ART. 1541.

(1) If the property sold is movable, the

ownership shall be acquired by the
Application of Articles 1539 and 1540 to
vendee who first takes possession in
judicial sales.
good faith;
Articles 1539 and 1540 are applicable to both
(2) If the property sold is immovable,
private (voluntary) and judicial sales when
the ownership shall belong, in the
the immovable sold is lacking in area or of
order hereunder stated, to:
inferior quality or greater in area than stated
in contract. (a) The vendee who first
registers the sale in good faith
Reason: the rules they contain are derived
in the Registry of Property
from the very nature of the contract of sale.
(Registry of Deeds) has a
preferred right over another
vendee who has not registered
ART. 1542. his title even if the latter is in
Sale of real estate made for a lump sum. actual possession of the
immovable property
(1) Mistake in area stated in contract
immaterial. — (b) In the absence of
The cause of the contract: the thing registration, the vendee who
sold independent and irrespective of first takes possession in good
its number or measure. faith; and
(c) In the absence of both
It is presumed that the purchaser registration and possession,
intended to buy a determinate object the vendee who presents the
in its entirety and not just any unit of oldest title (who first bought
measure or number. the property) in good faith.

(2) Where area or number stated

together with boundaries. —
SECTION 3. – CONDITIONS AND
If the vendor cannot deliver to the
WARRANTIES
vendee all that is included within the
boundaries mentioned in the ART. 1545
contract, the latter has the option to
Condition, means an uncertain event or
reduce the price in proportion to the
contingency on the happening of which the
deficiency or to set aside the
obligation (or right) of the contract depends.
contract.
Effect of non-fulfillment of condition.
ART. 1543. (1) If the obligation of either party is subject
to any condition and such condition is not
Prescription of actions.
fulfilled, such party may either:
Either rescission of the contract or
(a) refuse to proceed with the
proportionate reduction of the price must be
contract; or
brought within six months counted from the
day of delivery. (b) proceed with the contract, waiving
the performance of the condition.
(2) If the condition is in the nature of a
ART. 1544.
promise that it should happen, the non-
Rules as to preference of ownership in case performance of such condition may be treated
of a double sale. (same property is sold by by the other party as a breach of warranty.
the same vendor to different vendees)
ART. 1546.
Warranty is a statement or representation
made by the seller of goods,
contemporaneously and as a part of the
contract of sale, having reference to the
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 them.
Kinds of warranty.
(1) Express
(2) Implied
The seller is liable for his express warranties
(Art. 1546.) and for the implied warranties of
title (Art. 1547.), absence of hidden defects,
fitness or merchantability (Art. 1562.),
description (Arts. 1481, 1562.), and sample.
(Arts. 1481, 1565.)
Effect of express warranty.
Express warranty is any affirmation of fact or
any promise by the seller relating to the thing,
the natural tendency of which is to induce the
buyer to purchase the thing and the buyer thus
induced, does purchase the same.
A warranty being a part of the contract of
sale, it is immaterial whether the seller did not
know that it was true or false.
No intent is necessary to make the seller
liable for his warranty.
Effect of expression of opinion.
A mere expression of opinion, no matter how
positively asserted, does not import a
warranty unless the seller is an expert and his
opinion was relied upon by the buyer.
ART. 1547.
Implied warranty is that which the law
derives by implication or inference from the
nature of the transaction or the relative
situation or circumstances of the parties
irrespective of any intention of the seller to
create it.
Implied warranties in sale.
(1) Implied warranty as to seller’s title.
(2) Implied warranty against hidden
defects or unknown encumbrance.
(3) Implied warranty as to fitness or
merchantability.
When implied warranty not applicable.
(1) “As is and where is” sale.
(2) Sale of second-hand articles.
(3) Sale by virtue of authority in fact or
law.
SUBSECTION 1. — Warranty in Case of
Eviction
Eviction may be defined as the judicial
process, whereby the vendee is deprived of
the whole or part of the thing purchased by
virtue of a final judgment based on a right
prior to the sale or an act imputable to the
vendor.
Essential elements of warranty against
eviction.
(1) The vendee is deprived in whole
or in part of the thing purchased;
(2) He is so deprived by virtue of a
final judgment;
(3) The judgment is based on a right
prior to the sale or an act imputable to
the vendor;
(4) The vendor was summoned in the
suit for eviction at the instance of the
vendee; and
(5) There is no waiver on the part of
the vendee.
Types of eviction.
(1) Total – When the vendee is deprived
