Sellers Liability Explained

Summary

In the scenario, the seller (S) is liable for hidden defects in the car sold to the buyer (B), even if unaware, under Philippine law. The buyer can seek a return of the price and expenses. In breach of warranty cases, rescinding the sale while retaining goods is not a remedy. For chattel mortgages, once foreclosed, no deficiency can be claimed. Oral land sales are invalid under the Statute of Frauds. In contracts, if consideration is unclear, its barter if the non-monetary value exceeds money. Ownership transfers only after full payment, and partial loss at contract perfection doesnt void the contract.

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*. The following are the alternative remedies available to the buyer in case of breach of warranty by the seller. Which is the exception? a. Keep the goods and ask for damages. b. Refuse to accept the goods and ask for damages. c. Rescind the sale and retain the goods. d. Keep the goods and set up against the seller by way of recoupment in price. *. B bought a refrigerator on installment from S and to secure his indebtedness. B executed a chattel mortgage on the refrigerator in favor of S. Upon default by B on his two (*) payments, the refrigerator was foreclosed and sold for P8,* which was less than the balance of P10,* due to S. How much can S still collect from B? a. P2,* c. P10,* b. P8,* d. Nothing
For question *, the exception is:
c. Rescind the sale and retain the goods.
This is generally not an available remedy as rescinding the sale usually requires returning the goods.
For question *, the answer is:
d. Nothing
Under Philippine law, once the chattel mortgage is foreclosed, the deficiency cannot be claimed from the debtor.
*. S entered into a contract with B whereby S sold his land orally to B. The land has been delivered and the money has been paid. Is the oral sale of the land valid? a. The contract is not valid because it was not in writing, as required by the Statute of Frauds. b. The contract is not valid because the contract was not made in a public instrument. c. The contract is unenforceable. d. The contract is valid because the contract was already perfected and executed. *. Statement No. *: The sale of a mere hope or expectancy is conditioned that the thing will into existence. Statement No. *: The vendor need not be the owner at the time the sale is perfected. It is sufficient that he is the owner at the time the thing sold is delivered. a. Both are true. c. No. * is true, No. * is false. b. Both are false. d. No.* is false, No. * is true.
For Question *, the correct answer is:
a. The contract is not valid because it was not in writing, as required by the Statute of Frauds.
For Question *:
a. Both are true.
If you need further clarification on these topics, feel free to ask!
*. Statement No. *: If the consideration of the contract consists partly in money and partly in another thing, and the intention of the parties is not clear, it shall be considered a barter if the value of the thing given as a part of the consideration exceeds the amount of money or its equivalent. Statement No.*: Emptio rei speratae is the sale of thing which is expected to come into existence, the quality and quantity of which are unknown. a. Both are true. c. No. * is true, No. * is false. b. Both are false. d. No.* is false, No. * is true. *. Statement No. *: The ownership in the thing shall not pass to the purchaser until he has fully paid the price. Statement No. *: If at the time the contract of the sale is perfected, the thing which is the object of the contract has been partially lost, the contract shall be without effect. a. Both are true. c. No. * is true, No. * is false. b. Both are false. d. No.* is false, No. * is true.
Case Rating: *
For questions * and *:
*.
- Statement No. * is true.
- Statement No. * is false.
Correct answer: c. No. * is true, No. * is false.
*.
- Statement No. * is true.
- Statement No. * is false.
Correct answer: c. No. * is true, No. * is false.
If you have further questions or need clarification, feel free to ask!