Law on Sales III (2) The income or fruits, if he has been ordered to deliver them to

the party who won the suit against him;

(3) The costs of the suit which caused the eviction, and, in a proper
Article 1545. Where the obligation of either party to a contract of case, those of the suit broughtagainst the vendor for the warranty;
sale is subject to any condition which is not performed, such party
may refuse to proceed with the contract or he may waive (4) The expenses of the contract, if the vendee has paid them; (5)
performance of the condition. The damages and interests, and ornamental expenses, if the sale
was made in bad faith. (1478)
If the other party has promised that the condition should
happen or be performed, such first mentioned party may also treat Article 1556. Should the vendee lose, by reason of the eviction, a
the nonperformance of the condition as a breach of warranty. part of the thing sold of such importance, in relation to the whole,
that he would not have bought it without said part, he may demand
Where the ownership in the thing has not passed, the buyer the rescission of the contract; but with the obligation to return the
may treat the fulfillment by the seller of his obligation to deliver the thing without other encumbrances that those which it had when he
same as described and as warranted expressly or by implication in acquired it.
the contract of sale as a condition of the obligation of the buyer to
perform his promise to accept and pay for the thing. He may exercise this right of action, instead of enforcing
the vendor's liability for eviction. The same rule shall be observed
Article 1546. Any affirmation of fact or any promise by the seller when two or more things have been jointly sold for a lump sum, or
relating to the thing is an express warranty if the natural tendency of for a separate price for each of them, if it should clearly appear that
such affirmation or promise is to induce the buyer to purchase the the vendee would not have purchased one without the other. (1479a
same, and if the buyer purchases the thing relying thereon.
Article 1557. The warranty cannot be enforced until a final judgment
No affirmation of the value of the thing, nor any statement has been rendered, whereby the vendee loses the thing acquired or
purporting to be a statement of the seller's opinion only, shall be a part thereof. (1480)
construed as a warranty, unless the seller made such affirmation or
statement as an expert and it was relied upon by the buyer. (n) Article 1558. vendor shall not be obliged to make good the proper
warranty, unless he is summoned in the suit for eviction at the
Article 1547. In a contract of sale, unless a contrary intention instance of the vendee. (1481a)
appears, there is:
Article 1559. The defendant vendee shall ask, within the time fixed
(1) An implied warranty on the part of the seller that he in the Rules of Court for answering the complaint, that the vendor be
has a right to sell the thing at the time when the ownership is to made a co-defendant. (1482a)
pass, and that the buyer shall from that time have and enjoy the
legal and peaceful possession of the thing; Article 1560. If the immovable sold should be encumbered with any
non-apparent burden or servitude, not mentioned in the agreement,
(2) An implied warranty that the thing shall be free from of such a nature that it must be presumed that the vendee would not
any hidden faults or defects, or any charge or encumbrance not have acquired it had he been aware thereof, he may ask for the
declared or known to the buyer. This article shall not, however, be rescission of the contract, unless he should prefer the appropriate
held to render liable a sheriff, auctioneer, mortgagee, pledgee, or indemnity.
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 Neither right can be exercised if the non-apparent burden
interest. (n) or servitude is recorded in the Registry of Property, unless there is
an express warranty that the thing is free from all burdens and
Article 1548. Eviction shall take place whenever by a final judgment encumbrances.
based on a right prior to the sale or an act imputable to the vendor,
the vendee is deprived of the whole or of a part of the thing Within one year, to be computed from the execution of the
purchased. deed, the vendee may bring the action for rescission, or sue for
damages. One year having elapsed, he may only bring an action for
The vendor shall answer for the eviction even though damages within an equal period, to be counted from the date on
nothing has been said in the contract on the subject. The contracting which he discovered the burden or servitude. (1483a)
parties, however, may increase, diminish, or suppress this legal
obligation of the vendor Article 1561. The vendor shall be responsible for warranty against
the hidden defects which the thing sold may have, should they
Article 1549. The vendee need not appeal from the decision in render it unfit for the use for which it is intended, or should they
order that the vendor may become liable for eviction. (n) diminish its fitness for such use to such an extent that, had the
vendee been aware thereof,
Article 1550. When adverse possession had been commenced
before the sale but the prescriptive period is completed after the He would not have acquired it or would have given a lower
transfer, the vendor shall not be liable for eviction. (n) price for it; but said vendor shall not be answerable for patent
defects or those which may be visible, or for those which are not
Article 1551. If the property is sold for nonpayment of taxes due and visible if the vendee is an expert who, by reason of his trade or
not made known to the vendee before the sale, the vendor is liable profession, should have known them. (1484a)
for eviction. (n)
Article 1562. In a sale of goods, there is an implied warranty or
Article 1552. The judgment debtor is also responsible for eviction in condition as to the quality or fitness of the goods, as follows:
judicial sales, unless it is otherwise decreed in the judgment. (n)
(1) Where the buyer, expressly or by implication, makes known to
Article 1553. Any stipulation exempting the vendor from the the seller the particular purpose for which the goods are acquired,
obligation to answer for eviction shall be void, if he acted in bad and it appears that the buyer relies on the seller's skill or judgment
faith. (1476) (whether he be the grower or manufacturer or not), there is an
implied warranty that the goods shall be reasonably fit for such
Article 1554. If the vendee has renounced the right to warranty in purpose;
case of eviction, and eviction should take place, the vendor shall
only pay the value which the thing sold had at the time of the (2) Where the goods are brought by description from a seller who
eviction. Should the vendee have made the waiver with knowledge deals in goods of that description (whether he be the grower or
of the risks of eviction and assumed its consequences, the vendor manufacturer or not), there is an implied warranty that the goods
shall not be liable. (1477) shall be of merchantable quality. (n)
Article 1555. When the warranty has been agreed upon or nothing Article 1563. In the case of contract of sale of a specified article
has been stipulated on this point, in case eviction occurs, the under its patent or other trade name, there is no warranty as to its
vendee shall have the right to demand of the vendor: fitness for any particular purpose, unless there is a stipulation to the
contrary.
(1) The return of the value which the thing sold had at the time of the
eviction, be it greater or less thanthe price of the sale;
Article 1564. An implied warranty or condition as to the quality or Art. 1578. If the animal should die within three days after its
fitness for a particular purpose may be annexed by the usage of purchase, the vendor shall be liable if the disease which cause the
trade. (n) death existed at the time of the contract. (1497a)

