laww

• Implied warranty against non-apparent encumbrances:

  • Remedies within 1 year:

  1. Ask for rescission of the contract from execution of the deed

  2. Ask for damages from discovery

  • Not applicable to: sheriff, auctioneer, mortgagee, pledgee, or others selling a thing with a third party's legal or equitable interest
• Implied warranty against hidden defects on animals:

  • Remedies for vendee:

  1. Withdraw from the contract plus damages

  2. Demand a proportionate reduction of the price plus damages

  • Period to file action: 6 months from delivery
• Implied warranty against eviction:

  • Seller warrants the right to sell the thing at the time of ownership transfer
  • Buyer should have legal and peaceful possession from that time onwards
  • If not met, seller is liable for breach of warranty
• Express warranty:

  • Any affirmation of fact or promise by the seller inducing the buyer to purchase is an express warranty if the buyer relies on it
• Implied warranty against eviction:

  • Extent of liability:
  • If seller is in bad faith, liable for value of the thing at the time of eviction, income, costs of the suit, expenses of the contract, damages, and interests
  • If seller is in good faith, liability depends on the presence of a waiver executed by the buyer
• An express warranty is when the seller's affirmation or promise about a product is likely to induce the buyer to purchase it, and the buyer relies on this affirmation
• The seller's opinion is not considered a warranty unless the seller made the statement as an expert and the buyer relied on it
• In a contract of sale, if a condition is not performed, the party affected may refuse to proceed, waive the condition, or treat the non-performance as a breach of warranty and ask for damages
• In case of a double sale of movable property, the one with a better right over the thing has priority to take possession in good faith
• In the case of a double sale of immovable property, priority is given to:

  1. The one first registered in good faith

  2. If none, the one first taking possession in good faith

  3. If still none, the one with the oldest title
• Rights of an unpaid seller include the right of rescission when the buyer has been in default in payment for an unreasonable time, and the seller can recover damages for any loss due to the breach of contract
• The right of stoppage in transitu allows the seller to take back possession of goods from a carrier or bailee if the buyer is in default
• If a resale of goods results in a price less than the original sale, the seller can recover the difference as damages; if the resale price is more, the seller is entitled to the profit made
• The seller's rights include the right of resale when goods are perishable, the seller expressly reserves the right, or the buyer has been in default for an unreasonable time
• Goods are considered in transit from the time they are delivered to a carrier until the buyer takes delivery; they are no longer in transit if the buyer obtains delivery before the appointed destination
• The seller retains the right of possessory lien or stoppage in transit even if the goods have been sold to third parties, except in cases where the buyer is insolvent or the seller assented to the transfer
• The unpaid seller retains the right of possessory lien to retain the goods or withhold delivery if the goods have been sold without credit, the credit term has expired, or the buyer becomes insolvent
• An unpaid seller is one where the whole price has not been paid, or a negotiable instrument received as conditional payment has been dishonored due to buyer's insolvency or other reasons
• In the sale of real estate, if the delivered area does not correspond to the agreement:

  • If delivery is less, the buyer may ask for specific performance, demand delivery of the shortage, ask for a proportionate reduction, or rescind the contract
  • If delivery is more, the buyer may accept the area agreed upon and reject the rest, or accept the whole and pay at the contract rate
• In the sale of personal property, if there is a delivery of less than agreed upon quantity, the buyer may reject the delivery or accept and pay the full price if aware of the seller's inability to perform
• In the delivery of goods mixed with different description not in the contract, the buyer can accept the goods that match the contract and reject the rest
• Demand or tender of delivery may be treated as ineffective if not done at a reasonable time and place
• Delivery is the mode by which ownership is transferred, accomplished by placing the thing in the control and possession of the buyer or agent
• Actual Delivery: The actual and physical transfer of the thing to the buyer, where control over the thing is transferred to the buyer
• Constructive Delivery does not confer physical possession of the thing but by construction, such as through the execution of a public instrument
• Symbolic Delivery: The seller merely gives the key to a warehouse where the goods are located, considered actual delivery if the object of the sale is the warehouse
• Delivery to a common carrier: When the seller delivers to a common carrier for ultimate delivery to the buyer, there is already delivery upon receipt of the common carrier
• Where the goods are in the possession of a third person at the time of sale, the seller has not fulfilled the obligation to deliver to the buyer unless the third person acknowledges holding the goods on the buyer's behalf
• Ownership passes to the buyer in a sale on approval when the buyer signifies approval to the seller or retains the goods without giving notice of rejection
• In a sale or return, ownership passes to the buyer but can revert to the seller if the buyer returns the goods within the agreed time
• Obligations of the vendor include taking care of the goods prior to delivery and bearing the risk of loss until ownership is transferred to the buyer
• The Maceda Law applies to contracts of sale of residential realty on installments, providing protection to buyers in case of payment failure
• Rights under the Maceda Law include a grace period, the ability to sell or assign interest, and cash surrender value after a certain period of installment payments
• Void stipulations under the Maceda Law include automatic cancellation or forfeiture clauses upon default of the buyer
• Loss, Deterioration, or Improvement: Rules apply where the thing is lost, deteriorates, or improves, determining the obligations and liabilities of the seller
• Where delivery is delayed due to fault, the party at fault bears the risk of loss; if the thing is lost in part, the buyer may choose to withdraw or demand the remaining part
• Time and place of delivery: The place of delivery is the seller's place of business or residence unless otherwise agreed; the seller must send goods within a reasonable time if no specific time is fixed
• Whether the buyer takes possession of the goods or the seller sends them depends on the contract between the parties; the place of delivery is determined by the contract or the sale of specific goods
• The time to deliver is usually at the time of sale, but the seller is not bound to deliver until the buyer pays; if a period is agreed upon, the obligation to deliver is demandable at that time
• In glacial environments, the two main forms of erosion are abrasion and plucking; abrasion is a sandpapering effect caused by small rocks embedded within the glacier rubbing on bedrock