(1) The law so provides;

(2) If stipulated otherwise;

Santiago City, Philippines (3) The obligation requires the
REGULATORY FRAMEWORK AND LEGAL assumption of risk.
ISSUE IN BUSINESS 1
Atty. Jimmy I. Peru, JD,MBM,MICB,CPA e. The same rule shall apply to the
sale of fungible things, made
independently and for a single
LAW ON SALES (ART. price, or without consideration of
1458-1637) their weight, number, or measure.
f. Should fungible things be sold for
180 ARTICLES
a price fixed according to weight,
number, or measure, the risk shall
OBLIGATIONS OF THE not be imputed to the vendee until
VENDOR: they have been weighed, counted,
or measured and delivered, unless
1. TO TAKE CARE OF THE THING
the latter has incurred in delay.
AFTER THE CONTRACT HAS
BEEN PERFECTED, PRIOR TO RISK OF LOSS
DELIVERY. a. Unless otherwise agreed, the
goods remain at the seller's risk
INJURY OR BENEFIT PENDING until the ownership therein is
DELIVERY: After perfection of the transferred to the buyer, but
contract to the time of delivery: when the ownership therein is
transferred to the buyer the
a. The seller shall take care of it with
goods are at the buyer's risk
the proper diligence of a good whether actual delivery has
father of a family, unless the law been made or not, except that:
or the stipulation of the parties (1) Where delivery of the
requires another standard of care; goods has been made to
the buyer or to a bailee for
b. The buyer has a right to the fruits
the buyer, in pursuance of
of the thing from the time the
the contract and the
obligation to deliver it arises.
ownership in the goods
However, he shall acquire no real has been retained by the
right over it until the same has seller merely to secure
been delivered to him; performance by the buyer
c. They buyer may compel the seller of his obligations under the
to make the delivery. If the seller contract, the goods are at
delays, or has promised to deliver the buyer's risk from the
time of such delivery;
the same thing to two or more
(2) Where actual delivery has
persons who do not have the
been delayed through the
same interest, he shall be fault of either the buyer or
responsible for any fortuitous seller the goods are at the
event until he has effected the risk of the party in fault.
deliver.
b. If the thing is lost in part only,
d. The obligation to deliver shall be
the buyer may choose
extinguished if it should be lost or
between:
destroyed without the fault of the
(1) Withdrawing from the
seller, and before he has incurred
contract; and
in delay, except:

