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Article 1558

Formal summons to vendor essential.

Before a vendor may be legally liable for eviction is that he should be summoned inthe suit for eviction at the instance of the vendee

This is to give the vendor an opportunity to show that the action interposed againstthe vendee is unjust and to defend his title that he has transferred. In the absence

of such summons, the vendor is not bound to his warranty

Article 1559

Vendor to be made co-defendant requires a notification from the vendee which has beeninstituted against him to deprive him to the property purchased

Article 1560

Servitude is an encumbrance imposed upon an immovable for the benefit of anotherimmovable belonging to a different owner.

Warranty against encumbrances (non- apparent) requisites:

immovable sold is encumbered with non apparent burden or servitude notmentioned in the

nature of non apparent servitude or burden is such that it must be presumed thatthe buyer would not have acquired it had he been aware thereof

when breach of warranty exists: buyer may ask for rescission or indemnity warranty not applicable when non apparent burden or servitude is

recorded in the Registry of Property unless there is expressed warrantythat the thing is free from all burdens & encumbrances

Article 1561Warranty against hidden defects

SELLER does not warrant patent defect; caveat emptor Except when hidden

o subject matter may be movable or immovable

o nature of hidden defect is such that it should render the subject matter unfit for

the use of which it was intended or should diminish its fitnesso had the buyer been aware, he would not have acquired it or would have given a

lower price

when defect is visible or even if visible if the buyer is an expert by reason of histrade or profession, seller is not liable

obligation of seller for breach depends on whether he has knowledge of such defector noto seller is aware seller should return price & refund expenses of contract with

damageso seller is not aware - seller should return price and interest &refund expenses ( no

damages )

buyer may elect between withdrawing from contract and demanding proportionatereduction of price with damages in either case

applicable to judicial sale except judgments debtor not liable for damages

action to prescribe 6 months from delivery of subject matter

Article 1962Quality of goods state or condition

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implied warranty of fitnesso the buyer, expressly or by implication, manifest to the seller the

particular purpose for which the goods are acquiredo the buyer relies upon the sellers skill or judgment whether he be the

grower or manufacturer or not

implied warranty of merchantability - where the goods are bought by description.o Warranty of merchantability is a warranty hat goods are reasonably

fit for the general purpose for which they are sold

o Warranty of fitness is a warranty that the goods are suitable for thespecial purpose of the buyer which will not be satisfied by mere fitnessor general purposes.

Article 1563Under trade name defining what he wants, the buyer has exercised his own judgmentsinstead of relying upon that of the seller

Article 1564 1567

Sample not merchantable

General rule: the sale or contract to sell through sample is that goods be like thesample.

Buyers has no right of merchantability if the sample if he has inspected is not

Sample subject to latent defect

The defect in the goods, through inspection will not reveal and the buyer reasonablyrelies on the sellers skill or judgment.

The buyers is entitled to goods like those which the sample seems to represent

The ignorance of the vendee does not relieve him from liability to the vendee for any

hidden faults or defects in the thing sold.

- Ellaine Mae S. Burayag

BSA - 4

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Article 1918Principals Liability for Expenses:General Rule:Principal is liable for the expenses incurred by the agentExceptions: (AFUS)

If the agent acted in contravention of the principal's instructions, unless principaderives benefits from the contract

When the expenses were due to the fault of the agent

When the agent incurred them with knowledge that an unfavorable result wouldensue, if the principal was not aware thereof

when it was stipulated that the expenses would be borne by the agent, or that thelatter would be allowed only a certain sum

Article 1919

Modes Of Extinguishments Of Agency (EDWARD)

by the expiration of the period for which the agency was constituted

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by the death, civil interdiction, insanity or insolvency of the principal or ofthe agent

by the withdrawal of the agent

by the accomplishment of the object or purpose of the agency

By its revocation

By the dissolution of the firm or corporation which entrusted or accepted theagency

The list not exclusive; causes particular only to agency; may be extinguished by themodes of extinguishment of obligations in general whenever they are applicable, likeloss of the thing and novation

Agency is TERMINATED, as a matter of law, upon the outbreak of war.

Modes of extinguishing an agency, generally:

Agreement

Subsequent acts of the parties which may be either:o By the act of both parties or by mutual consent

o By the unilateral act of one of them3. By operation of law

Note:Even if the reason for extinguishing the agency is not true, the agent cannot insist onreinstatement. The agents can only demand damages.

Article 1920

Agency generally revocable at will by principal

Done by principle its called revocation

Done by the agent its called renunciation

It is not always necessary for the agent to renounce the agency expressly. He can do so

impliedly, such as:o where he has conducted himself in a manner incompatible with his duties as

agent

o when he abandons the object of his agency and acts for himself in commiting

a fraud upon his principal

o when he files a complaint against the principal and adopts an antagonistic

attitude towards him

Liability of the principal for damage caused by revocation

The principal is liable in damages occasioned by the wrongful discharge of theagent before the expiration of the period fixed.

Kinds of revocation

Express revocation

Implied revocation

Article 1921 1922

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