of the whole of the thing purchased
(2) Partial – in the ff. cases:
a. Vendee is deprived of part of
the thing purchased
b. Vendee is deprived of some
items that were jointly sold
with other items
c. If the immovable sold should
be encumbered with any non-
apparent burden or servitude
not mentioned in the
agreement, of such nature that
 the vendee would not have
acquired it had he been aware
thereof.
Trespass contemplated by warranty
against eviction.
Mere trespass in fact does not give rise to the
application of the doctrine of eviction.
The disturbance referred to in the case of
eviction is a disturbance in law which
requires that a person go to the courts of
justice claiming the thing sold, or part
thereof, and invoking reasons.
Vendor’s liability is waivable.
Warranty is not an essential element of a
contract of sale. Any stipulation, however,
exempting the vendor from the obligation to
answer for eviction shall be void if he acted
in bad faith.
ART. 1549.
Vendee has no duty to appeal from
judgment.
The vendee’s right against the vendor is not
lost because he, the vendee, did not appeal.
With a judgment becoming final whatever be
the cause of finality, the requirement of the
law is deemed satisfied.
ART. 1550.
Effect of prescription.
By prescription, one acquires ownership and
other real rights through the lapse of time in
the manner and under the conditions
prescribed by law. In the same way, rights
and actions are lost by prescription.
(1) Completed before sale. — The
vendee may lose the thing purchased
to a third person who has acquired
title thereto by prescription.
(2) Completed after sale. — Even if
prescription has started before the
sale but has reached the limit
prescribed by law after the sale, the
vendor is not liable for eviction.
ART. 1551.
Deprivation for nonpayment of taxes.
Vendor is liable for eviction for an act
imputable to him.
It is required, that at the time of the sale, the
non-payment of taxes was not known to the
vendee.
ART. 1552.
Liability of judgment debtor.
The rule on implied warranty does not apply
to a sheriff who sells by virtue of authority in
law.
The judgment debtor is responsible for
eviction and hidden defects even in judicial
sales, unless otherwise decreed in the
judgment.
ART. 1553.
Stipulation waiving warranty.
(1) Effect of vendor’s bad faith. — He
cannot even by stipulation, be exempt
from warranty against eviction,
because he acted in bad faith.
(2) Effect of vendee’s bad faith. — It is a
requisite, however, that the vendee is
not himself guilty of bad faith in the
execution of the sale. He is not,
therefore, entitled to the warranty
against eviction, nor is he entitled to
recover damages.
ART. 1554.
Kinds of waiver of eviction.
(1) Consciente, waiver is voluntarily made by
the vendee without the knowledge and
assumption of the risks of eviction; and
(2) Intencionada, waiver is made by the
vendee with knowledge of the risks of
eviction and assumption of its consequences.
Effect of waiver by vendee.
(1) If the waiver was only conscious, the
vendor shall pay only the value which the
thing sold had at the time of eviction.
(2) In the second kind of waiver, the vendor
is exempted from the obligation to answer for
eviction, provided he did not act in bad faith.
ART. 1555.
Rights and liabilities in case eviction
occurs.
(1) Return of value of thing.
(2) Income or fruits of thing.
(3) Costs of the suit
(4) Expenses of the contract.
(5) Damages and interests.
ART. 1556.
Alternative rights of vendee in case of
partial eviction.
The vendee has the option either to enforce
the vendor’s liability for eviction or to
demand rescission of the contract.
Rule is applicable
(1) When the vendee is deprived of a part of
the thing sold if such part is of such
importance to the whole that he would not
have bought the thing without said part; or
(2) When two or more things are jointly sold
whether for a lump sum or for a separate price
for each, and the vendee would not have
purchased one without the other.
ART. 1557.
Final judgment of eviction essential.
Two of the essential elements for the
enforcement of warranty in case of eviction,
namely:
(1) deprivation of the whole or of a part of the
thing sold; and
(2) existence of a final judgment.
ART. 1558.
Formal summons to vendor essential.
Another essential requisite before a vendor
may be legally liable for eviction is that, he
should be summoned in the suit for eviction
at the instance of the vendee.
ART. 1559.
Vendor to be made co-defendant.
The defendant vendee threatened with
eviction who wishes to preserve his right of
warranty, should call in the vendor to defend
the action which has been instituted against
him.
ART. 1560.
Rights of vendee where immovable sold
encumbered with non-apparent burden.
Although the vendee is not deprived of the
thing sold, totally or partially, the vendee
may still rescind the contract or ask for
indemnity, if the thing sold should be
encumbered with any non-apparent burden or
servitude, not mentioned in the agreement of
such a nature that the vendee would not have