1|Page
 (2) Demanding the remaining (1) By nature or time – the
part, paying its price in improvement will inure to
proportion to the total sum the benefit of the buyer
agreed upon. (2) At the expense of the
seller – he shall have no
c. Where the parties purport a sale other right than that
of specific goods, and the goods granted to the
without the knowledge of the usufructuary,
seller have perished in part or e.g., he may remove the
have wholly or in a material part improvement if it will not
so deteriorated in quality as to be cause damage to the
substantially changed in thing.
character, the buyer may at his
option treat the sale: RES PERIT DOMINO: literally
(1) As avoided; or means the thing perishes with
(2) As valid in all of the existing
the owner.
goods or in so much thereof
as have not deteriorated, EXCEPTIONS:
and as binding the buyer to
a. By stipulation – when it was
pay the agreed price for the
stipulated that the risk of loss
goods in which the
ownership will pass, if the is with the buyer in
sale was divisible. possession of the thing even
if ownership is not yet
LOSS, DETERIORATION OR transferred.
IMPROVEMENT b. If ownership is retained only
THE RULES UNDER ART. to secure performance by the
1189 APPLIES, buyer. Title of the seller is
ACCORDINGLY: known as “SECURITY
a. The thing is lost (when it TITLE”. This is what’s
perishes, goes out of commerce,
provided under Art 1504(1).
or disappears in such a way that
(Lawyer’s Coop vs. Tabora)
its existence is unknown or it
cannot be recovered)
c. If there was delay in delivery
(1) Without fault of the
of the goods and thereafter
seller – obligation is the goods are destroyed due
extinguished; to fortuitous event, whoever
(2) With fault of the seller – he
caused the delay bears the
is liable for damages. loss.
b. The thing deteriorates
2. Obligation to pay taxes and
(1) Without fault of the seller –
incidents of the sale, unless
the impairment is borne by
otherwise agreed upon;
the buyer;
(2) With fault of the seller – the 3. To warrant the thing (see
debtor has two options: Warranties);
(a) To exact fulfillment and
ask for damages 4. To transfer ownership. The
(b) Rescission with ownership of the thing sold is
damages acquired by the vendee from
c. There is improvement the moment it is delivered to
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 him or in any other manner (5) Symbolic Delivery: where the
signifying an agreement that seller merely gives the key to
the possession is transferred a warehouse where the goods
from the vendor to the vendee. are located. Note, if the object
of the sale is the warehouse,
this is actual delivery, since
the buyer would have
DELIVERY possession and control of the
Is the mode by which ownership is warehouse.
transferred. It is accomplished by c. Delivery to a common carrier:
placing the thing in the control and when the parties so agreed that
possession of the vendee. the seller will deliver to the
common carrier for ultimate
MODES OF DELIVERY: delivery to the buyer. In this
THINGS case, there is already delivery
a. Actual Delivery: The actual and upon receipt of the common
physical transfer of the thing to the carrier.
buyer.
b. Constructive Delivery EXCEPT:
(1) Execution of Public (1) Ownership is reserved by the
Instrument: This mode of seller – such as if it is
delivery is available to both deliverable to the seller or his
sale of rights and sale of agent.
things; (2) The seller reserved
(2) Traditio Longa Manu: literally,
possession – goods are
long-hand delivery, or by
deliverable to the buyer, but
pointing to the thing sold
possession of the bill of
accomplished by mere
consent of the seller, lading is with the seller.
ownership transfers to the
MODE OF DELIVERY: AS TO
buyer, because at the time of
sale, the seller cannot transfer RIGHTS:
possession to the buyer, e.g., a. By execution of a public
the thing is leased by another. instrument;
(3) Consitutum Posessorium: at
b. When the title of ownership is
the time of sale, the seller is in
placed in the possession of the
possession and remains in
vendee (e.g., certificates of
possession in another concept
stock for sale of shares of
other than an owner, like that
stock);
of a lessee, depositary or
borrower. c. By the use of the vendee of his
(4) Brevi Manu: or short hand rights with the vendor’s consent.
delivery. When the buyer is in (e.g., the vendee of shares
possession of the thing, in a where the same has not been
concept other than that of an transferred in his name yet, with
owner, at the time of sale, and the consent of the owner,
remains in possession after through a proxy, he may
sale, now as owner. E.g., a exercise his rights as a
lessee who buys the thing stockholder)
leased.
SALE OR RETURN:
3|Page
 Where the goods are delivered to 3. Where by a contract of sale the
the buyer but the buyer has an seller is bound to send the goods
option to return the goods instead to the buyer, but no time for
of paying the price, the ownership sending them is fixed, the seller
passes to the buyer but he may is bound to send them within a
revest the ownership in the seller reasonable time.
by returning or tendering the 4. Where the goods at the time of
goods within the time fixed in the sale are in the possession of a
contract, or when no time is fixed, third person, the seller has not
within a reasonable time. fulfilled his obligation to deliver to
the buyer unless and until such
SALE ON APPROVAL OR ON third person acknowledges to the
TRIAL OR ON buyer that he holds the goods on
