REGULATORY FRAMEWORK AND LEGAL ISSUES IN BUSINESS a) WHEN THERE IS BLEACH OF WARRANTY AGAINST EVICTION

MAY 05 – FINALS The seller’s implied warranty against eviction only applies (i.e., there has been
a breach of warranty) when the following conditions are present: (may eviction na
CONTINUATION – WEEK 7 CONDITIONS AND WARRANTIES nangyari kung nangyari yung mga sumusunod:)
a) Purchaser has been deprived of, or evicted from, the whole or
1. WARRANTY THAT SELLER HAS RIGHT TO SELL part of the thing sold;
In a contract of sale, unless a contrary intention appears, there is an implied  Ex: Sa lupa, kahit kaunting portion ng binili na lupa ay
warranty on the part of the seller that he has a right to sell the thing at the time when hindi na magamit nung buyer.
the ownership is to pass. Since warranty goes into the issue of performance of b) Eviction is by a final judgment;
obligation, the warranty of the seller “that he has a right to sell” refers only to the  May court proceedings
transfer of ownership at the point of consummation, and not to any representation as c) Basis thereof is by virtue of a right prior to the sale made by the
to ownership and the capacity to transfer the same at the point of perfection. seller; and
 Diba as discuss pwede magbenta kahit hindi ikaw ang owner, what Villanueva  Ex: Case ng Double Sales
is trying to say is that itong mga warranties na ito exist at the time of d) Seller has been summoned and made co-defendant in the suit for
consummation, so at the time of perfection kahit hindi ikaw ang owner ang eviction at the instance of the buyer.
mahalaga mayroon kang RIGHT TO SELL.  Kailangan kasama sa kaso
The foregoing warranty shall not be applicable to render liable a sheriff, The warranty cannot be enforced until a final judgment has been rendered,
auctioneer, mortgagee, pledgee, or other person professing to sell by virtue of whereby the buyer loses the thing acquired or a part thereof. The buyer need not
authority in fact or law, for the sale of a thing in which a third person has a legal or appeal from the decision in order that the seller may become liable for eviction.
equitable interest. There is no need for the buyer to resist to the fullest the action for eviction taken
 Hindi daw nag-aapply yung “the seller has the right to sell” kapag ang against him, since the warranty is a covenant on the part of the seller, and by
magbebenta ay mga sheriff, dahil take note, on the first place hindi sila yung having given the seller proper notice of the eviction, (i.e., by making him a party to
owner dahil isa itong public sale / public auction. Court sells or auction the case) the buyer is deemed to have complied with what is incumbent upon him,
properties not because siya yung owner o binigyan siya ng owner ng right, it and the seller, being a party to the case, must then take the lead to resist the
is because ito yung obligation niya according sa batas. claim of the third party on the subject matter of the sale.
 Special case ang bentahan ng mga sheriff, auctioneer, mortgagee, pledgee, c) PARTICULAR CAUSES GIVEN BY LAW
kasi sila yung mga nagbebenta na wala talagang personal na kinalaman doon When adverse possession had been commenced before the sale but the
sa mga properties na binebenta nila. prescriptive period is completed after the transfer, the seller shall not be liable for
Although Article 1547 uses the phrase “unless a contrary intention appears,” eviction.
there can be no legal waiver of such warranty without changing the basic nature of the If the property is sold for nonpayment of taxes due and not made known to the
relationship, for the warranty on the part of the seller that he has the capacity to sell, buyer before the sale, the seller is liable for the eviction.
i.e., to transfer ownership of the subject matter pursuant to the sale, is the essence of e) AMOUNTS FOR WHICH SELLER IS LIABLE IN CASE OF EVICTION
sale; unless, it amounts to clear assumption of risk on the part of the buyer, as when (Kung na-evict si buyer ano yung pwede niyang i-demand kay seller)
the obligation of the seller is subject to a condition. Under Article 1555 of the Civil Code, when the warranty has been agreed
2. WARRANTY AGAINST EVICTION (si seller nag wa-warrant na hindi mae-evict upon or nothing has been stipulated on this point, in case eviction occurs, the
yung buyer doon sa ownership and possession) buyer shall have the right to demand of the seller:
In a contract of sale, unless a contrary intention appears, there is an implied a) Return of the value which the thing sold had at the time of the
warranty on the part of the seller that when the ownership is to pass, the buyer shall eviction, be it greater or lesser than the price of the sale;
from that time have and enjoy the legal and peaceful possession of the thing. The  Ibalik yung presyo, bayaran siya ng damages, then kung
vendor shall answer for the eviction even though nothing has been said in the contract ano yung value before eviction yun yung measure ng
on the subject. compensation niya.
