Rights and Obligations of the Buyer in Sales Transactions

Acceptance of delivery and payment of purchase price

The buyer is obligated to accept delivery and to pay the price of the thing sold at the time and place[1] stipulated in the contract.”[2] Except as otherwise agreed upon, the buyer is not required to accept delivery by installments.[3]

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Seller’s warranty in case of eviction

The seller is liable for the eviction of the buyer even if there is no stipulation on the matter in their contract.[1] Notwithstanding, the seller and the buyer may increase, diminish, or suppress this legal obligation of the vendor.[2]

The seller is liable for eviction if the property is sold for nonpayment of taxes due and it is not made known to the buyer before the sale.[3]

The seller (as judgment debtor) is liable for eviction in judicial sales, except if otherwise decreed in the judgment.[4]

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Seller’s obligation to deliver

The seller is obligated to transfer the ownership of and deliver the object of the sale, as well as answer for its warranty.[1]

The buyer acquires ownership of the thing sold from the moment it is delivered to him: (a) through the various modes of delivery, or (b) in any other manner signifying an agreement that the possession is transferred from the vendor to the vendee.[2] Not mere agreements but tradition or delivery transfers the ownership of things (Non nudis pactis sed traditione dominia rerum transferentur).[3]

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Obligations of the Principal in a Contract of Agency

To be bound by obligations contracted by agent

The principal is required to comply with all the obligations which the agent may have contracted within the scope of his authority.[1] The principal cannot set up the ignorance of the agent as to circumstances whereof the principal himself was, or ought to have been, aware.[2]

Unless the principal expressly or tacitly ratifies an ultra vires act of the agent, the principal is not bound to any obligations where the agent has exceeded his powers.[3]

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Snow Mountain Dairy Corporation v. GMA Veterans Force, Inc.

Actual damages are not presumed. The claimant must prove the actual amount of loss with a reasonable degree of certainty premised upon competent proof and on the best evidence obtainable.

G.R. No. 192446, 19 November 2014

Complainant GMA Veterans Force, Inc. filed a Complaint for Damages against defendant Snow Mountain Dairy Corporation. Previously, complainant and defendant entered into a security service agreement whereby. Just after a month, defendant informed complainant that all of the latter’s security personnel would be replaced and all monies due in the contract will be settled. Continue reading here.

Owen Prosper A. Mackay v. Sps. Dana Caswell

If the work of a contractor has defects which destroy or lessen its value or fitness for its ordinary or stipulated use, he may be required to remove the defect or execute another work. If he fails to do so, he shall be liable for the expenses by the employer for the correction of the work.

G.R. No. 183872, 17 November 2014

Complainant Owen Prosper A. Mackay initiated a Complaint for Collection of Sum of Money with Damages against defendants Sps. Dana Caswell and Cerelina Caswell. Previously, defendants engaged the services of complainant and his group who obligated themselves to provide electrical installation service for P250,000.00 in the new home of the spouses. Continue reading here.

Novation

Novation takes place when there is an irreconcilable incompatibility between the old and the new obligations.

There are three ways to constitute novation, namely:

(1) By changing the object or principal conditions;

(2) By substituting the person of the debtor; or

(3) By subrogating a third person in the rights of the creditor.

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