Text of the provision
Art. 1628. The vendor in good faith shall be responsible for the existence and legality of the credit at the time of the sale, unless it should have been sold as doubtful; but not for the solvency of the debtor, unless it has been so expressly stipulated or unless the insolvency was prior to the sale and of common knowledge. Even in these cases he shall only be liable for the price received and for the expenses specified in No. 1 of article 1616. The vendor in bad faith shall always be answerable for the payment of all expenses, and for damages.
(1529)
Civil Code of the Philippines, Republic Act No. 386, approved June 18, 1949, effective August 30, 1950. Reproduced in full; verified verbatim against the LawPhil and ChanRobles official-text renderings.
What this article means
The good-faith assignor warrants the existence and legality of the credit, but not the debtor's solvency unless expressly stipulated or the insolvency was prior and of common knowledge. A bad-faith assignor always answers for expenses and damages.
Related provisions
- Article 1627 — Assignment Includes Accessory Rights.
- Article 1629 — Duration of Warranty of Solvency.
Cases citing this article
- Fort Bonifacio Development Corporation vs. Manuel M. Domingo, G.R. No. 218341, December 7, 2022 — read the decision on LawPhil →
- Luis Juan L. Virata and UEM-Mara Philippines Corporation vs. Alejandro Ng Wee Westmont Investment Corp., et al./Westmont Investment, Corporation vs. Alejandro Ng Wee/Manuel Estrella vs. Alejandro Ng Wee/Simeon Cua, et al. vs. Alejandro Ng Wee/Anthony T. Reyes vs. Alejandro Ng Wee, et al, G.R. No. 220926 / G.R. No. 221058 / G.R. No. 221109 / G.R. No. 221135 / G.R. No. 221218, July 5, 2017 — read the decision on LawPhil →
- Fort Bonifacio Development Corporation vs Valentin Fong, G.R. No. 209370, March 25, 2015 — read the decision on LawPhil →
- Sonny Lo vs. KJS ECO-Formwork System Phil., Inc, G.R. No. 149420, October 8, 2003 — read the decision on LawPhil →
Compiled automatically from Supreme Court decisions published on LawPhil that expressly cite this article, most frequently cited first. A listing means the decision cites the provision — it is not a statement that the case is the leading authority, and it does not show whether a ruling has since been modified or abandoned. Always read the decision itself.