acquired it had he been aware thereof.
A servitude (or easement) is an encumbrance
imposed upon an immovable for the benefit
of another immovable belonging to a
different owner.
When rights of vendee cannot be
exercised.
(a) If the burden or servitude is apparent, that
is, “made known and is continually kept in
view by external signs that reveal the use and
enjoyment of the same’’ (Art. 615, par. 4.);
(b) If the non-apparent burden or servitude is
registered; and
(c) If the vendee had knowledge of the
encumbrance, whether it is registered or not.
When action must be brought.
Must be brought within one year from the
execution of the deed of sale. If the period has
already elapsed, the vendee may only bring
an action for damages within one year from
the date of the discovery of the non-apparent
burden or servitude.
SUBSECTION 2. — Warranty Against
Hidden Defects of, or Encumbrances
Upon, the Thing Sold
ART. 1561.
Requisites for warranty against hidden
defects.
(1) The defect must be important or serious;
(2) It must be hidden;
(3) It must exist at the time of the sale;
(4) The vendee must give notice of the defect
to the vendor within a reasonable time;
(5) The action for rescission or reduction of
the price must be brought within the proper
period — 6 months from the delivery of the
thing sold or within 40 days from the date of
the delivery in case of animals; and
(6) There must be no waiver of warranty on
the part of the vendee.
When defect important.
(1) It renders the thing sold unfit for the use
for which it is intended; or
(2) If it diminishes its fitness for such use to
such an extent that the vendee would not have
acquired it had he been aware thereof or
would have given a lower price for it.
When defect hidden.
The defect is hidden (or latent) if it was not
known and could not have been known to the
vendee.
ART. 1562.
Implied warranties of quality.
Quality of goods includes their state or
condition.
(1) Implied warranty of fitness. —
(a) the buyer, expressly or by
implication, manifests to the seller the
particular purpose for which the
goods are required, and
(b) the buyer relies upon the seller’s
skill or judgment.
Then, whether he be the grower or
manufacturer or not — there is an
implied warranty that the goods are
reasonably fit for such purpose.
(2) Implied warranty of merchantability. —
Where goods are bought by description, the
seller impliedly warrants that the goods are of
merchantable quality.
Warranty of fitness and warranty of
merchantability distinguished.
A warranty of merchantability is a warranty
that goods are reasonably fit for the general
purpose for which they are sold.
Warranty of fitness is a warranty that the
goods are suitable for the special purpose of
the buyer which will not be satisfied by mere
fitness for general purposes.
ART. 1563.
In the case of contract of sale of a specified
article under its patent or other trade name,
there is no warranty as to its fitness for any
particular purpose, unless there is a
stipulation to the contrary.
Sale under a patent or trade name.
(1) By exactly defining what he wants,
the buyer has exercised his own
judgment instead of relying upon that
of the seller.
(2) Article 1563 provides an exception in
case of “a stipulation to the contrary.”
ART. 1564.
Effect of usage of trade.
A warranty as to the quality or fitness for a
particular purpose may be attached by usage
to a contract containing no express provision
in regard to warranty, though in the absence
of usage no warranty would be implied. The
usage is relied on for the purpose of showing With respect to third persons, however, the
the intention of the parties. rule of caveat emptor still applies.

ART. 1565.
Merchantability of goods sold by sample.
(1) Where sample not merchantable.
All the buyer is entitled to, in case of
a sale or contract to sell by sample, is
that the goods be like the sample, so
he has no right to have the goods
merchantable if the sample which he
has inspected is not.

(2) Where sample subject to latent defect.

Where the defect in the goods is of
such a character that inspection will
not reveal it, so in the case of a sale by
sample, if the sample is subject to a
latent defect, and the buyer
reasonably relies on the seller’s skill
or judgment, the buyer is entitled not
simply to goods like the sample, but
to goods like those which the sample
seems to represent, that is,
merchantable goods of that kind and
character.

ART. 1566.
Effect of ignorance of vendor of hidden
defects.
The ignorance of the vendor does not relieve
him from liability to the vendee for any
hidden faults or defects in the thing sold.
Exception: The parties, however, may
provide otherwise in their contract

Doctrines of “caveat venditor” and

“caveat emptor.”
Before, the implied warranty of quality was
not recognized and the rule was then caveat
emptor (let the buyer beware).
The doctrine of caveat venditor (let the seller
beware) was adopted in accordance with
which “the vendor is liable to the vendee for
any hidden faults or defects in the thing sold,
even though he was not aware thereof.”