Article 1565. In the case of a contract of sale by sample, if the seller Art. 1579. If the sale be rescinded, the animal shall be returned in
is a dealer in goods of that kind, there is an implied warranty that the the condition in which it was sold and delivered, the vendee being
goods shall be free from any defect rendering them unmerchantable answerable for any injury due to his negligence, and not arising from
which would not be apparent on reasonable examination of the the redhibitory fault or defect. (1498)
sample. (n)
Art. 1580. In the sale of animals with redhibitory defects, the vendee
Art. 1566. The vendor is responsible to the vendee for any hidden shall also enjoy the right mentioned in article 1567; but he must
faults or defects in the thing sold, even though he was not aware make use thereof within the same period which has been fixed for
thereof. the exercise of the redhibitory action. (1499)

This provision shall not apply if the contrary has been Art. 1581. The form of sale of large cattle shall be governed by
stipulated, and the vendor was not aware of the hidden faults or special laws.
defects in the thing sold. (1485)

Art. 1567. In the cases of Articles 1561, 1562, 1564, 1565 and 1566,
the vendee may elect between withdrawing from the contract and
demanding a proportionate reduction of the price, with damages in
either case. (1486a)

Art. 1568. If the thing sold should be lost in consequence of the

hidden faults, and the vendor was aware of them, he shall bear the
loss, and shall be obliged to return the price and refund the
expenses of the contract, with damages. If he was not aware of
them, he shall only return the price and interest thereon, and
reimburse the expenses of the contract which the vendee might
have paid. (1487a)

