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Double Sale and Warranties

This document summarizes the key rules and warranties regarding double sales and sales transactions in the Philippines. It outlines the rules of preference in cases of double sales, defines express and implied warranties, and describes the various types of implied warranties including against eviction, easements/servitudes, hidden defects, merchantability, and fitness for a particular purpose. Remedies for the buyer in cases of breaches of these warranties are also summarized.

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0% found this document useful (0 votes)
198 views3 pages

Double Sale and Warranties

This document summarizes the key rules and warranties regarding double sales and sales transactions in the Philippines. It outlines the rules of preference in cases of double sales, defines express and implied warranties, and describes the various types of implied warranties including against eviction, easements/servitudes, hidden defects, merchantability, and fitness for a particular purpose. Remedies for the buyer in cases of breaches of these warranties are also summarized.

Uploaded by

Ryze
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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There is a double sale if the following are met:

1. There are two or more sales transactions pertaining to exactly the same subject matter
2. The sales transactions are valid
3. There are two (or more) buyers at odds over the rightful ownership of the subject matter
must, and each represent conflicting interests; and
4. The two (or more) buyers at odds over the rightful ownership of the subject matter must
each have bought from the very same seller.

RULES OF PREFERENCE IN CASE OF DOUBLE SALE OF IMMOVABLE


1. the first registrant in good faith;
2. should there be no entry, the first in possession in good faith; an
3. in the absence thereof, the buyer who presents the oldest title in good faith

This rule on double sales rule likewise makes reference to the familiar principle of primus
tempore, potior jure (first in time, stronger in right).

WARRANTIES
- representation made by the seller of the thing sold with respect to its character, quality, or
ownership by which he induces the buyer to purchase the same relying on said representation.

* Express warranties
* Implied warranties
do not apply to:
- sale on "as is, where is"
- sale of second hand articles
- sale by virtue of authority in fact or in law

TYPES OF IMPLIED WARRANTIES

Warranty against eviction


Essential elements
1. Vendee is deprived in whole/ in part of the thing purchased
2. He or she is so deprived by virtue of a final judgment
3. Judgment is based on a right prior to the sale or an act imputable to the vendor
4. Vendor is summoned in the suit for eviction at the instance of the vendee.
5. There is no waiver on the part of the vendee.

If this was waived, the vendor should act in good faith pero pag bad faith, yung waiver magiging
void.
Waiver consciente - waiver is voluntarily made by the vendee without the knowledge and
assumption of the risks of eviction. The seller will be liable for the FMV of the thing sold at the
time of eviction.
Waiver intencionada - waiver is made by the vendee with the knowledge of risks of eviction
and assumption of its consequences. The seller is no longer liable.
LIABILITY OF THE SELLER IN CASE OF EVICTION
1. Value of the thing sold at the time of eviction
2. Income or fruits if the seller has been ordered to deliver them to the party who won the suit
against him/her
3. Cost of suit which caused the eviction; those suit brought against the vendor for the warranty
4. Expenses of the contact (if the vendee has paid for them)
5. Damages and interests; ornamental expenses (if bad faith yung sale)

Vendee's remedies in case of partial eviction


> Rescission
> Enforcement of warranty

Easement or Servitude
- encumbrance imposed upon an immovable for the benefit of another immovable belonging to
a different owner.

Apparent easement/servitude
- are those which are made known and continually kept in view by external signs that reveal the
use and enjoyment of the same

Non-apparent easement/servitude
- are those which show no external indication of their existence
.
Vendee's remedies in case of easement and servitudes
> Rescission or damages (within one year)
> Damages only (after 1 year)

Warranty against hidden defects


Requisites
1. The defect must be hidden (not known and could not have been known)
2. The defect must exist at the time the sale was made
3. The defect must render the thing unfit for the use for which it is intended or diminishes its
fitness for such use to such an extent, that had the vendee been aware thereof, he would not
have acquired it or would have given a lower price for it.
4. The action to enforce it must be made within the period provided by law.
> 6 months from the delivery of the thing sold
> 40 days in case of animals
5. The vendee must give notice of the defect to the vendor within a resonable time.
6. There must be no waiver of the warranty on the part of the vendee.

General Rule: The vendor shall be liable to the vendee for any hidden defects or faults in the
thing sold, even if he/she was not aware of such fault/defect.
However, the waiver will be void if the vendor is in bad faith.
Remedies of the buyer
> withdrawal from/recission of the contract (accion redhibitoria)
> demand proportionate reduction of the price (accion quanti minoris)
with the right to damages in either cases.
If the vendor is aware of the hidden defects:
> the price paid
> the expenses of the contract
> damages
If the vendor is not aware of the hidden defects
> price paid
> interest thereon
> expenses of the contract (if paid by the vendee)

Article 1569 - thing sold has hidden fault and lost by fortuitous event or through the fault of the
vendee, the buyer may demand the vendor the price which he paid less the value which the
thing had when it was lost. But if acted in bad faith, the vendor shall pay damages.

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Warranty against merchantability
- it is implied warranty that the goods are fit for the general purpose of the thing and not
necessarily for the purpose of the buyer.
- where goods are bought by description, the seller impliedly warrants that the goods are of
merchantable quality.

Warranty that the thing purchased is fit for the purpose for which it was purchased /
Warranty fitness
- there is no implied warranty as to the quality of fitness for any particular purpose of the goods
under a contract of sale
Except:
1. Where the buyer, expressly or by implication, manifests to the seller the particular purpose for
which the goods are required
2. Where the buyer relies upon the seller's skill or judgment

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