Warranties

Any representation made by the seller of the thing

with respect to its character, quality or ownership
by which he induces buyer to purchase the same
relying on said representation
Kinds of Warranty
1. Express Warranty is any affirmation of
fact or any promise by the seller relating to
the thing, the natural tendency of which is
to induce the buyer to purchase the thing.
 2. Implied Warranty
Warranty that seller has right to sell
Warranty against eviction
Waiver of Liability
Consciente- voluntary made by vendee WITHOUT
knowledge and assumption of risks of eviction
Intencionada- made by vendee with knowledge of
risk of eviction and assumption of consequences
Warranty against non-apparent burden or
servitudes
 Warranty against hidden defects
Doctrine of Caveat Venditor seller is liable even
though he is not aware of hidden defect

Except: when there is stipulation to contrary

Warranty against Redhibitors defects on animals

Warranties in sale of goods/ Warranties of

Quality
Buyers option in case of Breach
of Warranty
1. Accept the goods and set up sellers
breach to reduce or extinguish price
2. Accept the goods and maintain an action
for damages for breach of warranty
3. Refuse to accept the goods and maintain
an action for damages for breach of
warranty
4. Rescind the contract of sale by returning
or offering the return of the goods and
recover the price
BREACH OF CONTRACT
SALE OF MOVABLE
1) ORDINARY REMEDIES
a) Movables in General- automatic rescission (only
if goods not yet delivered) vendor can rescind
the contract
b) Non-payment of price by the buyer
i. Ownership transferred to buyer
ii. No transfer of ownership to buyer
iii. When price payable on certain day
2) SPECIAL REMEDIES by Unpaid Seller
a) Possessory Lien
b) Stoppage in Transitu
c) Special Right to Resell Goods
d) Special Right to Rescind
Recto Law
The vendor of personal property payable in
installment may exercise any of the ff. remedies:

a) Exact fulfillment of Obligation upon vendees

failure to pay
b) Cancel or Rescind the sale
c) Foreclosure if constituted chattel mortgage

Note: installment means 2 or more unpaid

installments
Remedies of seller in case of Immovables

1) When there is anticipatory breach- seller

may rescind if following concur:
a) There is delivery of immovable property
b) Vendee has not yet paid the price
c) Vendor has reasonable ground to fear the:
o Loss of property and loss of price

2) When there is failure on part of the buyer

to pay the price
Maceda Law
An expression of public policy to protect
buyers of real estate on installments against
onerous and oppressive condition.

REQUISITES
a) Transactions or contracts involving sale or
financing of real estate on installment
payments including residential
condominiums
b) Buyer default in succeeding installments
NOTE: installments involve at least 2
installments
 Rights of the Buyer
1) If the buyer has paid ATLEAST 2 YEARS OF
INSTALLMENTS
Buyer must pay without additional interest, the
unpaid installments due within the total grace
period earned by him
1 month grace period for every 1 year of
installment payments made
Cancellation Notarial notice of rescission and
refund of cash surrender
Cash Surrender- seller shall refund the buyer 50% of total
payments made but. There should be aditional 5% every
year but not more than 90%

Buyer shall have the right to sell his rights or assign

the same to another or reinstate the contract
Buyer shall have the right to pay in advance
2) If buyer has paid LESS THAN 2 YEARS of
INSTALLMENT-
grace period of not less than 60 days from date
of installments shall become due
If buyer fails to pay, the seller may cancel the
contract after 30 days from receipt of buyer of
notarial notice of cancellation
Buyer shall have the right to sell his rights or
assign the same to another or reinstate the
contract
Buyer shall have the right to pay in advance
Remedies of the Buyer
1) In case of Immovables
a) Suspension of Payment
b) Right to Grace period stipulated
2) In case of Movables
a) Action for specific Performance
b) In case breach of warranty:
Recoupment
Accept and maintain Action for Damage
Refuse to accept and maintain Action for Damage
Rescission
 Theory of Recoupment The sellers
damages are cut down to an amount which
will compensate him for the value of what
he has given
 OKAY SIYA?
If yes.. MARAMING SALAMAT!!