 Pwede niyang gamitin yung thing nang hindi nangangamba na mayroong b) Income or fruits, if buyer has been ordered to delivered them to
ibang kukuha nung property. the party who won the suit against him;
 Kung may ibang tao ang mang-evict, ex: Kung ma-evict yung isang buyer ng  Merong right si buyer doon sa income ng fruits
lupa dahil mayroong mas may better right, katulad sa Double Sale may isang c) Costs of the suit which caused the eviction, and, in a proper case,
mae-evict. In this case SELLER is liable for damages, dahil dapat hindi siya those of the suit brought against the seller for the warranty;
nagbenta pa, dahil alam naman niya na may problema.  Cost of suit kasi may mga kasuhan na nangyari
 d) Expensed of the contract, if the buyer has paid them; and ng lupa ay magpagawa ng underground aquarium, hindi niya ito
e) Damages and interests and ornamental expenses, if the sale was mahgagawa dahil may mga tubi nga na nakabaon sa ilalim
made in bad faith. Under Article 1560 of the Civil Code, the warranty shall apply only when the
following conditions are present:
f) WAIVER OF WARRANTY AND EFFECTS THEREOF a) The immovable sold is encumbered with any non-apparent burden or
Although Article 1548 of the Civil Code provides that the contracting parties to servitude, not mentioned in the agreement; and
a contract of sale “may increase, diminish, or suppress” the implied warranty  Ex/; hindi alam ng buyer na mayroong underground tunnel,
against eviction, nonetheless, the effect of waiver depends on the nature of such tapos kaya niya binili yung property na yun kasi gusto niyang
waiver, whether it is general or specific waiver, and whether done in good faith or magpatayo ng malaking underground aquarium, pero dahil sa
bad faith on the part of the seller. non-apparent servitude na ito (yung underground tunnel)
Under Article 1553, if the seller acted in bad faith then any stipulation hindi na magagawa ni Buyer yung purpose niya sa property.
exempting the seller from the obligation to answer for eviction shall be void. In cases like this the seller VIOLATES Warranty Against
On the other hand, if the buyer merely renounces the warranty in general NON-APPARENT servitudes.
terms, without knowledge of a particular risk, and eviction should take place, the b) The nature of such non-apparent burden or servitude is such that it
seller shall only pay the value which the thing sold had at the time of the eviction. must presumed that the buyer would not have acquired it had he
In other words, a general waiver of the warranty does not create the effect of been aware thereof.
waiver but merely limits the liability of the seller to the value of the thing sold at the b) WHEN WARRANTY NOT APPLICABLE
time of eviction. The warranty does not apply:
Should the buyer have made the waiver with knowledge of the risks of a) If the servitude is mentioned in the agreement;
eviction and assumed its consequences, the seller shall not be liable. When the  Kapag nakalagay na sa agreement na may non-apparent servitude
waiver is of a specific case of expected eviction, the waiver has the effect of yung property tapos si buyer binili pa rin ito, then hindi liable si seller
wiping out the warranty as to that specific risk, but not as to eviction caused by will not be liable to the warranty anymore
other reasons not covered in the waiver. b) If the non-apparent burden or servitude is recorded in the Registry of
 Pwede ba i-waive ang warranty against eviction? Ang pag waive ng mga Deeds, unless there is an express warranty that the thing is free from
implied warranties is case to case basis. all burden and encumbrances.
 Art. 1553, represents only warranty against eviction. Why? Minsan kasi may  Nakalagay sa titulo ng lupa na meron siyang non-apparent servitude.
mga nagbebenta na alam naman nila na may problema yung lupa, tapos hindi b) REMEDIES AND PRESCRIPTIVE PERIOD
sinasabi sa buyer yung problema, dito kita na agad na in bad faith yung seller. The buyer may either bring an action for rescission or sue for damages only if
 Pwedeng mag waiver as long as alam ng buyer kung ano yung mga he does so within one (1) year computed from the execution of the deed. If such one
consequences at problema at risks kung bibilihin at babayaran yung property year period has lapsed, the buyer may only bring an action for damages within an
at ito ay tinanggap niya. Kung alam at tinanggap ng buyer ang lahat ng sabit equal period, to be counted form the date on which he discovered the burden or
ng property then seller is not liable sa warranty against eviction. servitude.
