Under the Civil Code, a seller warrants against hidden defects that render the thing sold unfit for its intended use, or that so diminish its fitness that the buyer would not have bought it, or would have paid less, had they known. The defect must be hidden, serious, and existing at the time of sale. The buyer may either rescind the sale and recover expenses, or keep the thing and demand a proportionate reduction of the price. This action must generally be brought within six months from delivery, and a seller who knew of the defect and concealed it cannot hide behind a waiver.
You buy a second-hand car, a house, or equipment, and weeks later a serious flaw surfaces that you could not have seen. Are you stuck with it? Philippine law answers with the warranty against hidden defects, a protection built into every sale — but one hedged by a short deadline that catches many buyers off guard.
What the Warranty Covers
The Civil Code makes the seller responsible for hidden defects in the thing sold. For a defect to be redhibitory — the kind the warranty covers — four things must be true:
- The defect is hidden — not visible, and not something the buyer, if not an expert, should have discovered from an ordinary examination;
- It is serious — it renders the thing unfit for the use for which it was intended, or diminishes its fitness such that the buyer would not have bought it, or would have paid a lower price, had they known;
- It existed at the time of the sale; and
- The buyer was not aware of it (and is not an expert who, by reason of their trade, should have known).
Defects that are patent — visible or obvious on inspection — are not covered; the buyer is expected to see those.
The Buyer’s Two Remedies
When a hidden defect appears, the buyer may choose between:
- Accion redhibitoria — withdraw from the contract (rescind the sale), returning the thing and recovering the price plus expenses of the sale; and
- Accion quanti minoris (estimatoria) — keep the thing but demand a proportionate reduction of the price.
If the seller knew of the hidden defect and did not disclose it, the buyer may also recover damages; if the seller was in good faith and unaware, liability is more limited but the core remedies remain.
The Trap: A Six-Month Deadline
This is where buyers lose otherwise valid claims. The action arising from hidden defects must generally be brought within six (6) months from the delivery of the thing sold. Six months is short, and it runs from delivery, not from discovery. A buyer who waits, hoping the problem resolves or negotiating informally, can find the claim time-barred. Act quickly — document the defect and assert the remedy in writing without delay.
“As Is, Where Is” and Waivers
Sellers often insert an “as-is, where-is” clause or a waiver of warranties. Such clauses can be effective for patent defects and where the parties genuinely allocate the risk. But there is a firm limit: a seller who is aware of a hidden defect and conceals it acts in bad faith, and a stipulation exempting the seller from the warranty is void as to defects the seller knew about and hid. In short, a waiver cannot launder a concealed, known defect.
Practical Guidance
- Inspect thoroughly before buying, because patent defects are your responsibility; where possible, have an expert examine big-ticket items.
- If a hidden defect surfaces, notify the seller in writing immediately and preserve evidence (photos, mechanic’s or engineer’s reports).
- Decide early between rescission and a price reduction, and file within the six-month window.
Frequently Asked Questions
What is a hidden defect the seller is liable for? A defect that is hidden, serious, and existing at the time of sale, which renders the thing unfit for its intended use or so reduces its fitness that the buyer would not have bought it, or would have paid less, had they known. Patent, visible defects are not covered.
What can I do if I discover a hidden defect after buying? You may rescind the sale and recover the price and expenses, or keep the thing and demand a proportionate reduction of the price. If the seller knew of and concealed the defect, you may also claim damages.
How long do I have to complain about a hidden defect? Generally six months from the delivery of the thing sold. This period is short and runs from delivery, not discovery, so assert your remedy in writing without delay.
Does an as-is-where-is clause protect the seller from everything? No. It can cover patent defects and genuine risk allocation, but a seller who knew of a hidden defect and concealed it acts in bad faith, and a waiver is void as to defects the seller knew about and hid.
This commentary is for general informational purposes only and does not constitute legal advice. For guidance specific to your situation, please consult a licensed attorney.
If a purchase turned out to have a serious hidden flaw, act fast, the six-month clock is unforgiving, and our firm can help. You may reach us via Viber or WhatsApp, call us at 0995 433 5550, or send an email to vivasnobles@gmail.com. We look forward to hearing from you.