Article 1561

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ARTICLE 1561

1. DEFINITION OF TERMS
a. Redhibition
- The avoidance of sale on account some vice or defects in the thing sold, which renders its use
impossible.
b. Redhibitory Action
- an action instituted to avoid sale on account of some vice or defects in the thing sold, which
renders its use impossible
**Accion Minoris or Estimatoris- return of a part of the purchaser price paid by the vendee
c. Redhibitory vice or defect
- Defect in the article sold against which defect the seller is bound to warrant
- The vice or defect must constitute an imperfection, a defect in its nature, of certain importance

**A minor defect does not give rise to redhibition

2. REQUISITES FOR WARRANTY AGAINST HIDDEN DEFECTS


a. Defect must be important
b. Hidden
c. Exist at the time of sale
d. Vendee must give notice of the defect to the vendor within a reasonable time
e. Action for rescission or reduction of the price must be brought within the proper period:
- 6 months from the delivery
- In case of animals, within 40 days from the date of delivery
f. No waiver of warranty on the part of the vendee

3. WHEN DEFECT IMPORTANT


a. Renders the thing sold unfit for the particular use
b. Diminishes fitness for such use that the vendee would not have acquired it he had been aware or
given a lower price

4. WHEN DEFECT HIDDEN


- Not known to the vendee
- Hidden to the eyes and cannot be discovered by ordinarily careful inspection or examination
- There is no warranty if the defect is visible
- Vendor’s liability CANNOT be enforced although defect is hidden if the vendee is expert who by
his profession, should have known it.

5. WHERE DEFECT PATENT OR MADE KNOWN


a. A warranty does not cover defects which the buyer must have observed
b. Same rule is applicable to a defect which is not obvious but of which the seller tells the buyer. If
the seller successfully uses art to conceal the defects, the seller is liable.
c. There is no implied warranty against hidden defects in the sale of 2nd hand goods. Except when
the seller acted in bad faith, he will be liable.
d. The seller may bind himself against patent or obvious defects if the intent to do so is clearly
evident
ARTICLE 1562

1. IMPLIED WARRANTIES OF QUALITY


- The purpose of holding the seller on his implied warranty is to promote high standard in
business and to discourage sharp dealings.
A. Implied warranty of fitness

General Rule:

- There is no implied warranty as to the quality or fitness for any particular purpose

Except:

a. The buyer expressly or by implication, manifest to the seller the particular purpose for which the
goods are required
b. The buyer relies upon the seller’s skill or judgement

B. Implied warranty of merchantability


- Goods are bought by description; the seller impliedly warrants that the goods are of
merchantable quality

2. WARRANTY OF MERCHANTABILITY DISTINGUISHED FROM WARRANTY OF FITNESS


a. Warranty of merchantability
- Warranty that the goods are reasonably for the general purpose for which they are sold
b. Warranty of fitness
- Warranty that the goods are suitable for the special purpose of the buyer which will not be
satisfied by mere fitness for general purposes

3. FITNESS FOR A PARTICULAR PURPOSE


- It should be noticed that the fitness for a particular purpose may be merely the equivalent of
merchantability
- Example: The particular purpose of a reaping machine is generally designed is reaping. If it will
not fulfill this purpose, it is not merchantable

ARTICLE 1563:

1. SALE UNDER A PATENT OR TRADE NAME


a. The description must be the buyer’s choice or the goods must not only be described and definite
but known, in order to preclude warranty of fitness
b. There is still an implied warranty of fitness for particular purpose where the buyer relied upon the
seller’s judgement rather than the patent or trade name.
c. The provision does not preclude an implied warranty of merchantability or fitness for particular if the
goods are ordinarily or generally sold

ARTICLE 1565:

1. EFFECT OF USAGE OF TRADE


- Absence of usage, no warranty would be implied.
ARTICLE 1566:

1. RESPONSIBILITY OF VENDOR FOR HIDDEN DEFECTS


a. Effect of ignorance of vendor
- Does not relieve him from the liability to the vendee
b. Exception
- Unless there is a stipulation
- The vendor was not aware of the hidden defects of the thing sold
c. When vendee aware of the defect
- He cannot complain

2. DOCTRINES OF “CAVEAT VENDITOR” AND “CAVEAT EMPTOR”


a. Caveat Venditor
- Let buyer beware
- The vendor is liable to the vendee for any hidden defaults in the thing sold, even though he was
not aware.
b. Caveat emptor
- the principle that the buyer alone is responsible for checking the quality and suitability of goods
before a purchase is made.

ARTICLE 1567:

1. ALTERNATIVE REMEDIES OF THE BUYER TO ENFORCE WARRANTY


a. Accion Redhibitoria
- Withdraw from the contract
b. Accion quanti minoris
- Demand proportionate reduction of the price with right to damages.

ARTICLE 1568:

1. EFFECT OF LOSS OF THING SOLD ON ACCOUNT OF HIDDEN DEFECTS


a. Vendor aware of hidden defects
- He shall bear the loss because he acted in bad faith
- The vendee has the right to recover price paid, expenses of the contract, and damages.

ARTICLE 1569:

1. EFFECT OF LOSS OF DEFECTIVE THING SOLD


a. If the thing sold had no hidden defects, lost through a fortuitous event or fault of the vendee,
loss
- Loss borne by the vendee
b. In case hidden defects existed
- Vendor is obliged to return the price paid less the value of the thing at the time of its loss
- Vendor is still made liable on his warranty
Art. 1561. The vendor shall be responsible for warranty against the hidden defects which the thing sold may
have, should they render it unfit for the use for which it is intended, or should they diminish its fitness for such
use to such an extent that, had the vendee been aware thereof, he would not have acquired it or would have
given a lower 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 visible if the vendee is an expert who, by reason of his trade or profession,
should have known them. (1484a)

Art. 1562. In a sale of goods, there is an implied warranty or condition as to the quality or fitness of the goods,
as follows:

(1) Where the buyer, expressly or by implication, makes known to the seller the particular purpose for which
the goods are acquired, and it appears that the buyer relies on the seller's skill or judgment (whether he be the
grower or manufacturer or not), there is an implied warranty that the goods shall be reasonably fit for such
purpose;

(2) Where the goods are brought by description from a seller who deals in goods of that description (whether
he be the grower or manufacturer or not), there is an implied warranty that the goods shall be of merchantable
quality. (n)

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. (n)

Art. 1564. An implied warranty or condition as to the quality or fitness for a particular purpose may be annexed
by the usage of trade. (n)

Art. 1565. In the case of a contract of sale by sample, if the seller is a dealer in goods of that kind, there is an
implied warranty that the goods shall be free from any defect rendering them unmerchantable which would not
be apparent on reasonable examination of the sample. (n)

Art. 1566. The vendor is responsible to the vendee for any hidden faults or defects in the thing sold, even
though he was not aware thereof.

This provision shall not apply if the contrary has been stipulated, and the vendor was not aware of the hidden
faults or 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 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 lost.

If the vendor acted in bad faith, he shall pay damages to the vendee. (1488a)

Art. 1570. The preceding articles of this Subsection shall be applicable to judicial sales, except that the
judgment debtor shall not be liable for damages.

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