Art. 1569. If the thing sold had any hidden fault at the time of the
sale, and should thereafter be lost by a fortuitous event or through PPt 4:
the fault of the vendee, the latter may demand of the vendor the
price which he paid, less the value which the thing had when it was Obligations of the Vendee
lost.
.
If the vendor acted in bad faith, he shall pay damages to
the vendee. (1488a) Article 1582. The vendee is bound to accept delivery and to pay the
price of the thing sold at the time and place stipulated in the
Art. 1570. The preceding articles of this Subsection shall be contract.
applicable to judicial sales, except that the judgment debtor shall not
be liable for damages. (1489a) If the time and place should not have been stipulated, the
payment must be made at the time and place of the delivery of the
Art. 1571. Actions arising from the provisions of the preceding ten thing sold. (1500a)
articles shall be barred after six months, from the delivery of the
thing sold. (1490) Article 1583. Unless otherwise agreed, the buyer of goods is not
bound to accept delivery thereof by installments.
Art. 1572. If two or more animals are sold together, whether for a
lump sum or for a separate price for each of them, the redhibitory Where there is a contract of sale of goods to be delivered
defect of one shall only give rise to its redhibition, and not that of the by stated instalments, which are to be separately paid for, and the
others; unless it should appear that the vendee would not have seller makes defective deliveries in respect of one or more
purchased the sound animal or animals without the defective one. instalments, or the buyer neglects or refuses without just cause to
take delivery of or pay for one or more instalments, it depends in
Art. 1573. The provisions of the preceding article with respect to the each case on the terms of the contract and the circumstances of the
sale of animals shall in like manner be applicable to the sale of other case, whether the breach of contract is so material as to justify the
things. (1492) injured party in refusing to proceed further and suing for damages
for breach of the entire contract, or whether the breach is severable,
Art. 1574. There is no warranty against hidden defects of animals giving rise to a claim for compensation but not to a right to treat the
sold at fairs or at public auctions, or of live stock sold as whole contract as broken. (n)
condemned. (1493a)
Article 1584. Where goods are delivered to the buyer, which he has
Art. 1575. The sale of animals suffering from contagious diseases not previously examined, he is not deemed to have accepted them
shall be void. unless and until he has had a reasonable opportunity of examining
them for the purpose of ascertaining whether they are in conformity
A contract of sale of animals shall also be void if the use with the contract if there is no stipulation to the contrary.
or service for which they are acquired has been stated in the
contract, and they are found to be unfit therefor. (1494a) Unless otherwise agreed, when the seller tenders delivery
of goods to the buyer, he is bound, on request, to afford the buyer a
Art. 1576. If the hidden defect of animals, even in case a reasonable opportunity of examining the goods for the purpose of
professional inspection has been made, should be of such a nature ascertaining whether they are in conformity with the contract.
that expert knowledge is not sufficient to discover it, the defect shall
be considered as redhibitory. Where goods are delivered to a carrier by the seller, in
accordance with an order from or agreement with the buyer, upon
But if the veterinarian, through ignorance or bad faith should fail the terms that the goods shall not be delivered by the carrier to the
to discover or disclose it, he shall be liable for damages. (1495) buyer until he has paid the price, whether such terms are indicated
by marking the goods with the words “collect on delivery,” or
Art. 1577. The redhibitory action, based on the faults or defects
otherwise, the buyer is not entitled to examine the goods before the
of animals, must be brought within forty days from the date of
payment of the price, in the absence of agreement or usage of trade
their delivery to the vendee.
permitting such examination. (n)
This action can only be exercised with respect to faults
Article 1585. The buyer is deemed to have accepted the goods
and defects which are determined by law or by local customs.
when he intimates to the seller that he has accepted them, or when
(1496a)
the goods have been delivered to him, and he does any act in
relation to them which is inconsistent with the ownership of the
seller, or when, after the lapse of a reasonable time, he retains the Where, under a contract of sale, the price is payable on a
goods without intimating to the seller that he has rejected them. (n) certain day, irrespective of delivery or of transfer of title and the
buyer wrongfully neglects or refuses to pay such price, the seller
Article 1586. In the absence of express or implied agreement of the may maintain an action for the price although the ownership in the
parties, acceptance of the goods by the buyer shall not discharge goods has not passed. But it shall be a defense to such an action
the seller from liability in damages or other legal remedy for breach that the seller at any time before the judgment in such action has
of any promise or warranty in the contract of sale. But, if, after manifested an inability to perform the contract of sale on his part or
acceptance of the goods, the buyer fails to give notice to the seller of an intention not to perform it.
the breach in any promise of warranty within a reasonable time after
