REVIEWER IN SALES

Art. 1525. Art. 1532

Art. 1533
Art. 1526.

Art. 1534
Art. 1527

Art. 1535

Art. 1528

Art. 1536

Art. 1529

Art. 1537

Art. 1530

Art. 1538

Art. 1531
Art 1539. Sale of Real Estate by unit Chapter III: Conditions and Warranties
A. There is deficiency:
1. If the deficiency is less than 1/10th : Art 1545.
GR: Proportional reduction of the price
EXN: If the buyer would have not purchase the lot if he have known that Condition – future and uncertain event which may or may not happen
it is smaller in area
2. If the deficiency is more than 1/10th : Rescission
Rescission of the contract Art. 1546.

Art 1540. Warranties – declaration or guarantee by the seller

B. There is an excess: 1. Express –
a. Accept what is agreed and reject the rest; or 2. Implied –
b. Accept all, and pay at the contract rate
Art. 1547. Implied Warranties:
Art 1541. Judicial Sales 1. Warranty against eviction – warranty that the seller has the right to sell
the thing at the time when ownership is to pass and that the buyer will
Art 1542. Sale of Real Estate for Lumpsum have and enjoy legal and peaceful possession of the thing.
GR: No increase/ decrease in the price regardless if the area is more/ less than
what is agreed upon. What is important is the delivery of all the land included in 2. Warranty against hidden defects – warranty that the thing is free from
the boundaries. Greater/ lesser area is immaterial. any hidden faults, charges or encumbrance not known to the buyer
EXN: If the deficiency is very great as gross mistake may be inferred.
Persons not liable for Warranty: SAMPO
Art. 1543. Prescription – 6 months from delivery 1. Sheriff
2. Auctioneer
Art. 1544. Double Sale 3. Mortgagee
RULES: 4. Pledgee
A. Movable - 1st possessor in GF 5. Other person professing to sell by virtue of authority in fact/ law

B. Immovable
1. 1st Registrant in GF – actual registration Art 1548. Warranty against eviction
2. 1st Possessor in GF – actual or constructive Eviction – takes place when by final judgment based on a right prior to sale or
3. Oldest title by act imputable to the vendor, the vendee is deprived of the whole or part of the
Reason: No person can sell what he does not own. thing purchased.
Note: Applies also to double donation but does not apply when the property is 1st
donated then sold.
Art 1549. Vendee need not appeal B. w/o stipulation exempting the vendor or no stipulation was agreed upon:
1. Good Faith – VICE
c. Value of the thing at the time of eviction
Art. 1550. Adverse possession d. Income/ fruits
e. Costs of suit
Art. 1551. Non-payment of taxes – not made known to the vendee f. Expenses of the contract

