Photo from Unsplash | Samuel Regan-Asante
The following post does not create a lawyer-client relationship between Alburo Alburo and Associates Law Offices (or any of its lawyers) and the reader. It is still best for you to engage the services of a lawyer or you may directly contact and consult Alburo Alburo and Associates Law Offices to address your specific legal concerns, if there is any.
Also, the matters contained in the following were written in accordance with the law, rules, and jurisprudence prevailing at the time of writing and posting, and do not include any future developments on the subject matter under discussion.
AT A GLANCE:
There are two types of warranties provided by a seller: express and implied.
An express warranty is any statement or promise made by the seller regarding the product. It is considered express if it is likely to influence the buyer’s decision to make the purchase, and if the buyer relies on it. Statements about the value of the product or opinions of the seller are not considered warranties, unless the seller is an expert and the buyer relies on their statement.
An implied warranty is not explicitly stated by the seller but is inferred by the law based on the nature of the transaction and the circumstances of the parties. It is established regardless of whether the seller intended to create it or not.
(Article 1546 of the New Civil Code; Jaime Ang vs. Court of Appeals and Bruno Soledad, G.R. No. 177874, September 29, 2008)
The Law on Sales, as stipulated in the New Civil Code of the Philippines, provides a comprehensive framework for transactions involving goods. Among its vital aspects is the assurance of quality, ensuring that buyers receive products that meet reasonable standards. A warranty for quality pertains to the seller’s commitment to deliver goods that conform to certain specified standards. In essence, it assures the buyer that the purchased goods will be free from defects and suitable for their intended purpose. This warranty serves to protect the consumer’s rights and interests, establishing a level of trust between the parties involved in the transaction.
Types of Warranties for Quality of Goods
Warranties by the seller may be express or implied. Art. 1546 of the Civil Code defines express warranty as follows:
ARTICLE 1546. Any affirmation of fact or any promise by the seller relating to the thing is an express warranty if the natural tendency of such affirmation or promise is to induce the buyer to purchase the same, and if the buyer purchases the thing relying thereon. No affirmation of the value of the thing, nor any statement purporting to be a statement of the seller’s opinion only, shall be construed as a warranty, unless the seller made such affirmation or statement as an expert and it was relied upon by the buyer.
On the other hand, an implied warranty is that which the law derives by application or inference from the nature of the transaction or the relative situation or circumstances of the parties, irrespective of any intention of the seller to create it. Among the implied warranty provisions of the Civil Code are: as to the seller’s title (Art. 1548), against hidden defects and encumbrances (Art. 1561), as to fitness or merchantability (Art. 1562), and against eviction (Art. 1548). (Jaime Ang vs. Court of Appeals and Bruno Soledad, G.R. No. 177874, September 29, 2008)
Warranty Against Hidden Defects
The law says:
“ARTICLE 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.” (The New Civil Code of the Philippines)
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. (Philippine Steel Coating Corp. vs. Eduard Quinones, G.R. No. 194533, April 19, 2017)
Warranty as to Fitness or Merchantability
The law says:
“ARTICLE 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.” (The New Civil Code of the Philippines)
Warranty as to Seller’s Title and Warranty Against Eviction
The law says:
“ARTICLE 1548. Eviction shall take place whenever by a final judgment based on a right prior to the sale or an act imputable to the vendor, the vendee is deprived of the whole or of a part of the thing purchased.
The vendor shall answer for the eviction even though nothing has been said in the contract on the subject.
The contracting parties, however, may increase, diminish, or suppress this legal obligation of the vendor.” (The New Civil Code of the Philippines)
In order that a vendor’s liability for eviction may be enforced, the following requisites must concur – a) there must be a final judgment; b) the purchaser has been deprived of the whole or part of the thing sold; c) said deprivation was by virtue of a right prior to the sale made by the vendor; and d) the vendor has been summoned and made co-defendant in the suit for eviction at the instance of the vendee. (Spouses Michael Uy & Bonita Uy vs. Eduardo Ariza, et al., G.R. No. 158730, August 17, 2006)
Read also: On Consumer Products and Services Warranties
Alburo Alburo and Associates Law Offices specializes in business law and labor law consulting. For inquiries regarding taxation and taxpayer’s remedies, you may reach us at info@alburolaw.com, or dial us at (02)7745-4391/0917-5772207.
All rights reserved.