Sales Part 6

• 1545- 1581 primarily on conditions and warranties 
•  Conditions and Warranties 

  What is a period? Period is future and certain to happen 

  What is the condition? Future and uncertainty to happen / It is something future and you are not sure, it’s uncertain to have any discuss 

  What about a warranty? It should happen because you are claiming that it will happen  
• Remedies - the party can 

  1. Refuse to proceed with the contract –  
  2. Waive the condition 
• Effect of non-fulfillment of condition – in a contract of sale 

  • If the seller or buyer was not able to fulfill the condition for the perfection of the contract of sale, then the remedies are the following: 
• Example: Suppose the seller in this case tells the buyer I will sell to you the land provided you pass the LECPA. The buyer couldn’t pass the LECPA. So, what are the remedies given to the seller? 1. The seller can refuse to proceed because the buyer was not able to fulfill the suspensive conditions. 2. Seller can waive the condition and tell the buyer okay notwithstanding you were not able to pass the licensure exam for CPA, I’m still going to sell it to you  

   
• The remedies are alternative  

  Can the non-fulfillment of the condition be treated as a breach of warranty? 

  • Yes, it's possible if the seller in this case told the buyer that it will happen in any event, so in this case that is not only a breach of condition it becomes a breach of warranty.  
• Express Warranty (1546) - Caveat Emptor [Sales talks] - The seller disclosed it the seller told the buyer about the things that he wants 
• Caveat Emptor


  Buyer beware
• General Rule


  Mere expression of an opinion by an ordinary person does not import a warranty unless the seller is an expert, and the opinion was relied upon by the buyer
• This does not signify fraud unless the seller is an expert, and the opinion was relied upon by the buyer
• The buyer is not supposed to believe the representation given by the seller because the seller is not an expert
• Unless the seller is an expert and the buyer relied on the expertise of the seller

  It becomes a warranty
• Unless the seller is an expert and the buyer relied on the expertise of the seller

  It becomes fraudulent
• Implied Warranty (1547) - it’s automatically part of the contract (natural element)  

  • No need to agree, the mere fact that the party is entering he contract of sale, it’s automatically part of the contract 
• 1. Implied warranty against eviction. (1548) - the seller represents that he is the owner of the thing  
  2. Implied warranty against hidden defect. (1561) - it is free from any defect or default in this case  
  3. Implied warranty of fitness or merchantability. (1562) -  
• When an "as is and where is" sale is made


  There is no implied warranty
• When a secondhand article is sold


  There is no implied warranty
• When a sale is made by virtue of authority in fact or law


  There is no implied warranty
• People who sell by authority in fact or law

  • Sheriff
  • Auctioneer
  • Mortgagee
  • Pledgee
• Implied warranty against eviction

  The vendee is deprived in whole or in part of the thing purchased based on a final judgement
• The vendee is deprived in whole or in part of the thing purchased
• Deprivation is based on a final judgement
• If the buyer was deprived of possession by a third person after the seller sold the property, there is no breach of warranty against eviction
• A final judgement is required for a breach of warranty against eviction
• If there is a final judgement, the buyer needs to appeal from the judgement of the lower court
• The judgement must be based on a right prior to the sale or an act imputable to the vendor
• The vendor must be summoned in the suit for eviction at the instance of the vendee
• There is no waiver on the part of the vendee
• A breach of warranty against eviction requires a final judgement and no waiver on the part of the vendee
• 1549- Vendee has no duty to appeal from judgement 
• 1551- Deprivation for non-payment of taxes 
• 1552- Liability of judgement debtor (the judgement debtor is liable for breach of warranty against eviction, judgement debtor in other words there is a judgement declared by the court) (v. 1570 – judgement debtor not liable for hidden defect [for the hidden defect the judgementator is not liable]) 
• 1555- Vendee can demand VICED – if he was deprived, it can demand the following price the value, the income, the cost, the expenses, the damages so if there’s already a final judgement the buyer can demand from the seller the value again the value, income, cost, expenses, and damages   
• 1556- Partial eviction (Rescind or enforce warranty) - the whole property was not deprived only a portion of it. What are the remedies given to the buyer? 1. He can receive 2. He can enforce the warranty  
• 1559- Vendor to be made a co-defendant- the seller must be made a co-defendant  
• 1558
• Summons


  A legal document ordering a person to appear in court
• Subpoena


  A legal document ordering a person to appear in court as a witness
• Being given a summons means you are a party to a suit
• Being given a subpoena means you are a witness