SATISFACTION: the the buyer's behalf.
ownership passes to the 5. Demand or tender of delivery
buyer: may be treated as ineffectual
a. When he signifies his approval or unless made at a reasonable
acceptance to the seller or does hour. What is a reasonable hour
any other act adopting the is a question of fact.
transaction. 6. Unless otherwise agreed, the
b. If he does not signify his approval expenses of and incidental to
or acceptance to the seller, but putting the goods into a
retains the goods without giving deliverable state must be borne
notice of rejection, then if a time by the seller.
has been fixed for the return of 7. As a rule, the time to deliver is at
the goods, on the expiration of the time of sale, if it is a pure
such time, and, if no time has obligation. However, as a rule,
been fixed, on the expiration of a the seller is not bound to deliver
reasonable time. What is a until the buyer pays.
reasonable time is a question of 8. If there is a period agreed upon,
fact. the obligation to deliver shall be
demandablev oses the right to
TIME AND PLACE OF make use of the period under Art.
DELIVERY: 1198
1. Whether it is for the buyer to take
possession of the goods or of the DELIVERY OF LESS OR
seller to send them to the buyer
is a question depending in each
MORE OF THE QUANTITY
case on the contract, express or AGREED UPON IN SALE OF
implied, between the parties. PERSONAL PROPERTY:
2. Apart from any such contract, 1. Delivery is less than quantity
express or implied, or usage of agreed upon, the buyer may:
trade to the contrary, the place of a. Reject the delivery; or
delivery is the seller's place of b. Accept or retain the goods
business if he has one, and if not delivered and pay:
his residence; but in case of a (1) The full contract price if
contract of sale of specific goods, he knew that the seller is
which to the knowledge of the not going to perform the
parties when the contract or the contract in full; or
sale was made were in some
other place, then that place is the
place of delivery.
4|Page
 (2) Pay the fair value of the
goods delivered if without b. If the delivery is in excess of the
such knowledge. area agreed upon, the buyer may:
2. Delivery is greater than quantity a. Accept the area agreed upon
agreed upon, the buyer may: and reject the rest; or
a. Accept the goods in the b. Accept the whole and pay at
quantity agreed upon and the contract rate.
reject the rest; or
b. Accept the whole of the The above rules likewise applies
goods delivered and pay for to judicial sales.
them at the contract rate.
3. Delivery of goods mixed with DELIVERY OF LESS OR
goods of different description not MORE OF THE QUANTITY
included in the contract, the AGREED UPON IN SALE OF
buyer may accept the goods REAL ESTATE FOR A LUMP
which are in accordance with the SUM PRICE:
contract and reject the rest. 1. Delivery is less than the area
4. In no. 2 and 3, if the subject agreed upon, the buyer is bound to
matter is indivisible, the buyer accept the actual area without any
may reject the whole of the goods. reduction of the price.
2. Delivery is more than the area
DELIVERY OF LESS OR agreed upon, the seller is bound
MORE OF THE QUANTITY to deliver the actual area without
AGREED UPON IN SALE OF any increase in the price.
REAL ESTATE WITH A 3. If the seller should not deliver the
STATEMENT OF AREA AND whole area which exceeds that
THE SALE IS AT A RATE OF A which was agreed upon, the buyer
CERTAI PRICE FOR A UNIT may:
a. Reduce the price to be paid, in
OF MEASURE OR NUMBER:
proportion to what is lacking in
the area or number; or
a. Delivery is LESS than that agreed b. Rescind the contract for failure
upon, the buyer may: of the vendee to deliver what
a. Ask for specific performance has been stipulated.
and demand delivery of the
shortage; RIGHTS OF AN UNPAID
b. Ask for the proportionate SELLER
reduction of the price (accion
Unpaid Seller: the seller of the
quanti minoris)
goods is deemed to be an unpaid
c. Rescission, in case:
seller when:
(1) The area lacking is more
The whole of the price has not
than 1/10 of that agreed
been paid or tendered; A bill of
upon; or
exchange or other negotiable
(2) The buyer would not have
instrument has been received as
entered into the contract,
conditional payment, and the
had he known of its
condition on which it was
smaller area.
received has been broken by
The same rules apply if any reason of the dishonor of the
part of the immovable is not of the instrument, the insolvency of the
quality specified in the contract. buyer, or otherwise
5|Page
 obtained judgment or decree for the
RIGHTS OF AN UNPAID price of the goods.
SELLER: notwithstanding that
the ownership of the goods may Sale of the thing by the buyer to
have passed to the buyer, the third persons:
unpaid seller of goods has the a. As a rule, the seller does not lose
following rights: his right to possessory lien or
right of stoppage in transit.
1. Possessory lien – right to retain b. Exceptions:
the goods or right to withhold (1) If the seller assented to the
delivery of the goods. transfer;
(2) If the goods are
Grounds: covered by a negotiable
a. Where the goods have been document of title and it is
sold without any stipulation sold to a purchaser for value
as to credit; in good faith to whom such
b. Where the goods have been document has been
sold on credit, but the term negotiated.
of credit has expired;
c. Where the buyer becomes 2. Stoppage in transitu – right to
insolvent. stop the goods while in transitu.

