Implied Warranties: Kinds

Until when should this right be exercised:

1. Implied Warranty Against Eviction: Requisites
- There should be a final judgment
- Buyer must have been deprived of the thing because of the existence of
the right of a third person (due to the fault of the vendor)
- No valid waiver (waiver intencionada)
2. Against Hidden Defects
- defect not obvious to the naked eye
- existing at the time of the sale
3. Against Any Charge or Non-Apparent Encumbrance
Ex. Right of Way
4. Against Hidden Defects (Sale of Animals)
- redhibitory defect
- law provides 4 years from date of execution of the contract
- maximum period: 10 years
Equitable Mortagage (Art. 1602)
- secure fulfillment of an EXISTING obligation
“In case there is doubt, always consider that is merely an equitable
mortgage.”
LEGAL REDEMPTION
- There can be right of redemption even if there was no sale, as
long as the alienation was onerous in character.
- Redemptioners are subrogated under the same terms and
conditions of the sale
- Can only be compelled to pay the amount stated in the deed

RIGHTS & OBLIGATIONS OF THE VENDEE

1. Maceda Law (Realty Installment Buyer Act) 1. Co-owners
- There must be co-ownership at the time of the sale
REMEDIES OF THE UNPAID SELLER - Movable/Immovable
Art. 1526 - alienation must be in favor of a third person (not a co-owner)
1. Retain the goods
2. Stoppage in transitu 2. Owners of Adjacent Lots
3. Resale - one with the smallest land area
4. Rescind - if equal, the first one who manifest
- co-owner is preferred
Recto Law - has a right of pre-emption

MODES OF EXTINGUISHMENT
Art. 1600
1. Ordinary
2. Extraordinary (redemption)

Conventional Redemption
- There should be a contract entered into (Sale with Right to
Repurchase) Pacto de Retro
- As a rule, ownership shall pass upon delivery.
- Ownership is subject to a resolutory condition
- Resolutory because the ownership will revert back to the owner
 LEASE NOT YET ASKED:
Rights of Suppliers of Materials (contract of piece of work)
Memorize: When the contractor obliged himself to supply the work as well as
1640 the materials.
1649
1650 What if the contractor fails to pay the supplier? Is the principal
owner liable?
Nature: Art. 1643 (definition)
SUG. ANS:
Characteristics: 1. NO CAUSE OF ACTION. There is no privity of contract between the
Principal supplier and the principal owner.
Consensual 2. Contractor is not an agent of the owner. It is a contract for a piece
Essentially Onerous of work.
Bilateral 3. The principal owner can only be held liable when he still owes an
Commutative amount to the contractor (but only up to that amount).
Nominate
TERMINATION OF THE LEASE
Effect after death: Still has force and effect
- not ordinarily extinguished Death – does not extinguish the lease because it is not a purely
- not being purely personal, it may be extinguished, if there is a personal contract
stipulation
The total destruction of the object of the contract due to a fortuitous
event, extinguishes the contract.

SUBLEASE/ASSIGNMENT OF LEASE If the loss/destruction is partial, there is no extinguishment. But the

lessee has 2 options:
LESSEE can sublease the property without the consent of the - reduction of the rental
LESSOR, as long as not prohibited by the Lessor. - rescind the contract
- express prohibition in the contract
Uribe: Right to rescind to be consistent with 1191, the loss/desctruction
In assignment, the Lessee is prohibited unless there is a stipulation must be substantial. Kung konti lang naman, baka reduction lang ang
to the contrary. karapatan niya.

As long as there is a period left that would revert back the status of
the original lessee, THERE IS NO ASSIGNMENT, but merely a
sublease.
Ex. The contract of the sublease is one day short from the end of the
period of the original contract (there is no transfer/assignment, but
merely a sublease.)
Implied New Lease/Tacita Reconduccion
- period already expired
- despite expiration, the lessee continued possession at least 15
days
- no notice of the termination coming from any of the parties
Rights and Obligations under this Implied New Lease
 - period of the lease will not be the same; will depend on the
nature of the property lease: urban (1687) or rural (1682). Case:
Spouses Dela Cruz v. Concepcion
G.R. No. 172825
Oct. 11, 2012
AGENCY
OBLIGATIONS OF THE AGENT
- only on JURIDICAL ACTS (those which would create legal effects) Primary: To carry out the agency
- service/to do something
- in representation Principal died – as a rule, agency can no longer be carried out (art.
- preparatory contract 1919)
But the agent should continue with the agency, if there would be a
Nature of the Concept (check memaid) delay that would entail danger.

Characteristics as a Contract

Distinctions
Agency vs. Lease of Service

KINDS OF AGENCY

PRESUMED TO BE FOR COMPENSATION

1878. SPA
Lease for more than 1 year
- without SPA, unenforceable.

ESSENTIAL ELEMENTS (Rallos Case)

- consent of the parties
- object (execution of juridical act)
- agent should act within the scope of his authority
- agent should act in representation of the principal

Uribe: 3rd is not an essential element.

1869. Agency may be oral.

- no particular form for its validity, unless otherwise provided by law
(for enforceability).

1874. Authority to sell parcel of land not in writing, the sale is void.
1403. No authority, unenforceable.