H.A.M.
WARRANTY AGAINST It is a defect in the article sold against
which defect the seller is bound to
HIDDEN DEFECT warrant. The vice must constitute an
imperfection, a defect in its nature, of
Hidden defect (NCC, Art.1561) certain importance; and a minor defect
does not give rise to redhibition (De
One which is unknown or could not have Leon, 2005).
been known to the buyer (Diaz, 2006.)
Redhibitory defect on animals (NCC,
NOTE: Seller does not warrant patent Art. 1576)
defect.
If the hidden defect of animals, even in
Reason: caveat emptor (buyer beware). case a professional inspection has been
made, should be of such a nature that
Application expert knowledge is not sufficient to
discover it, the defect shall be
The seller shall be responsible for considered as redhibitory.
warranty against “hidden defect” only
when: Void sale of animal (NCC, Art. 1575)
1. The nature of the hidden defect is The sale is void if animal is:
such that it should render the
subject matter unfit for the use for 1. Suffering from contagious
which it is intended; or diseases;
2. Should diminish its fitness for
such use to such an extent that, 2. Unfit for the use or service for
had the buyer been aware which they were purchased as
thereof, he would not have indicated in the contract.
acquired it or would have given a
lower price for it. Remedies of the buyer in case of sale
of animals with redhibitory defects
Requisites to Recover (NCC, Art. 1580)
1. Defect must be hidden
2. Must exist at the time the sale The vendee may elect between:
was made
3. Must ordinarily have been 1. Withdrawing from the contract
excluded from the contract (plus damages), or
4. Defect must be important
(renders thing unfit or decreases 2. Demanding a proportionate
fitness) reduction of the price, with
5. Action must be instituted within damages
statute of limitations
6. Must be no waiver of warranty on Responsibility of a vendor for hidden
the part of the vendee. defects
Redhibitory defect
H.A.M.
Seller is responsible even he is in good It would depend on whether the seller
faith because he has to repair the had knowledge of such defect and
damage done. whether there has been a waiver of the
warranty.
If the hidden defects which the thing
sold may have: 1. If the thing should be lost in
consequence of the hidden
1. Render it unfit for the use for faults, and seller was aware of
which it is intended; or them – he shall:
2. Diminish its fitness for such use a. bear the loss,
to such an extent that had the b. return the price and
vendee been aware thereof, he c. refund the expenses of the
would not have acquired it or contract with damages
would have given a lower price
for it (NCC, Art. 1561). 2. If the thing is lost and seller was
not aware of the hidden faults –
Extent of warranty by the seller he shall:
against hidden defects
a. return the price and
The seller is responsible to the vendee interest
for any hidden faults or defects in the
thing sold, even though he was not b. reimburse the expenses of
aware thereof. the contract which the
buyer might have paid, but
When the seller is NOT not for damages
ANSWERABLE FOR THE DEFECTS of (Villanueva, 2004).
the thing sold
Prescriptive period
1. For patent defects or those which
are visible; Six months from date of the delivery of
the thing sold (NCC, Art. 1571).
2. Even for those which are not
visible if the buyer is an expert 40 days- redhibotory action based on
who, by reason of his trade or the frauds or defects of animals
profession, should have known
them (NCC, Art. 1561); 6 months-
3. If the contrary has been a. breach of warranty against
stipulated, and the vendor was hidden defects; recission of the
not aware of the hidden faults or contract because of the same;
defects in the thing sold (NCC, proportionate reduction in the
Art. 1566). price because of the same
Effect of a breach of warranty against b. rescission or proportionate
hidden defects reduction in the price for sales of
H.A.M.
real estate either by unit or for a 1. Buyer manifests to the
lump sum, because failure to seller the particular
comply with the provisions of the purpose for which the
contract goods are required; and
2. Buyer relies upon the
seller’s skill or judgment
Remedies of the buyer in case of sale
of things with hidden defects (NCC,
Art. 1567)
2. Warranty of merchantability
The vendee may elect between:
That goods are reasonably fit for
3. Withdrawing from the contract, or the general purpose for which
they are sold.
4. Demanding a proportionate
reduction of the price, with REMEDIES IN CASE OF
damages in either case.
BREACH OF WARRANTY
Waiver of warranty against eviction
Remedies of the buyer in case of
There is waiver of warranty against breach of warranty
eviction when the vendee has inspected
the premises and decides to 1. Accept goods and set up breach
consummate the contract based on such of warranty by way of recoupment
inspection. Under Arts. 1561 and 1653 in diminution or extinction or the
of the Civil Code, the vendor is price;
responsible for warranty against
hidden defects, but he is not 2. Accept goods and maintain
answerable for patent defects or action against seller for damages;
those, which are visible, and which
can be seen upon inspection (Jon and 3. Refuse to accept goods and
Marissa De Ysasi v. Arturo and Estela maintain action against seller for
Arceo, G.R. No. 136586, November 22, damages;
2001).
4. Rescind contract of sale and
Specific implied warranties in sale of refuse to receive goods/return
goods (NCC, Art. 1562) them when already received.
1. Warranty of fitness Remedies of the buyer in case of breach
of warranty - NOT ABSOLUTE
GR: No implied warranty
XPN:
H.A.M.
The vendee's remedies against a they were at time ownership was
vendor with respect to the warranties transferred;
against hidden defects or encumbrances
upon the thing sold, in the case of Arts. 3. If he fails to notify the seller within
1561, 1562, 1564, 1565 and 1566 of the a reasonable time of his election
Civil Code, may either be: to rescind.
1. to withdraw from the REVIEW:
contract or
2. demand a proportionate CONDITION vis-à-vis
reduction of the price, with WARRANTY
damages in either case.
Condition
The vendee may also ask for the
annulment of the contract upon proof of An uncertain event or contingency upon
error or fraud, in which case the ordinary the happening of which the obligation or
rule on obligations shall be applicable; right of the contract depends. In such
responsibility arising from fraud is case, the obligation of the contract does
demandable in all obligations and any not attach until the condition is
waiver of an action for future fraud is performed (De Leon, 2011).
void. Responsibility arising from
negligence is also demandable in any NOTE: There may be a contract of sale
obligation, but such liability may be of goods, whose acquisition by the seller
regulated by the courts, according to the depends upon a contingency, which
circumstances. may or may not happen [NCC, Art.
1462(2)].
The vendor could likewise be liable
for quasi-delict under Article 2176 of Effect of non-fulfillment of a
the Civil Code, and an action based condition
thereon may be brought by the vendee
(Coca-Cola Bottlers Philippines, Inc. v. If imposed on the perfection of contract
CA, G.R. No. 110295, October 18, – prevents the juridical relation itself
1993). from coming into existence.
Instances when the buyer cannot The other party may:
rescind the sale in case there is a
breach of warranty 1. Refuse to proceed with the
contract
1. If he knew of the breach of
warranty; 2. Proceed w/ contract, waiving the
performance of the condition
2. If he fails to return or offer to
return goods to seller in Condition v. Warranty
substantially as good condition as
H.A.M.