The seller may exercise his right Requisites:

of lien notwithstanding that he is in a. The seller already parted with
possession of the goods as agent or the possession of the goods;
bailee for the buyer. b. The goods are already in transit;
c. The buyer is insolvent.
Partial Lien: Where an unpaid seller
has made part delivery of the Goods are in transit:
goods, he may exercise his right of a. From the time when they are
lien on the remainder, unless such delivered to a carrier by land,
part delivery has been made under water, or air, or other bailee for
such circumstances as to show an the purpose of transmission to
intent to waive the lien or right of the buyer, until the buyer, or his
retention. agent in that behalf, takes
delivery of them from such
Loss of possessor lien: happens: carrier or other bailee;
a. When the seller delivers the b. If the goods are rejected by the
goods to a carrier or other bailee buyer, and the carrier or other
for the purpose of transmission to bailee continues in possession
the buyer without reserving the of them, even if the seller has
ownership in the goods or the refused to receive them back.
right to the possession thereof;
b. When the buyer or his agent Goods are no longer in transit:
lawfully obtains possession of the a. If the buyer, or his agent in that
goods; behalf, obtains delivery of the
c. By waiver. goods before their arrival at the
appointed destination;
The unpaid seller of goods, b. If, after the arrival of the goods at
having a lien thereon, does not lose the appointed destination, the
his lien by reason only that he has
6|Page
 carrier or other bailee a. The goods are perishable in
acknowledges to the buyer or his nature
agent that he holds the goods on b. The seller expressly reserves
his behalf and continues in the right of resale in case the
possession of them as bailee for buyer should make default, or
the buyer or his agent; and it is c. Where the buyer has been in
immaterial that further destination default in the payment of the
for the goods may have been price for an unreasonable time
indicated by the buyer;
c. If the carrier or other bailee To exercise such right: the unpaid
wrongfully refuses to deliver the seller must have a right of lien or
goods to the buyer or his agent in stoppage in transitu.
that behalf.
In case the resale resulted in
If part delivery of the goods has proceeds less than or more than
been made to the buyer, or his agent
in that behalf, the remainder of the
the price in the original sale:
goods may be stopped in transitu, a. If the resale price is LESS than
unless such part delivery has been the price in the original sale, the
under such circumstances as to show seller can recover from the
an agreement with the buyer to give up original buyer the difference as
possession of the whole of the goods. damages occasioned by the
breach of contract of sale;
Right of stoppage in transitu is
b. If the resale price is MORE than
exercised: the price in the original sale, the
a. By taking actual possession of the seller is entitled to the profit
goods; or made in such resale.
b. By giving notice of his claim to the
carrier or other bailee who is in Good Title
possession of the goods, as a  The buyer in the resale
consequence of which: acquires a good title as
(1) The carrier or bailee then against the original buyer.
must redeliver the goods to,
or according to the directions Notice: except in case of resale made
of, the seller. because the goods are perishable,
(2) The expenses of such notice shall be given to the original
delivery must be borne by the buyer about:
seller. a. The intention to resell – which is
(3) If, however, a negotiable relevat to prove that the buyer has
document of title representing been in default for an
the goods has been issued unreasonable length of time.
by the carrier or other bailee, b. The date, time and place of resale
he shall not be obliged to – to be considered doing the
deliver or justified in not resale in good faith and entitle the
delivering the goods to the seller to any deficiency.
seller unless such document
is first surrendered for Note, however, that failure to
cancellation. give notice does not affect the
validity of the resale.
3. Resale
Grounds: Participation: the seller is prohibited
from being the buyer in the resale,
7|Page
 either directly or indirectly, whether
the resale be public or private. DOUBLE SALE; MOVABLE
PROPERTY: if the same movable is
4. Rescission sold by the vendor to two or more
Grounds: vendees, the one who has a better
a. When the right to rescind is rigth over the thing shalle be the first
expressly reserved by the one to take possession in good faith.
seller;
b. When the buyer has been in DOUBLE SALE; IMMOVABLE
default in the payment of the PROPERTY: if the same immovable
price for an unreasonable
property is sold by the vendor to two or
time.