the buyer knows, or ought to know of such breach, the seller shall Although the ownership in the goods has not passed, if
not be liable therefor. (n) they cannot readily be resold for a reasonable price, , the seller may
offer to deliver the goods to the buyer, and, if the buyer refuses to
Article 1587. Unless otherwise agreed, where goods are delivered receive them, may notify the buyer that the goods are thereafter held
to the buyer, and he refuses to accept them, having the right so to by the seller as bailee for the buyer. Thereafter the seller may treat
do, he is not bound to return them to the seller, but it is sufficient if the goods as the buyer’s and may maintain an action for the price.
he notifies the seller that he refuses to accept them. If he voluntarily (n)
constitutes himself a depositary thereof, he shall be liable as such.
(n) Article 1596. Where the buyer wrongfully neglects or
refuses to accept and pay for the goods, the seller may maintain an
Article 1588. If there is no stipulation as specified in the first action against him for damages for nonacceptance.
paragraph of article 1523, when the buyer’s refusal to accept the
goods is without just cause, the title thereto passes to him from the The measure of damages is the estimated loss directly
moment they are placed at his disposal. and naturally resulting in the ordinary course of events from the
buyer’s breach of contract.
Article 1589. The vendee shall owe interest for the period between
the delivery of the thing and the payment of the price, in the Where there is an available market for the goods in
following three cases: question, the measure of damages is, in the absence of special
circumstances showing proximate damage of a different amount, the
(1) Should it have been so stipulated; difference between the contract price and the market or current price
at the time or times when the goods ought to have been accepted,
(2) Should the thing sold and delivered produce fruits or income; or, if no time was fixed for acceptance, then at the time of the refusal
to accept.
(3) Should he be in default, from the time of judicial or extrajudicial
demand for the payment of the price. (1501a) If, while labor or expense of material amount is necessary
on the part of the seller to enable him to fulfill his obligations under
Article 1590. Should the vendee be disturbed in the possession or the contract of sale, the buyer repudiates the contract or notifies the
ownership of the thing acquired, or should he have reasonable seller to proceed no further therewith, the buyer shall be liable to the
grounds to fear such disturbance, by a vindicatory action or a seller for labor performed or expenses made before receiving notice
foreclosure of mortgage, he may suspend the payment of the price of the buyer’s repudiation or countermand. The profit the seller
until the vendor has caused the disturbance or danger to cease, would have made if the contract or the sale had been fully performed
unless the latter gives security for the return of the price in a proper shall be considered in awarding the damages. (n)
case, or it has been stipulated that, notwithstanding any such
contingency, the vendee shall be bound to make the payment. Article 1597. Where the goods have not been delivered to
the buyer, and the buyer has repudiated the contract of sale, or has
A mere act of trespass shall not authorize the suspension manifested his inability to perform his obligations thereunder, or has
of the payment of the price. (1502a) committed a breach thereof, the seller may totally rescind the
contract of sale by giving notice of his election so to do to the buyer.
Article 1591. Should the vendor have reasonable grounds to fear
(n)
the loss of immovable property sold and its price, he may
immediately sue for the rescission of the sale. Article 1598. Where the seller has broken a contract to
deliver specific or ascertained goods, a court may, on the application
Should such ground not exist, the provisions of article
of the buyer, direct that the contract shall be performed specifically,
1191 shall be observed. (1503)
without giving the seller the option of retaining the goods on
Article 1592. In the sale of immovable property, even though it may payment of damages. The judgment or decree may be
have been stipulated that upon failure to pay the price at the time unconditional, or upon such terms and conditions as to damages,
agreed upon the rescission of the contract shall of right take place, payment of the price and otherwise, as the court may deem just. (n)
the vendee may pay, even after the expiration of the period, as long
Article 1599. Where there is a breach of warranty by the
as no demand for rescission of the contract has been made upon
seller, the buyer may, at his election:
him either judicially or by a notarial act. After the demand, the court
may not grant him a new term. (1504a) (1) Accept or keep the goods and set up against the seller, the
breach of warranty by way of recoupment in diminution or extinction
Article 1593. With respect to movable property, the rescission of the
of the price;
sale shall of right take place in the interest of the vendor, if the
vendee, upon the expiration of the period fixed for the delivery of the (2) Accept or keep the goods and maintain an action against the
thing, should not have appeared to receive it, or, having appeared, seller for damages for the breach of warranty;
he should not have tendered the price at the same time, unless a
longer period has been stipulated for its payment. (3) Refuse to accept the goods, and maintain an action against the
seller for damages for the breach of warranty;

