Notes On Warranties and Obligations of Parties To A Sale

NOTES ON WARRANTIES AND OBLIGATIONS OF PARTIES TO A SALE
Obligations of the Seller  If the defect is visible, apply

1. Warrant the thing subject of the only caveat emptor or buyer
sale beware
2. Deliver and transfer ownership Instances when the warranty
of the thing against hidden defects is not
3. Preserve the thing applicable:
4. Shoulder expenses 1. Sale of secondhand things
2. Sale in “as is, where is” basis
Kinds of Warranties (buy at your own risk)
1. Express Warranties
2. Implied Warranties Warranty against Eviction
 Warranty that the buyer, from
Express Warranties the time of transfer, shall enjoy
 Representations or assurances legal and peaceful possession
of the seller of the thing
 A promise by the seller relating  Usually applicable in sale of
to the thing if the natural lands
tendency of such promise is to  Should be by virtue of a final
induce the buyer to purchase judgment or court judgment
the same
Warranty on Fitness
Usual Exaggerations in Trade and  Warranty that the thing bought
Business is fit for the specific purpose for
 “Sales Talk” which it was bought
 Not considered as express
warranties Warranty on Merchantability
 Not considered as fraudulent if  Warranty that the thing is fit for
the other party has the chance the general purpose for which it
to verify was bought
 Considered as a warranty if the  Imitation or fake, not
person you are dealing with is merchantable
an expert and the other party
relies on his representation Delivery of Goods of Lesser
Quantity
Implied Warranties  The buyer may reject delivery if
1. Warranty against Hidden the seller delivers to the buyer a
Defects quantity of goods less than he
2. Warranty against Eviction contracted to sell
3. Warranty on Fitness  If the buyer accepts or retains
4. Warranty on Merchantability the goods, knowing that the
seller is not going to perform the
Warranty against Hidden Defects contract in full, he must pay for
 Warranty that the thing shall be them at the contract price
free from hidden faults or  If the buyer has used the goods
defects delivered before he knows that
 The defect is not visible or the seller is not going to perform
observable his contract in full, the buyer
shall pay only the fair value of
the goods
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Delivery of Goods of Larger Lump Sum Sale

Quantity  In the sale of real property
 Where the seller delivers to the made for a lump sum, there
buyer a quantity of goods larger shall be no increase or
than he contracted to sell, the decrease of the price, although
buyer may accept the goods there be a greater or lesser
included in the contract and area than that stated in the
reject the rest contract
 If the buyer accepts the whole  The seller is bound to deliver
of the goods so delivered, he what is included within the
must pay for all the goods boundaries whether the same is
delivered at the contract rate more or less that what is stated
in the contract
Delivery of Real Property  If there is conflict between the
1. Sale Per Unit area actually covered by the
2. Lump Sum Sale boundaries and the estimated
area stated in the contract of
Sale Per Unit sale, the seller shall only deliver
 If the sale of real property when the excess or deficiency
should be made with a is reasonable
statement of its area, at the rate
of a certain price for a unit of Seller is not the owner of the thing
measure, the seller shall be sold
obliged to deliver to the buyer  Ownership is not transferred,
all that may have been stated in even there was already delivery
the contract if the buyer should of the goods
demand it  A person cannot transfer
 If the seller can deliver only less ownership over a thing which he
than the area that is included in does not own or if the owner of
the contract, the buyer may the thing did not grant the seller
choose between a proportional an authority to sell
reduction of the price or  For purchases made in a
cancellation of the contract if merchant’s store, or in fairs or
the lack in the area be not less markets, there is transfer of
than one-tenth of that stated in ownership even if the seller is
the contract not the owner or is not
 If there is a greater area or authorized to sell
number in a real property than
that stated in a contract, the Loss of the Object
buyer may accept the area  If the loss of the thing occurs
included in the contract and before perfection of the contract
reject the rest of sale, the seller bears the loss
 If the buyer accepts the whole  If the loss occurs after
area, he must pay for the same perfection of the contract of sale
at the contract rate but before delivery, seller bears
the loss
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 If the thing is already delivered  The seller is not yet paid by the
to the buyer, the buyer bears buyer
the loss  The seller may keep the thing
until he is paid the contract
Obligations of the Buyer price
1. To pay the price at the time and Stoppage in Transit
place agreed upon in the  The right to resume possession
contract of the goods at any time while
2. To accept the thing sold upon the goods are in transit, and he
deliver will then become entitled to the
same rights in regard to the
Payment of the Price goods as if he never parted with
 Any currency may be stipulated possession of such goods
 If no currency is stipulated,  The thing is already in transit
price should be paid in legal  The seller may stop delivery if
tender the buyer is insolvent
 If the amount delivered is
counterfeit, sale remains valid Resale
subject to the remedies of the  The goods under possessory
seller lien are of perishable nature
 The buyer has been in default in
Acceptance of the Thing the payment of price for an
 Right to inspect the thing unreasonable time
 Cash on Delivery, cannot  Notice to the buyer is not
inspect the thing necessary for the validity of a
 Refusal to accept the thing due resale
to valid grounds, the buyer is  If the proceeds collected from
not liable the resale is more than the
contract price between the
Remedies of Parties to a Sale original buyer and the seller, the
1. Specific Performance – to excess belongs to the seller
compel the other party to  If there is deficiency in the
comply with his obligation proceeds after the resale, the
2. Rescission or Cancellation – If a deficiency shall be borne by the
party is unable to perform his buyer who is not paying
obligation or has committed a
breach thereof
3. Damages – If a party wrongfully
neglects or refuses to perform
his obligation
Special Remedies of the Seller

1. Possessory Lien
2. Stoppage in Transit
3. Resale
Possessory Lien
 The seller is still in possession
of the thing
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Notes On Warranties and Obligations of Parties To A Sale

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NOTES ON WARRANTIES AND OBLIGATIONS OF PARTIES TO A SALE

Obligations of the Seller  If the defect is visible, apply

Delivery of Goods of Larger Lump Sum Sale

Special Remedies of the Seller

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