more vendees, the one who has a
To exercise such right: the better right over the thing shall be:
unpaid seller must have a right of lien 1. The one to first register in
or stoppage in transitu. good faith; if none,
2. The one to first take
Recovery of damages: the seller possession in good faith; if
is not liable to the buyer upon the none still,
contract of sale, but may recover from 3. The one with the oldest title.
the buyer damages for any loss
occasioned by the breach of contract. CONDITIONS: where the obligation of
either party to a contract of sale is
Notice: is not necessary for subject to any condition which is not
the validity of rescission. But the performed, such party may:
same shall be relevant in 1. Refuse to proceed with the contract; or
determining whether the buyer 2. Waive the performance of the
has been in default for an condition; or
unreasonable length of time. 3. Treat the non-performance as a
breach of warranty and ask for
Mutually Exclusive Rights: the
damages.
right of possessory lien and stoppage
in transitu are mutually exclusive in
WARRANTIES: Any affirmation of
the sense that the seller cannot have
fact or any promise by the seller
both rights at the same time. This is
because the right of possessory lien relating to the thing is an express
presupposes that the seller retains warranty if the natural tendency of
possession, while in stoppage in such affirmation or promise is to
transitu, the goods are supposedly in induce the buyer to purchase the
transit. same, and if the buyer purchase the
thing relying thereon.
Note, however, that for the
right of resale and right to rescind, Opinion of the seller: is not
it is necessary that the seller has understood to be a warranty unless the
either possessory lien or the right seller made such affirmation or
of stoppage in transitu. statement as an expert and it was
relied upon by the buyer.
Insolvency of the buyer: is a
requisite only for the right of stoppage Express Warranty: is an
in transitu, but not in all other rights. It affirmation of fact or promise by the
is, however, a ground to exercise seller relating to the thing which
possessory lien, but still, not a would induce the buyer to buy the
requisite. same. However, those relating to
8|Page
opinions of the seller are not loses the thing acquired or a part
considered warranties unless they thereof.
are made by experts and the buyer g. The defendant vendee shall ask,
relies upon them. within the time fixed in the Rules
of Court for answering the
IMPLIED WARRANTIES: complaint, that the vendor be
1. Warranty against eviction – made a co-defendant.
that the seller has a right to sell h. The vendor shall not be obliged to
the thing at the time when make good the proper warranty,
ownership is to pass, and that unless he is summoned in the suit
the buyer shall from that time for eviction at the instance of the
have and enjoy legal and vendee.
peaceful possession of the
thing; Extent of Liability: First, it will
depend whether the seller is in bad
Eviction; requisites: faith:
a. The vendee is deprived of the a. If the seller is in bad faith, he
whole or of a part of the thing shall be liable for:
purchased; (1) Value of the thing sold at the
b. By virtue of a final judgment time of eviction;
c. Such judgment is based on: (2) Income or fruits, if he has
(1) A right prior to the sale or been ordered to deliver them
(2) An act imputable to the to the party who won the suit
vendor against him;
Rules Applicable: (3) Costs of the suit which caused
a. The warranty applies even if there the eviction, and, in a proper
is no agreement to such effect; case, those of the suit bought
b. The vendee need not appeal from against the vendor for the
the decision in order that the warranty;
vendor may become liable for (4) Expenses of the contract, if the
eviction. vendee has paid them;
c. When the adverse possession (5) Damages and interests and
had been commenced before the ornamental expenses.
sale but the prescriptive period is
completed after the transfer, the b. If the seller is in good faith, the
vendor shall not be liable for liability of the vendor shall depend
eviction. whether there is a waiver executed
d. If the property is sold for non- by the buyer:
payment of taxes due and not (1) If there is no waiver, the
made known to the vendee before seller is liable for VICE above
the sale, the vendor except Damages.
is liable for eviction. (2) If there is a waiver, the
e. The judgment debtor is also liability of the vendor shall
responsible for eviction in judicial depend whether the buyer is
sales, unless it is otherwise aware of the risk of eviction:
decreed in the judgment. (a) Consciente – the buyer
f. The warranty cannot be enforced is not aware of the risk,
until a final judgment has been or without knowledge of
rendered, whereby the vendee the defect in the title of
the seller: seller is still