(4) Rescind the contract of sale and refuse to receive the goods or if
the goods have already been received, return them or offer to return
them to the seller and recover the price or any part thereof which
Actions for Breach of Contract of Sale of Goods
has been paid.
Article 1594. Actions for breach of the contract of sale of goods
When the buyer has claimed and been granted a remedy
shall be governed particularly by the provisions of this Chapter, and
in anyone of these ways, no other remedy can thereafter be granted,
as to matters not specifically provided for herein, by other applicable
without prejudice to the provisions of the second paragraph of article
provisions of this Title. (n)
1191.
Article 1595. Where, under a contract of sale, the ownership of the
Where the goods have been delivered to the buyer, he
goods has passed to the buyer and he wrongfully neglects or
cannot rescind the sale if he knew of the breach of warranty when
refuses to pay for the goods according to the terms of the contract of
he accepted the goods without protest, or if he fails to notify the
sale, the seller may maintain an action against him for the price of
seller within a reasonable time of the election to rescind, or if he fails
the goods.
to return or to offer to return the goods to the seller in substantially
as good condition as they were in at the time the ownership was to repurchase, without prejudice to the provisions of the Mortgage
transferred to the buyer. But if deterioration or injury of the goods is Law and the Land Registration Law with respect to third persons.
due to the breach or warranty, such deterioration or injury shall not (1510)
prevent the buyer from returning or offering to return the goods to
the seller and rescinding the sale. Article 1609. The vendee is subrogated to the vendor’s
rights and actions. (1511)
Where the buyer is entitled to rescind the sale and elects
to do so, he shall cease to be liable for the price upon returning or Article 1610. The creditors of the vendor cannot make
offering to return the goods. If the price or any part thereof has use of the right of redemption against the vendee, until after they
already been paid, the seller shall be liable to repay so much thereof have exhausted the property of the vendor. (1512)
as has been paid, concurrently with the return of the goods, or
immediately after an offer to return the goods in exchange for Article 1611. In a sale with a right to repurchase, the
repayment of the price. vendee of a part of an undivided immovable who acquires the whole
thereof in the case of article 498, may compel the vendor to redeem
Where the buyer is entitled to rescind the sale and elects the whole property, if the latter wishes to make use of the right of
to do so, if the seller refuses to accept an offer of the buyer to return redemption. (1513)
the goods, the buyer shall thereafter be deemed to hold the goods
as bailee for the seller, but subject to a lien to secure the payment of
any portion of the price which has been paid, and with the remedies
for the enforcement of such lien allowed to an unpaid seller by article
1526.

