WARRANTIES

statement or representation made by the seller contemporaneously and as a part

of the contract of sale, having reference tot eh character, quality, or title of the goods,
and by which he promises or undertakes to insure that certain facts are or shall be as he
then represents .
 KINDS:
Express
Implied
Implied Warranties (Article 1547)
- In a contract of sale, unless a contrary intention appears, there is:
GENERAL RULE
 (1) An implied warranty on the part of the seller that he has a right to sell
the thing at the time when the ownership is to pass, and that the buyer
shall from that time have and enjoy the legal and peaceful possession of
the thing;
 (2) An implied warranty that the thing shall be free from any hidden
faults or defects, or any charge or encumbrance not declared or known to
the buyer.
EXCEPTION
This Article shall not, however, be held to render liable a sheriff, auctioneer,
mortgagee, pledgee, or other person professing to sell by virtue of authority in
fact or law, for the sale of a thing in which a third person has a legal or
equitable interest. (n)
Implied Warranties
 Deemed included in all contracts of sale whether parties are actually aware or not,
whether they were intended or not; by operation of law
 An implied warranty is one that arises from the nature of the transaction, and the
inherent understanding by the buyer, rather than from the express representations
of the seller.
 not applicable to sheriff, auctioneer, mortgagee, pledgee
1. Warranty that seller has a right to sell
refers to consummation stage since in consummation stage, it is where
ownership is transferred by tradition
also known as the warranty of title, which implies that the seller of goods
has the right to sell them
(e.g., they are not stolen, or patent infringements, or already sold to
someone else).
2. 2. Warranty against any hidden faults or defects, or any charge or encumbrance
not declared
- warranty against encumbrances (non- apparent)
 REQUISITES
 a. immovable sold is encumbered with non–apparent burden or servitude not
mentioned in the agreement
  b. nature of non–apparent servitude or burden is such that it must be presumed
that the buyer would not have acquired it had he been aware thereof
 c. when breach of warranty exist: buyer may ask for rescission of indemnity
 d. warranty not applicable when non-apparent burden or servitude is recorded in
the Registry of Property – unless there is express warranty that the thing is free
from all burdens and encumbrances

- warranty against hidden defects

GENERAL RULE
 SELLER does not warrant patent defect;
 caveat emptor
Except when hidden
1. subject matter may be movable or immovable
2. nature of hidden defect is such that it should render the subject matter unfit for
the use of which it was intended or should diminish its fitness
3. had the buyer been aware, he would not have acquired it or would have given a
lower price
Subsection 2
Warranties Against Hidden Defects of or Encumbrances Upon the Thing
Sold (Art. 1578-1581)
For the sale of animals with Redhibitory faults/ defects the law provides for
the following :
 Art. 1578. If the animal should die within three days after its purchase,
the vendor shall be liable if the disease which cause the death existed at
the time of the contract. (1497a)
 Art. 1579. If the sale be rescinded, the animal shall be returned in the
condition in which it was sold and delivered, the vendee being
answerable for any injury due to his negligence, and not arising from the
redhibitory fault or defect. (1498)
 Art. 1580. In the sale of animals with redhibitory defects, the vendee
shall also enjoy the right mentioned in article 1567; but he must make
use thereof within the same period which has been fixed for the exercise
of the redhibitory action. (1499)
 Art. 1581. The form of sale of large cattle shall be governed by special
laws
( ie: PD 533 - THE ANTI-CATTLE RUSTLING LAW OF 1974 )
Warranties for sale of animals with Redhibitory faults/ defects
a) even in the case of professional inspection but hidden defect is of such nature that
expert knowledge is not sufficient to discover it - defect shall be considered as
REDHIBITORY
b) if vet fails to discover through ignorance or bad faith he is liable for damages
c) sale of animals on teams (2 or more)
 when only one is defective, only one is redhibited-exception: when it appears buyer
would not have purchased the team w/o the defective one then apply to sale of other
things
d) animals at fair or public auction -no warranty against hidden defects
e) sale of animals with contagious disease is void
f) sale of unfit animals -void if use / service for which they are acquired has been
stated in the contract and they are found to be unfit therefore, prescription of
action:40 days from date of delivery to buyer
-if sale is rescinded, animals to be returned in same condition when they were
acquired; buyer shall answer for injury / loss due to his fault
buyer may elect between withdrawing from sale and demanding proportionate
reduction of price with damages in either case