In every sale, the law implies a warranty against hidden defects of the thing sold. The seller is responsible for hidden defects which render the thing unfit for the use for which it is intended, or which so diminish its fitness that the buyer would not have bought it, or would have paid a lower price, had they known of them. For the warranty to apply, the defect must be: hidden (not visible, or not one the buyer, being an expert, should have known); important (serious enough to affect use or value); existing at the time of the sale; and the action must be brought within the prescribed period. The seller is liable even if they were unaware of the hidden defect, unless the parties validly stipulated otherwise; but a seller who knew of the defect and did not disclose it is liable for damages as well. The buyer has two alternative remedies (the redhibitory actions): to withdraw from the contract (accion redhibitoria), returning the thing and recovering the price with expenses; or to demand a proportionate reduction of the price (accion quanti minoris), keeping the thing but paying less. These actions must be filed within six months from the delivery of the thing. This warranty is distinct from an express warranty or a manufacturer's guarantee, and it protects buyers from latent defects they could not have discovered.
The Implied Warranty
Every sale implies a warranty against hidden defects — the seller is liable for hidden defects that render the thing unfit or so reduce its fitness that the buyer would not have bought it, or paid less, had they known.
The Requisites
- The defect is hidden (not visible);
- It is important (affects use or value);
- It existed at the time of sale; and
- The action is filed on time.
The Buyer's Remedies
Two alternatives: withdraw from the sale (accion redhibitoria), returning the thing for the price and expenses; or demand a price reduction (accion quanti minoris). File within six months from delivery. A seller who knew and hid the defect also pays damages.
Practical Takeaways
- The seller is liable for hidden defects, even if unaware;
- Remedies: rescind or get a price reduction;
- File within six months from delivery.
Frequently Asked Questions
What is the warranty against hidden defects? An implied warranty in every sale making the seller liable for hidden defects that render the thing unfit for its intended use, or so reduce its fitness that the buyer would not have bought it or would have paid less.
What are the buyer's remedies for a hidden defect? Two alternatives: withdraw from the contract (accion redhibitoria), returning the thing and recovering the price with expenses, or demand a proportionate reduction of the price (accion quanti minoris).
Is the seller liable even if unaware of the defect? Yes. The seller is liable even without knowledge of the hidden defect, unless the parties validly stipulated otherwise. A seller who knew and did not disclose is also liable for damages.
How long do I have to sue for a hidden defect? The redhibitory actions must be filed within six months from the delivery of the thing sold.
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 you have questions about your rights or options under Philippine law, our firm is available to assist. 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.