Lo lLs legal slLuaLlon. ln Lhe case
aL bar, Lhe uS Lax llablllLles consLlLuLe a poLenLlal llen whlch
applles Lo Lhe sub[ecL's maLLer's legal slLuaLlon, noL Lo lLs
physlcal aspecL. 1hus, Lhe buyer has no obllgaLlon Lo shoulder
Lhe same. CWF) '( =/N%KI/0 Z/G J*K ;KG$1 )"%.(@ B82 5)!-
6D3 72446:(

VIII. 8uyer's Cpt|ons |n Case of 8reach of Warranty (Art|c|e 1S99)

Art|c|e 1S99.
Where there |s a breach of warranty by the se||er, the buyer may, at
h|s e|ect|on:

(1) Accept or keep the goods and set up aga|nst the se||er, the breach
of warranty by way of recoupment |n d|m|nut|on or ext|nct|on of the
pr|ce,

(2) Accept or keep the goods and ma|nta|n an act|on aga|nst the se||er
for damages for the breach of warranty,

(3) kefuse to accept the goods, and ma|nta|n an act|on aga|nst the
se||er for damages for the breach of warranty,

(4) kesc|nd the contract of sa|e and refuse to rece|ve the goods or |f
the goods have a|ready been rece|ved, return them or offer to return
them to the se||er and recover the pr|ce or any part thereof wh|ch has
been pa|d.

When the buyer has c|a|med and been granted a remedy |n anyone of
these ways, no other remedy can thereafter be granted, w|thout
pre[ud|ce to the prov|s|ons of the second paragraph of Art|c|e 1191.

Where the goods have been de||vered to the buyer, he cannot resc|nd
the sa|e |f he knew of the breach of warranty when he accepted the
goods w|thout protest, or |f he fa||s to not|fy the se||er w|th|n a
reasonab|e t|me of the e|ect|on to resc|nd, or |f he fa||s to return or to
offer to return the goods to the se||er |n substant|a||y as good
cond|t|on as they were |n at the t|me the ownersh|p was transferred to
the buyer. 8ut |f deter|orat|on or |n[ury of the goods |s due to the
breach or warranty, such deter|orat|on or |n[ury sha|| not prevent the
buyer from return|ng or offer|ng to return the goods to the se||er and
resc|nd|ng the sa|e.

Where the buyer |s ent|t|ed to resc|nd the sa|e and e|ects to do so, he
sha|| cease to be ||ab|e for the pr|ce upon return|ng or offer|ng to
return the goods. If the pr|ce or any part thereof has a|ready been
pa|d, the se||er sha|| be ||ab|e to repay so much thereof as has been
pa|d, concurrent|y w|th the return of the goods, or |mmed|ate|y after
an offer to return the goods |n exchange for repayment of the pr|ce.

Where the buyer |s ent|t|ed to resc|nd the sa|e and e|ects to do so, |f
the se||er refuses to accept an offer of the buyer to return the goods,
the buyer sha|| thereafter be deemed to ho|d the goods as ba||ee for
the se||er, but sub[ect to a ||en to secure payment of any port|on of the
pr|ce wh|ch has been pa|d, and w|th the remed|es for the enforcement
of such ||en a||owed to an unpa|d se||er by Art|c|e 1S26.(S)

!"#$! &$'($)$& *+,-./+,-01 "2234 &"3 5"6#6 !"72("86


762$! 93 &":;$##$ "77$ 8<2($&&$= *<5>"2$>? @"3 +-A +,-01
In the case of breach of warranty of qua||ty, such |oss, |n the absence
of spec|a| c|rcumstances show|ng prox|mate damage of a greater
amount, |s the d|fference between the va|ue of the goods at the t|me
of de||very to the buyer and the va|ue they wou|d have had |f they had
answered to the warranty. (n)

1he buyer may elecL elLher of Lhe remedles ln ArLlcle 1399(1)
o 1hese remedles are alLernaLlve. ArLlcle 1399(2)
1he remedy agalnsL vlolaLlon of warranLy agalnsL hldden defecLs
ls elLher Lo wlLhdraw from Lhe conLracL (/773#4 &%2H363+#&3/) or
Lo demand a proporLlonaLe reducLlon of Lhe prlce (/773#4 I*/4+3
$34#&31), wlLh damages ln elLher case. W*+%K#KC X$$N1 )"%.( '(
)"*%+ ", -..$/01, BB8 5)!- 63D 7244B:(