9|Page
 liable but only for the a. The defects are patent or those
VALUE of the thing at which may be visible; or
the time of eviction; b. Even if not visible, the vendee
who is an expert, by reason of his
(b) Intencionada – the
trade or profession, should have
buyer was aware of the
known.
risk of eviction or of the
defect in the title of the Warranty of Quality or Fitness of
seller, the seller is no
Goods:
longer liable for
a. Where the buyer, expressly or by
anything.
implication, makes known to the
Partial Loss: should the vendee seller the particular purpose for
lose only a part of the thing sold which the goods are acquired,
but the same is of such and it appears that the buyer
importance, in relation to the relies on the seller's skill or
whole, that he would not have judgment (whether he be the
bought it without said part, he grower or manufacturer or not),
may demand the rescission of the there is an implied warranty that
contract; but with the obligation to the goods shall be reasonably fit
return the thing without other for such purpose;
encumbrances that those which it b. Where the goods are brought by
had when he acquired it, instead description from a seller who
of enforcing the vendor’s liability deals in goods of that description
for eviction. (whether he be the grower or
manufacturer or not), there is an
Two or more things sold: the same implied warranty that the goods
rules as to partial loss shall apply: shall be of merchantable quality
a. If they have been jointly sold for a Other rules on warranty against
lumpsum; or hidden defects or of quality:
b. Even if they were sold for a a. The vendor is responsible to
separate price for each of them if the vendee for any hidden
it should appear that the vendee faults or defects in the thing
would not have purchased one sold, even though he was not
without the oth aware thereof, unless there is
contrary stipulation.
2. Warranty agains hidden b. In the case of contract of sale
defects or of quality - the thing of a specified article under its
shall be free from any hidden patent or other trade name,
faults or defects. there is no warranty as to its
fitness for any particular
Effect of Hidden Defects: it would
purpose, unless there is a
render the thing unfit for its
intended use; or diminish its stipulation to the contrary.
fitness for such use to such extent c. An implied warranty or
that, had the vendee been aware condition as to the quality or
thereof, he would not have fitness for a particular purpose
acquired it or would have given a may be annexed by the usage
lower price for it. of trade.
d. In the case of a contract of sale
Vendor not liable: in case: by sample, if the seller is a
dealer in goods of that kind,
there is an implied warranty
10 | P a g e
 that the goods shall be free the redhibitory defect of one shall
from any defect rendering them as a general rule, only give rise
unmerchantable which would to its redhibition, and not of the
not be apparent on reasonable others; except: if the vendee
examination of the sample. would not have purchased the
sound animal or animals without
Remedies of the vendee: the defective one, which is
a. Withdraw from the contract plus presumed when a team, yoke
damages; pair, or set is bought, even if a
b. Accion quanti minoris or separate price has been fixed for
demand a proportionate each one of the animals
composing the same.
reduction of the price plus
d. The above rule is applicable in
damages.
like manner to the sale of other
Loss of the thing with hidden things (not just animals).
e. There is no warranty against
defect; liability of the seller:
hidden defects of animals sold at
a. If the cause was the defect
fairs or at public auctions, or of
itself the seller shall be liable
live stock sold as condemned.
for (1)
f. The sale of animals suffering
b. If the cause of the loss is a
from contagious diseases shall
fortuitous event or through the
be void.
fault of the vendee, the seller
g. A contract of sale of animals
shall be liable to refund the
shall also be void if the use or
price less the value at the time
service for which they are
of loss, plus damages (if he
acquired has been stated in the
was aware).
contract, and they are found to
be unfit therefor.
Judicial sales: the above rules h. The redhibitory action, based on
likewise apply to judicial sales, the faults or defects of animals,
except the judgment detor shall not must be brought within forty
be liable for damages. days from the date of their
delivery to the vendee.
Period to file action: is 6 years from i. If the animal should die within
delivery. three days after its purchase,
the vendor shall be liable if the
Rules on hidden defects in animals:
disease which cause the death
a. Redhibitory Defect is the hidden
existed at the time of the
defect on animals that, even in
contract.
case a professional inspection
j. If the sale be rescinded, the
has been made, should be of
animal shall be returned in the
such nature that expert
condition in which it was sold
knowledge is not sufficient to
and delivered, the vendee being
discover it.
answerable for any injury due to
b. But if the veterinarian, through
his negligence, and not arising
ignorance or bad faith shall fail to
from the redhibitory fault or
discover or disclose it, he shall
defect.
be liable for damages.
k. Remedies of the vendee in case
c. If more than one animal is bought
of sale of animals with
(whether for a lump sum or for a redhibitory defects are similar to
separate price for each of them), the remedies for breach of
11 | P a g e
 warranty against hidden defects; excludes that of adjoining
but he must make use thereof owners.
within the same period which
has been fixed for the exercise
of the redhibitory action or 40
days.
l. Sale of large cattle is governed
by special laws.

3. Warranty against non-

apparent encumbrances: an
encumbrance (or an easement or
servitude) is a burden imposed
upon an immovable for the benefit
of another immovable belonging
to a different owner. It is non-
apparent, when there are no
external indications of their
existence.

The warranty against non-

apparent encumbrances arises
when the same is:
a. Not mentioned in the agreement;
or
b. Not recorded in the Registry of
Property (now Registry of
Deeds).

In which case, the buyer has the

following remedies, within 1
year, counted from:
a. Ask for the rescission of the
contract – from execution of the
deed;
b. Ask for damages – from
discovery.

Not applicable to: the implied

warranties are not applicable to a
sheriff, auctioneer, mortgagee,
pledgee or other person
professing to sell by virtue of
authority in fact or law, for the
sale of a thing in which a third
person has a legal or equitable
interest.

If there are co-owners: the right of

redemption of the co-owners

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