(5) In the case of breach of warranty of quality, such loss,

Article 1612. If several persons, jointly and in the same
in the absence of special circumstances showing proximate damage
contract, should sell an undivided immovable with a right of
of a greater amount, is the difference between the value of the
repurchase, none of them may exercise this right for more than his
goods at the time of delivery to the buyer and the value they would
respective share.
have had if they had answered to the warranty. (n)
The same rule shall apply if the person who sold an
EXTINGUISHMENT OF SALE
immovable alone has left several heirs, in which case each of the
Article 1600. Sales are extinguished by the same causes
latter may only redeem the part which he may have acquired.
as all other obligations, by those stated in the preceding articles of
this Title, and by conventional or legal redemption. (1506) Article 1613. In the case of the preceding article, the
vendee may demand of all the vendors or co-heirs that they come to
Conventional Redemption
an agreement upon the repurchase of the whole thing sold; and
Article 1601. Conventional redemption shall take place should they fail to do so, the vendee cannot be compelled to consent
when the vendor reserves the right to repurchase the thing sold, with to a partial redemption.
the obligation to comply with the provisions of article 1616 and other
Article 1614. Each one of the co-owners of an undivided
stipulations which may have been agreed upon. (1507) ARTICLE
immovable who may have sold his share separately, may
1602. The contract shall be presumed to be an equitable mortgage,
independently exercise the right of repurchase as regards his own
in any of the following cases:
share, and the vendee cannot compel him to redeem the whole
(1) When the price of a sale with right to repurchase is unusually property.
inadequate;
Article 1615. If the vendee should leave several heirs, the
(2) When the vendor remains in possession as lessee or otherwise; action for redemption cannot be brought against each of them
except for his own share, whether the thing be undivided, or it has
(3) When upon or after the expiration of the right to repurchase been partitioned among them.
another instrument extending the period of redemption or granting a
new period is executed; But if the inheritance has been divided, and the thing sold has
been awarded to one of the heirs, the action for redemption may be
(4) When the purchaser retains for himself a part of the purchase instituted against him for the whole. (1517)
price;
Article 1616. The vendor cannot avail himself of the right of
(5) When the vendor binds himself to pay the taxes on the thing repurchase without returning to the vendee the price of the sale, and
sold; in addition:

(6) In any other case where it may be fairly inferred that the real (1) The expenses of the contract, and any other legitimate
intention of the parties is that the transaction shall secure the payments made by reason of the sale;
payment of a debt or the performance of any other obligation.
(2) The necessary and useful expenses made on the thing sold.
Article 1605. In the cases referred to in articles 1602 and 1604, (1518)
the apparent vendor may ask for the reformation of the instrument.
(n) Article 1617. If at the time of the execution of the sale there
should be on the land, visible or growing fruits, there shall be no
Article 1606. The right referred to in article 1601, in the reimbursement for or prorating of those existing at the time of
absence of an express agreement, shall last four years from the redemption, if no indemnity was paid by the purchaser when the sale
date of the contract. was executed.

• Should there be an agreement, the period cannot exceed Should there have been no fruits at the time of the sale and
ten years. some exist at the time of redemption, they shall be prorated between
the redemptioner and the vendee, giving the latter the part
• However, the vendor may still exercise the right to corresponding to the time he possessed the land in the last year,
repurchase within thirty days from the time final judgment counted from the anniversary of the date of the sale. (1519a)
was rendered in a civil action on the basis that the
contract was a true sale with right to repurchase. (1508a) Article 1618. The vendor who recovers the thing sold shall
receive it free from all charges or mortgages constituted by the
Article 1607. In case of real property, the consolidation of vendee, but he shall respect the leases which the latter may have
ownership in the vendee by virtue of the failure of the vendor to executed in good faith, and in accordance with the custom of the
comply with the provisions of article 1616 shall not be recorded in place where the land is situated. (1520)
the Registry of Property without a judicial order, after the vendor has
been duly heard. (n) LEGAL REDEMPTION

Article 1608. The vendor may bring his action against Article 1619. Legal redemption is the right to be subrogated,
every possessor whose right is derived from the vendee, even if in upon the same terms and conditions stipulated in the contract, in the
the second contract no mention should have been made of the right place of one who acquires a thing by purchase or dation in payment,
or by any other transaction whereby ownership is transmitted by the liability, it shall last for one year only, from the time of the
onerous title. (1521a) assignment if the period had already expired.