3. WARRANTY AGAINST NON-APPARENT SERVITUDES (winawarrant ni seller  Kapag may breach of warranty pwede daw i-cancel / i-rescind
na WALANG easement or servitudes yung binebenta niya) yung COS or the buyer can also ask for damages but only
 NON-APPARENT SERVITUDES – ito yung mga easement, or servitudes – ito within the span of 1 year from the execution ng agreement,
yung mga burden sa property. Ex: Right of way; Kung bumili ka ng lupa sa kapag lumagpas na sa one year, damages nalang ang pwede
likod ng mga bahayan malayo sa daanan at nasaraduhan ang lupa mo. niyang i-demand within the another one year.
Kailangan mag provide ng land owner na nasa harapan mo ng Road Right of 4. WARRANTY AGAINST HIDDEN DEFECTS
Way. Under Article 1561 of the Civil Code, the seller shall be responsible for
 The case above burden yun doon sa landowner na nasa harap sa malapit sa warranty against the “hidden defect” which means: (paano mako-consider na yung
highway kasi kailangan niya pang mag provide ng daan para doon sa likod. property ay may hidden defect)
 Servitudes or Easement has two: a) Only when the nature of the hidden defect is such that it should render the
o Apparent – nakikita mo yung burden (ex: may nakikita kang building, subject matter unfit for the use for which it is intended; or (Ex: bumili ka ng
or irrigation linesa lupa na bibilhin mo) phone pero sira yung microphone, e kaya ka nga bumili ng phone ay para
o Non – Apparent – hindi mo kita sa property na may burden siya. (ex: pantawag)
Bibili ka ng lupa tapos sa ilalim nun may tubo ng oil o ng tubig b) Should diminish its fitness for such use to such an extent that, had the
underground). In line doon sa example, kung ang purpose ng bumili buyer been aware thereof, he would not have acquired it or would have
 given a lower price for it. (Ex: May mha sira sa property na nakakapag In the event of breach of the warranty against hidden defects,
diminish doon sa paggamit ng property, dahil kung sakaling alam ng Nutrimix Feeds Corp. also confirmed the principle under Article 1457 of the
buyer yung defect ay hindi nito bibilhin yung property o kaya naman i- Civil Code that the remedy of the buyer is either to withdraw from the
dedemand niya ito sa mas mababang halaga) contract (accion redhibitoria) or to demand a proportionate reduction of
The seller is not answerable for patent defects or those which are visible, or the price (accion quanti minoris), with damages in either case. A choice of
even for those which are not visible if the buyer is an expert who, by reason of his remedies is available to the buyer only when the thing has not been lost.
trade or profession, should have known them. If the subject matter of sale is actually lost, the extent of the
 Ex: bumili ka ng phone, tapos ang sira ng phone ay screen, in obligations of the seller for breach of warranty against hidden defects
this case it is not a hidden defect, kasi kita mo yung screen. depends on the following circumstances: cause of the lost, knowledge of the
This is the General rule: This warranty is only applicable doon hidden defect by seller, and whether there has been a waiver of the warranty,
sa mga hindi visible. thus:
 Exception to the general rule: Ex: if ikaw ay isang expert by a) If the thing sold should be lost as a consequence of the hidden faults:
reason of trade or profession (yung dapat alam mo na may i. If the seller was aware of them, he shall bear the loss, and
sira iyon) hindi mo magagamit yung warranty against hidden shall be obliged to return the price and refund the expenses
defect. Kaya kadalasan kapag bibili ng mga second hand na of the contract, with damages; or
sasakyan may mga kasama iyan na mga expert katulad ng ii. If he was not aware of them, the seller is obliged only to
mga mekaniko para malaman kung mayroong mga hidden return the price and interest thereon, and reimburse the
defects. expenses of the contract which the buyer might have paid,
The seller is responsible to the buyer for any hidden faults or defects in the but not for damages.
thing sold, even though he was not aware thereof. (This is one of the responsibilities b) If the thing is lost through a fortuitous event or through the fault of the
of the sellers, na kapag may hidden defect yung property na binebenta mo, liable ka buyer, then:
doon whether alam mo o hindi) Ex: Sa Abenson, para hindi sila maging liable kapag i. If the seller was not aware of the hidden defects, the buyer
may bumibili ng appliances pinapakita muna sa buyer na gumagana yung appliances, may demand from the seller the price which he paid, less the
pinapaandar muna bago mafinal na mabili, kasi they are careful sa mga ganitong value which the thing had when it was lost;
warranty. ii. If the seller acted in bad faith, in addition he shall pay
The warranty applies to both movable and immovable subject matters. damages to the buyer.