Art 1552. Eviction in case of judicial sales 2. Bad Faith – VICED

f. Value of the thing at the time of eviction
Art. 1553. Stipulation waiving liability for eviction g. Income/ fruits
1. Seller is in GF – Valid h. Costs of suit
2. Seller is in BF - Void i. Expenses of the contract
j. Damages and interest
Art 1554. Waiver by the buyer:
1. Waiver consciente – waiver w/o knowledge of the risk Art. 1556. Partial Eviction – if the vendee losses a part of the thing sold which is
- Return the value of the thing at the time of eviction of such importance in relation to the whole, he may demand:
- Reason: solution indebiti 1. Rescission
2. Enforcement of the vendor’s liability for eviction
2. Waiver intencionada - waiver w/ knowledge of the risk – must be clearly
proved. Art. 1557. Necessity of Final Judgment – warranty can only be enforced after
- Nothing is to be returned final judgment
- The buyer assumes consequences
Art. 1558. Necessity of summoning the seller – to give the seller the opportunity
Art. 1555. Vendor’s liability in case of eviction to prepare for the suit
A. w/ stipulation exempting the vendor:
1. Good Faith : Art. 1559. Buyer- Defendant, Seller – Co-defendant
a. Waiver consciente - Value
b. Waiver intencionada - nothing Art. 1560. Rules on Easement & Servitude:
1. w/in 1 year from the execution of the sale:
2. Bad Faith – VICED a. Rescission, or
a. Value of the thing at the time of eviction b. Damages
b. Income/ fruits 2. Beyond 1 year – damages
c. Costs of suit
d. Expenses of the contract
e. Damages and interest
Subsection 2: Warranty against Hidden Defects/ Encumbrance Art. 1566. Responsibility for hidden defects:
GR: The seller is still liable even if he is not aware.
Art. 1561. Requisites to recover because of hidden defects: Reason: Reparation – he has to repair the damage, not a punishment.
1. The defect must be hidden (patent)
2. Exist at the time of sale; EXN: if there is stipulation exempting the seller and he is not aware of the
3. The defect is excluded from the contract defect.
4. The defect id so important that it renders the thing unfit
5. The action must be instituted w/in the statute of limitations Art. 1567. Remedies of the Buyer:
1. Accion redhibitoria – rescission
Kinds of defects: 2. Accion Quanti Minoris – proportionate reduction of the price
1. Redhibitory - even professional inspection cannot discover it
2. Hidden – not visible but can be seen after inspection Art. 1568. Loss due to the Hidden Defects
3. Patent – obvious, visible 1. Cause of loss is the defect:
a. The seller is aware of the defect:
Art. 1562. Warranties included: 1. Return the price
1. Implied warranty of fitness for a particular purpose 2. Refund the expenses of the contract
Requisites: 3. Damages
a. The buyer told the buyer of the purpose for which the goods are
purchased; b. The seller is not aware of the defect:
b. The buyer relied on the seller’s skill/ judgment 1. Return the price
2. Refund the expenses of the contract
2. Implied warranty of merchantable quality– the goods are fit for general 3. Interest
purpose of the thing, not necessarily for the purpose of the buyer Art. 1569.
2. Cause of loss is fortuitous events/ fault of the vendee
3. Implied warranty of merchantability – warranty that the goods are free a. The seller is aware of the defect:
from any defect that will render it unmerchantable 1. Return the price paid less value of the thing at the time of lost;
2. damages

Art. 1563. Sale under Patent/ Trade name – no waranty b. The seller is not aware of the defect:
1. Return the price paid less value of the thing at the time of lost;
Art. 1564. Usage of Trade – the implied warranty as to the quality or fitness may
be inferred from the usage of trade.
Art. 1570. Applicability to judicial sales
Art. 1565. Sale by Sample – Implied warranty of merchantability
Art. 1571. Prescriptive period= 6 months from the delivery of the thing sold Art. 1579. Sale of animal is rescinded
The buyer must sue the seller, not only notify him.

Art. 1572. Sale of 2 or more animals together Art. 1580. Remedies of buyer w/ reedhibitory defects:
GR: The defect of one shall give rise only to redhibition. The buyer has the 1. Accion redhibitoria - w/drawal or rescission
following remedies: 2. Accion Quanti Minoris – proportional reduction
1. Accion redhibitoria
2. Accion Quanti Minoris
Art. 1581. Sale of large cattle
EXN: If the buyer would have not bought the animals if he have known the
defect, the defect of one will give rise to redhibition of ALL.

Art. 1573. Applicability to sale of other things

Art. 1574. No warranty against hidden defects if :

1. The animals are bought at fairs or auctions, or
2. Livestock sold as condemned

Art. 1575. Void sale of animals

1. Sale of animals w/ contagious disease
2. The animals are unfit for the purpose to which they were purchased w/c
is stated in the contract

Art. 1576. Redhibitory defect

Art. 1577. The redhibitory action based on fraud or defect of the animals must
be filed w/in 40 days from delivery to the buyer.

Art. 1578. The seller is liable for the death of the animal if:
1. The disease existed at the time of sale;
2. The disease is the cause of death
3. The animal died w/in 3days from purchase