Warranty on Hidden Defects

Articles 1561, 1566, 1567, 1568, 1569 and 1570

When can the seller be held liable for warranty against the hidden defects?
General Rule The thing sold may or should render the subject matter unfit for the use for which it is intended (Art. 1561) Should they diminish its fitness for such use to such extent that, had the vendee been aware thereof, he would not have acquired it or would have given a lower price for it. (Art. 1561)

Exemptions If there are patent defects or those which may be visible (Art. 1561) Those which are not visible if the vendee is an expert who, by reason of his trade or profession, should have known them (Art. 1561) Stipulation between parties; provided, the vendor was not aware of the hidden faults or defects in the thing sold. Case: Investment & Development Inc. vs. Court of Appeals 162 SCRA 636 (1988)

What are the requisites for breach of warranty?

Defect must be hidden; Defect must exist at the time the sale was made; Defect must ordinarily have been excluded from the contract; Defect must be important (render the thing unfit or considerably decreases fitness); and Action must be instituted within the statute of limitations Case: Nutrimix Feeds Corp. vs. Court of Appeals

What are the remedies of the vendee for breach of warranty?

Accion redhibitoria with damages withdrawal from the contract Accion quanti minoris with damages demand of proportionate reduction of the price Article 1599

What are the obligations of the vendor for breach of warranty?

Articles 1568 & 1569

Applicability to Judicial Sales

General Rule: The warranty against hidden defects shall be applicable to judicial sales Exemption: Judgment debtor shall not be liable for damages

Warranty as to Fitness or Quality

Articles 1562, 1563, 1564 and 1565

When can there be an implied warranty on the sale of goods?

General Rule: Article 1562 (1) Article 1562 (2) Article 1564 Article 1565 Exception to the General Rule: Article 1563 Exception to the Exception: If there is stipulation to the contrary (Art. 1563)

What are the remedies of a buyer in case of breach of any warranty?

Article 1599

Prescriptive Period Six (6) months (Art. 1571)

Warranty as to the Sale of Animals

Articles 1572, 1573, 1574, 1575, 1576, 1578, 1579, 1580, and 1581

Redhibitory Defects (Art. 1576)

A hidden defect of an animal of such a nature that

expert knowledge is not sufficient to discover it, even when a professional inspection has been made.
But the veterinarian, who has failed to discover or

disclose such defect through ignorance or bad faith, shall be liable for damages.

Sale of Two or More Animals Together (Art. 1572-1573)

GR : A defect in one should not affect the sale of

the others. This is true whether the price was a lump sum or separate rate for each animal.
Exception: In a sale of team of animals

Other rules on sales of animals

Art. 1574

GR: No warranty against hidden defects of animals that are sold at fairs or at public auctions or those live stock that are sold as condemned. Exception: The fact that the livestock is condemned must be communicated to the buyer, otherwise, the seller is still liable.
Art. 1575 - Two (2) kinds of void sales with respect to

animals: 1) Sale of animals suffering from contagious diseases;

Prescriptive period (Art. 15771578)

Redhibitory action - within forty (40) days from the

date of their delivery to the buyer.

Should the animal die within three (3) days after

its purchase, the vendor shall be liable if the disease which causes the death existed at the time of the contract.
Withdrawing from the contract - six (6) months

from the delivery of the thing sold.

Obligation of the Buyer to Return (Art. 1579)

The animal shall be returned in the condition in

which it was sold and delivered if the sale be rescinded.

The buyer is shall be liable for any injury due to

his negligence.

Remedies of Buyer of Animals with Redhibitory Defects (Art. 1580)

A buyer of animals with redhibitory defects has two (2) remedies (with damages in either case):
Withdrawing from the contract or rescission; and To demand a proportionate reduction of the price.

Sale of Large Cattle (Art. 1581)

In cases of sale of large cattle, special laws

govern the form of such sale.