conditions and warranties.pdf

OBLIGATION OF THE VENDOR Section 3: Conditions and Warranties

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CONDITION

 ARTICLE 1545 -Condition• Uncertainty

event or contingency on the happening of which the obligation of the contract depends.

• In

such a case, the obligation of the contract does not attach until the obligation is performed.

Effect Of Non-fulfillment Of Condition • If

the obligation of either party is subject to any condition and such condition is not fulfilled, such party may either: 1. Refuse to proceed with the contract 2. Proceed with the contract, waiving the performance of the condition

Effect of non-fulfillment of Condition • If

the condition is in the nature of a promise that it should happen, the non-performance of such condition may be treated by the other party as a breach of warranty.

WARRANTY

KINDS OF WARRANTY • Express • Implied

Warranty

Warranty

 ARTICLE 1546

-Express Warranty1. it must be an affirmation of fact or any promise by seller relating to the subject matter of sale 2. natural tendency of affirmation or promise is to induce buyer to purchase subject matter 3. buyer purchases the subject matter relying thereon  – when

breached, seller is liable for damages

Condition Vs Warranty CONDITION

WARRANTY  

Purports to existence of obligation

Purports to performance of obligation

Condition must be stipulated to form part of the obligation

Need not be stipulated; may form part of obligation by provision of law

May attach itself to obligation of seller Relates to the subject matter itself or to deliver possession & transfer to obligation of the seller as to the subject matter of the sale

Effect of Expression of Opinion  Art. 1340 – Exaggerations in trade  Art. 1341 – Expression of an opinion  Art. 1343  –  Misrepresentation made in good faith

 ARTICLE 1547 -Implied WarrantyIn a contract of sale, unless a contrary intention appears, there is an implied warranty: 1. as to seller’s title 2. against hidden defects or unknown encumbrances 3. as to fitness or merchantability

When implied warranty not applicable • “As is and where is” sale • Sale • Sale

of secondhand articles

by virtue of authority in fact or law

 ARTICLE 1548

Subsection 1. - Warranty In Case Of Eviction  –  judicial

process whereby the vendee is deprived of the whole or part of the thing purchased by virtue of final  judgment based on a right prior to the sale or an act imputable to the vendor.

Essential Elements of Eviction •

Vendee is deprived in whole or in part of the thing purchased

•

Virtue of a final judgment

•

Judgment is based on a right prior to the sale or an act imputable to the vendor

•

The vendor was summoned in the suit for eviction at the instance of the vendee

•

There is no waiver on the part of the vendee

 ARTICLE 1549 • The

vendee need not appeal from the decision in order that the vendor may become liable for eviction.

 ARTICLE 1550 • When

an adverse possession had been commenced before the sale but the prescriptive period is completed after the transfer, the vendor shall not be liable for eviction.

Effect of Prescription • If   – Completed

before Sale

 – Completed

after Sale

 ARTICLE 1551 • If

the property is sold for nonpayment of taxes due and not made known to the vendee before the sale, the vendor is liable for eviction.