a) REQUISITES FOR BREACH OF WARRANTY c) WAIVER OF WARRANTY
Nutrimix Feeds Corp. v. Court of Appeals, held that “the requisites to If there has been a stipulation exempting the seller from hidden defects, then:
recover on account of hidden defects are as follows:” a) If the seller was not aware of the hidden defects, the lost of
a) Defect must be hidden; the thing by virtue of such defect will not make the seller
b) Defect must exist at the time the sale was made; (not one month after liable at all to the buyer; or
mom o mabili) b) If the seller was fully aware of such defect, such waiver is in
c) Defect must ordinarily have been excluded from the contract; (walang bad faith, and the seller would still be liable for the warranty.
waiver with respect doon sa defective parts. Ex: Sa car hindi lahat ng  Pwedeng i-waive ang warranty against hidden defect
parts ng sasakyan nagbibigay ng warranty ang seller, dahil iba iba if
sila ng component, magkakaiba rin sila ng life expectancy, katulad ng  A. Hindi liable si seller if hindi siya aware na may
engine pwedeng 5 to 10 years, pero ang gulong mga 2 years lang hidden defect yung property.
yan with normal use) Dapat kung kakasuhan mo yung seller for  B. If fully aware naman si seller na may hidden defect
breach of warranty dapat yung defect ay hindi siya excluded sa at nagpa-execute pa siya ng waiver of warranty, then
contract. magiging liable siya.
d) Defect, must be important (render the thing unfit or considerably  It is in question kung in bad faith or in good faith ba si
decreases fitness); seller. Dapat si seller must act in good faith, kung
e) Action must be instituted within the statute of limitations. ( Kung gusting ipa-waive ang warranty then dapat hindi niya
magkakaso ka ng Breach of warranty dapat within the prescriptive alam na may defect yung binebenta niya dahil kung
period pa siya) alam niya then in bad faith siya.
b) REMEDIES OF BUYER AND OBLIGATION OF SELLER FOR BREACH e) PRESCRIPTIVE PERIOD
OF WARRANTY
 Actions on warranties against hidden defects shall be barred after six (6) IMPLIED WARRANTIES IN SALE OF GOODS (Movables)
months from the delivery of the thing sold.  Applicable rin ditto yung sa Warranty on Hidden Defects.
5. REDHIBITORY DEFECTS OF ANIMALS 1. WARRANTY AS TO FITNESS OR QUALITY
Under Article 1576 of the Civil Code, even when professional inspection has Under Article 1562 of the Civil Code, in a sale of goods, there is an implied
been made, if the hidden defect of animals should be of such a nature that expert warranty or condition as to the quality or fitness of the goods, as follows:
knowledge is not sufficient to discover it, the defect shall be considered as redhibitory. a) Where the buyer, expressly or by implication, makes known to the
But if the veterinarian, through ignorance or bad faith, should fail to discover or seller the particular purpose for which the goods are acquired, and it
disclose it, he shall be liable for damages. appears that the buyer relies on the seller’s skill or judgment (whether
 Parang hidden defect sa mga animals na binebenta. Accion Redhibitoria he be the grower or manufacturer or not), there is an implied warranty
(withdraw from the contract),naga apply ito sa Sale of Animals. that the goods shall be reasonably fit for such purpose;
a) SALE OF TEAM  Ex: PPEs na ginagamit ng mga Frontliners, kung sinabi ng seller na mafi filter
Under Article 1572 of the Civil Code, if two or more animals are sold together, out nito yung virus, nagkakroon ng Implied Warranty as to Fitness, baka kasi
whether for a lump sum or for a separate price for each of them, the redhibitory yung PPE may pang specific use lang hindi siya pang virus pang bacteria
defect of one shall only give rise to its redhibition, and not that of the others; lang.
unless it should appear that the buyer would not have purchased the sound b) Where the goods are bought by description from a seller who deals in
animal or animals without the defective one. The latter case shall be presumed goods of that description (whether he be the grower or manufacturer
when a team, yoke, pair, or set is bought, even if a separate price has been fixed or not), there is an implied warranty that the goods shall be of
for each one of the animals composing the same. merchantable quality.
