- Statute
- Civil Code
- Article
- Art. 1547
- Topic
- Obligations of the Vendor
- Status
- In force
- Book
- BOOK IV Obligations and Contracts
- Title
- TITLE VI SALES
- Chapter
- CHAPTER 4 Obligations of the Vendor
- Year
- 1949
- Cited by
- Multiple Supreme Court decisions
The provision
In a contract of sale, unless a contrary intention appears, there is: (1) An implied warranty on the part of the seller that he has a right to sell the thing at the time when the ownership is to pass, and that the buyer shall from that time have and enjoy the legal and peaceful possession of the thing; (2) An implied warranty that the thing shall be free from any hidden faults or defects, or any charge or encumbrance not declared or known to the buyer. This article shall not, however, be held to render liable 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. (n)
Intellegal Wiki · In plain terms
In a sale, unless the contract states otherwise, the seller gives two implied warranties: that he has the right to sell and the buyer will enjoy peaceful legal possession, and that the thing is free from hidden defects or undisclosed encumbrances. These do not bind a sheriff, auctioneer, mortgagee, pledgee, or others selling merely by authority over a thing in which a third person has an interest.
An editorially maintained plain-language explanation of this provision — not legal advice.
Intellegal Wiki · How the courts apply it
In Supercars Management & Development Corporation v. The Late Filemon Flores, the Supreme Court held: Affirmed Flores' right to rescind the sale for hidden defects under Articles 1547, 1561, 1566, and 1599, deleting the damages awards but maintaining the P70,974.80 refund with interest.
One leading Supreme Court case applying this provision.
Cases applying this article
- Estelita Villamar v. Balbino Mangaoil G.R. No. 188661
- Angela Joaquin y Patricio v. Inocencio Aragon G.R. No. 1239
- Paciencia A. Daleon v. Ma. Catalina P. Tan G.R. No. 186094
- Supercars Management & Development Corporation v. The Late Filemon Flores G.R. No. 148173
- Bignay Ex-Im Philippines v. Union Bank of the Philippines G.R. No. 171590
- Bignay Ex-Im Philippines v. Union Bank of the Philippines G.R. No. 171590171598