Article 1620. A co-owner of a thing may exercise the right If the credit should be payable within a term or period
of redemption in case the shares of all the other co-owners or of any which has not yet expired, the liability shall cease one year after the
of them, are sold to a third person. If the price of the alienation is maturity. (1530a)
grossly excessive, the redemptioner shall pay only a reasonable
one. Article 1630. One who sells an inheritance without
enumerating the things of which it is composed, shall only be
Should two or more co-owners desire to exercise the answerable for his character as an heir.
right of redemption, they may only do so in proportion to the share
they may respectively have in the thing owned in common. (1522a) Article 1631. One who sells for a lump sum the whole of
certain rights, rents, or products, shall comply by answering for the
Article 1621. The owners of adjoining lands shall also legitimacy of the whole in general; but he shall not be obliged to
have the right of redemption when a piece of rural land, the area of warrant each of the various parts of which it may be composed,
which does not exceed one hectare, is alienated, unless the grantee except in the case of eviction from the whole or the part of greater
does not own any rural land. value.

This right is not applicable to adjacent lands which are Article 1632. Should the vendor have profited by some of
separated by brooks, drains, ravines, roads and other apparent the fruits or received anything from the inheritance sold, he shall pay
servitudes for the benefit of other estates. the vendee thereof, if the contrary has not been stipulated. (1533)

If two or more adjoining owners desire to exercise the right Article 1633. The vendee shall, on his part, reimburse the
of redemption at the same time, the owner of the adjoining land of vendor for all that the latter may have paid for the debts of and
smaller area shall be preferred; and should both lands have the charges on the estate and satisfy the credits he may have against
same area, the one who first requested the redemption. (1523a) the same, unless there is an agreement to the contrary. (1534)

Article 1634. When a credit or other incorporeal right in

litigation is sold, the debtor shall have a right to extinguish it by
Article 1622. Whenever a piece of urban land which is so reimbursing the assignee for the price the latter paid therefor, the
small and so situated that a major portion thereof cannot be used for judicial costs incurred by him, and the interest on the price from the
any practical purpose within a reasonable time, having been bought day on which the same was paid.
merely for speculation, is about to be re-sold, the owner of any
adjoining land has a right of pre-emption at a reasonable price. A credit or other incorporeal right shall be considered in
litigation from the time the complaint concerning the same is
If the re-sale has been perfected, the owner of the answered. The debtor may exercise his right within thirty days from
adjoining land shall have a right of redemption, also at a reasonable the date the assignee demands payment from him.
price.
Article 1635. From the provisions of the preceding article shall
When two or more owners of adjoining lands wish to be excepted the assignments or sales made:
exercise the right of pre-emption or redemption, the owner whose
intended use of the land in question appears best justified shall be (1) To a co-heir or co-owner of the right assigned;
preferred. (n)
(2) To a creditor in payment of his credit;
Article 1623. The right of legal pre-emption or redemption
shall not be exercised except within thirty days from the notice in (3) To the possessor of a tenement or piece of land which is subject
writing by the prospective vendor, or by the vendor, as the case may to the right in litigation assigned.
be. The deed of sale shall not be recorded in the Registry of
Property, unless accompanied by an affidavit of the vendor that he
has given written notice thereof to all possible redemptioners.

ASSIGNMENT OF CREDITS AND OTHER INCORPOREAL

RIGHTS

Article 1624. An assignment of creditors and other

incorporeal rights shall be perfected in accordance with the
provisions of article 1475.

Article 1625. An assignment of a credit, right or action

shall produce no effect as against third persons, unless it appears in
a public instrument, or the instrument is recorded in the Registry of
Property in case the assignment involves real property.

Article 1626. The debtor who, before having knowledge of

the assignment, pays his creditor shall be released from the
obligation.

Article 1627. The assignment of a credit includes all the

accessory rights, such as a guaranty, mortgage, pledge or
preference.

Article 1628. The vendor in good faith shall be

responsible for the existence and legality of the credit at the time of
the sale, unless it should have been sold as doubtful; but not for the
solvency of the debtor, unless it has been so expressly stipulated or
unless the insolvency was prior to the sale and of common
knowledge.

Even in these cases he shall only be liable for the price

received and for the expenses specified in No. 1 of article 1616. The
vendor in bad faith shall always be answerable for the payment of all
expenses, and for damages.

Article 1629. In case the assignor in good faith should

have made himself responsible for the solvency of the debtor, and
the contracting parties should not have agreed upon the duration of