Note that the foregoing rules with respect to the sale of animals shall in like  Kung hindi mo nakita yung mismong item, sale by description lang siya.
manner be applicable to the sale of other things. Parang sa Lazada, Shopee, minsan ang ganda ganda sa picture tapos malaki
b) OTHER RULES ON ANIMALS siya, then pagdating maliit pala. Dapat tama ang description ng mga seller.
There is no warranty against hidden defects of animals sold at fairs or at Dapat kung shampoo sa tao iyon, dapat hindi siya makaksira sa buhok; dapat
public auctions, or of live stock sold as condemned. it will serve its purpose well.
The sale of animals suffering from contagious diseases shall be void. An implied warranty or condition as to the quality or fitness for a particular
c) PRESCRIPTIVE PERIOD purpose may be annexed by the usage of trade.
The redhibitory action, based on the faults or defects of animals, must be In the case of contract of sale of a specified article under its patent or other
brought within forty (40) days from the date of their delivery to the buyer. trade name, there is no warranty as to its fitness for any particular purpose, unless
If the animal should die within three (3) days after its purchase, the vendor there is a stipulation to the contrary.
shall be liable if the disease which cause the death existed at the time of the ACCORDING TO DE LEON
contract. • A warranty of merchantability is a warranty that goods are reasonably fit for
When the buyer returns the objects bought and demands the payment of the the general purpose for which they are sold, while warranty of fitness is a
purchase price, he is in effect “withdrawing from the contract” as provided in warranty that the goods are suitable for the special purpose of the buyer
Article 1567, where the prescriptive period is six months from the delivery of the which will not be satisfied by mere fitness for general purposes. (Dunfor Bros.
thing sold. Co. vs. Consolidated Iron-Steel Mfg. Co., C.C.A. Comm. 1928, 23 F. 2 nd, 461)
d) OBLIGATION OF BUYER TO RETURN • Si Villanueva ang term niya ay Warranty as to Fitness and Quality then kay
If the sale be rescinded, the animal shall be returned in the condition in which De Leon Warranty of Merchantability
it was sold and delivered, the buyer being answerable for any injury due to his • Ex: kung nagbebenta ako ng shampoo para sa tao, dapat kaya siyang gamitin
negligence, and not arising from the redhibitory fault or defect. ng lahat ng tao.
 Kung magre-rescind daw from COS because of Breach of warranty dapat • Ex: ang claim ng seller mapoprotektahan ka ng PPE laban sa virus, pero kung
kung nakabili ng animal dapat ibabalik niya ito in same condition nung binili nagka virus ka pa din may possible Breach of Contract doon
(exercise diligence of a good father of a family) 2. REQUISITES FOR BREACH OF WARRANTY TO APPLY
e) REMEDIES OF BUYER Nutrimix Feeds Corp. v. Court of Appeals, which covered a contract of sale of
In the sale of animals with redhibitory defects, the buyer may also elect animal feeds, described the requisites to be established for breach of the implied
between withdrawing from the contract and demanding a proportionate reduction warranty that the goods sold are reasonably fit and suitable to be used for the purpose
of the price, with damages in either case; but he must make use thereof within the which both parties contemplated, thus:
same period which has been fixed for the exercise of the redhibitory action. a) That the buyer sustained injury because of the product;
Discussed above are more of the implied warranties with regards to Immovables
 b) That the injury occurred because the product was defective or secure payment of ay portion of the price which has been paid, and with the remedies
unreasonably unsafe; and for the enforcement of such lien allowed to an unpaid seller by Article 1526 of the Civil
c) The defect existed when the product left the hands of the seller. Code.
MGA RELATED PROVISION SA MGA IMPLIED WARRANTIES
3. BUYER’S OPTION IN CASE OF BREACH OF WARRANTY ADDITIONAL TERMS OF WARRANTIES FOR CONSUMER GOODS
Under Article 1599 of the Civil Code, where there is a breach of warranty by • Bukod sa Law on Sales meron tayong Consumer Act of the Philippines, this
the seller in the sale of goods, the buyer may, at his election, avail of the following pertains to consumer products.
remedies: “Consumer products” is defined under Article 4(q) of the Consumer Act of the
a) Accept or keep the goods and set up against the seller, the breach of Philippines, to cover goods “which are primarily for personal, family, household
warranty by way of recoupment in diminution or extinction of the price; or agricultural purposes, which shall include but not limited to, food, drugs,
b) Accept or keep the goods and maintain an action against the seller for cosmetics, and devices.” (halos lahat ng binebenta)
damages for the breach of warranty; Article 68 of the Consumer Act provides that when the seller or manufacturer
c) Refuse to accept the goods, and maintain an action against the seller gives an express warranty, it shall be operative from the moment of sale, and
for damages for breach of warranty; consequently such seller or manufacture shall:
d) Rescind the contract of sale and refuse to receive the goods or if the
goods have already been received, return them or offer to return them a) Set forth the terms of warranty in clear and readily understandable language
to the seller and recover the price or any part thereof which has been and clearly identify himself as the warrantor;
paid. • Pag magbebnta ng property dapat yung warranty information ay nasa readily
When the buyer has claimed and been granted a remedy in any of these understandable manner, at identified na siya yung warrantor. Kais kailangang
ways, no other remedy can thereafter be granted, without prejudice to the buyer’s malaman kung sino ang nagbibigay ng warranty, either manufacturer or seller,
right to rescind, even if previously he has chosen specific performance when LG ba o yung Abenson. At dapat alam din kung hanggang kalian at ano yung
fulfillment has become impossible. winawarrant.
• The 4 options above are ALTERNATIVE. b) Identify the party to whom the warranty is extended;
4. WAIVER OF REMEDIES BY BUYER c) State the products or parts covered;
When goods have been delivered to the buyer, he cannot rescind the sale if d) State what the warrantor will do in the event of a defect, malfunction or failure
he knew of the breach of warranty when he accepted the goods without protest, or if to conform to the written warranty and at whose expense;
he fails to notify the seller within a reasonable time of the election to rescind, or if he • Dapat nakalagay doon kung anong gagawin ng buyer in case may breach of
fails to return or to offer to return the goods to the seller in substantially as good warranty or kapag nag malfunction yung property.
condition as they were in at the time the ownership was transferred to the buyer. But if e) State what the consumer must do to avail of the rights which accrue to the
deterioration or injury of the goods is due to the breach of warranty, such deterioration warranty; and
or injury shall not prevent the buyer from returning or offering to return the goods to f) Stipulate the period within which, after notice of defect, malfunction or failure
the seller and rescinding the sale. to conforms to the warranty, the warrantor will perform any obligation under
• Hindi pwedeng i-rescind nung buyer yung COS kapag binili niya ito kahit the warranty.
aware na siya na may problem sa fitness, quality or merchantability. • Noon uso pa yung CDR King, sinasabi nila na may 1 week replacement kung
• Pwedeng i-waive kapag ang cause ng hindi paggana ng property ay dahil may problem papalitan nila kung may lumabas na mga problems, pero kapag
may problema as to its fitness or quality pero hindi lang ito magiging effective after 1 week di na siya papalitan.
kapag ang nag cause ng deterioration ay external factors na (nahulog yung
phone sa pool) 1. SUBSIDIARY LIABILITY OF RETAILER
5. OBLIGATION OF BUYER ON THE PRICE The retailer shall be subsidiarily liable under the warranty in case of failure of
Where the buyer is entitled to rescind the sale and elects to do so, he shall both the manufacturer and distributor to honor the warranty, and that in such case the
cease to be liable for the price upon returning or offering to return the goods. If the retailer shall shoulder the expenses and costs necessary to honor the warranty. The
price or any part thereof has already been paid, the seller shall be liable to repay so remedy of the retailer in such case would be to proceed against the distributor or
much thereof as has been paid, concurrently with the return of the goods, or manufacturer.
immediately after an offer to return the goods in exchange for repayment of the price. • Kadalasan ang nag wawarrant ng products ay yung mga manufacturer, tapos
6. REFUSAL OF SELLER TO ACCEPT RETURN OF GOODS si retailer naman nagkakaroon sila ng subsidiary liability. In case na yung
Where the buyer is entitled to rescind the sale and elects to do so, and the Manufacturer or distributor ay hindi inhonor yung warranty pwedeng habulin
seller refused to accept an offer of the buyer to return the goods, the buyer shall yung si retailer.
thereafter be deemed to hold the goods as bailee for the seller, but subject to a lien to
 2. ENFORCEMENT OF WARRANTY which that they are found and from the place where they are located. It does
The warranty rights can be enforced by presentment to the immediate seller not extend to liens or encumbrances unknown to the vendee and could not be
either the warranty card or the official receipt along with the produced to be serviced disclosed by physical examination of the goods sold. (Monfor vs. Willis, [C.A.]
or returned to the immediate seller. No other documentary requirement shall be No. 6963-R, Oct. 15, 1951.)
demanded from the purchaser. • Ex: Itong phone ko ibebenta ko sayo ng “as is where is” sale, wala akong
• Kailan pwede i-enforce? Normally kapag bibili pinatatago ang resibo para representation na pwede mo pa itong magamit sa next 5 years. Kung ano ang
kapag nasira ipi-present mo yung resibo bilang katunayan ng pagbili. Kung ibebenta ko ayun na yun, nasaiyo na kung bibilhin mo. Dito hindi nag pa-
gusto mo i-exercise yung warranty ipapakita mo either OR o yung warranty promise ang seller na ito ay of good quality.
card. • Bentahan ng sasakyan in as is where is basis, hindi mo mahahanapan ng
3. DURATION OF WARRANTY fault yung seller kung pumapalya na yung sasakyan, kasi in the first place
The seller and the consumer may stipulate the period within which the aware ka naman na sa condition nito at nakalagay iyon sa agreement or
express warranty shall be enforceable. But if the implied warranty on merchantability COS.
accompanies an express warranty, both will be of equal duration. Any other implied
warranty shall endure not less than sixty (60) days nor more than one (1) year • 2. Sale of secondhand articles – there is no implied warranty as to the
following the sale of new consumer products. condition, adaptation, fitness or suitability for the purpose for which made, or
• Kailan ang duration ng warranty? Depende, kung express warranty naka the quality of an article sold as and for a secondhand article. But such articles
indicate naman yun, nilalagay ng manufacturer kung hanggang kailan yung might be sold under such circumstances as to raise an implied warranty. A
warranty niya certification issued by the vendor that a secondhand machine was in A-1
• Kung implied, nakadepende siya doon sa express warranty. condition is an express binding on the vendor. (Moles vs. Intermediate
4. BREACH OF WARRANTIES Appellate Court, 169 SCRA 777 [1989]).
In case of breach of express warranty, the consumer may elect to have the • Kung bibili ka ng mga pre-loved na mga property, mga second hand na ito, so
goods repaired or its purchase price refunded by the warrantor. In case the repair of expected mo nan a hindi ito in best quality, nagdedeteriorate na ito, pababa
the product in whole or in part is elected, the warranty within thirty(30) days by either na ang quality.
the warrantor or his representative. The thirty-day period, however, may be extended • In the case above kahit second hand siya nagbigay ng promise ang seller na
by conditions which are beyond the control of the warrantor or his representatives. it is in good condition pwede pa itong gamitin for 5 years, in this sense
In case the refund of the purchase price is elected, the amount directly nagbigay ng express warranty si seller, wala itong implied warranty (kasi
attributable to the use of the consumer prior to the discovery of the non-conformity exempted nga siya kasi sale of secondhand article),pero dahil nag promise si
shall be deducted. seller nagkaroon ng express warranty, so possible na magkaroon ng Breach
• Kung may Breach, base sa Law on Sale – may accion redhibitoria, accion of Warranty kahit secondhand lang ang property.
quantaminoria, rescission, specific performance.
• Pero kung Breach of warranty in accordance with Consumer Act of the • 3. Sale by virtue of authority in fact or law – The rule on implied warranty does
Philippines – Repair (30 days), or Refund (the purchase Price less the amount not apply to a sheriff, auctioneer, mortgagee, pledgee or other person who
attributable doon sa paggamit mo sa product before mo matuklasan yung sells. In other words, the person enumerated are not liable to a person with a
problem) legal or equitable interest in the thing sold (Art. 1547, par. 2)
5. CONTRARY STIPULATIONS • As discussed, special ang case ng public auction / mga foreclosures, for
All covenants, stipulations or agreements contrary to the provisions of Article those sales that is behind the fact, not because he is the seller but because
68 are specifically declared null and void and without legal effect. (Bawal ang he has the AUTHORITY given by law hindi sila liable sa mga implied
WAIVER, kung naka-indicate sa contract na wini-waive ang warranties or yung mga warranties.
nakalagay sa Article 68 base on Consumer Act of the Philippines – this will be
considered NULL & VOID.)

WHEN IMPLIED WARRANTY NOT APPLICABLE ACCORDING TO DE LEON