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Week 7 - Obligations of the Vendor - D. - Coggle Diagram
Week 7 - Obligations of the Vendor - D.
D. Risk of Loss
1. General Rule
- In an Obligation to deliver a generic thing, the loss or destruction of anything of the same kind does not extinguish the obligation. (1263)
2. Loss Before Perfection
- Loss must be born by the seller. Sale being an obligation to deliver a specific thing, the loss of which extinguishes the obligation under Art. 1262 (Roman v. Grimalt)
3. Loss at the Time of Perfection
- Refers to either sale of specific things or sale of goods. (1493-1494)
4. Loss After Perfection but Before Delivery
- General rules in 1189 shall be observed pursuant to Art. 1538 (1480 in rel to 1163-1165) + (1189 & 1262)
a. General Rule
- Risk of loss is shifted to the buyer as an exception to the general rule of res perit domino. (1480)
Res Perit Domino - The thing perishes with the owner.
b. Loss by fault of a Party
- If loss without fault of the vendor, obligation is extinguished.
Loss With Fault
- Vendor obliged to pay the damages.
c. Loss by Fortuitous Events
- General Rule, loss at the risk of the seller until transfer of ownership to the buyer.
d. Fruits or Improvements
- Vendor bound to deliver the thing sold + accessions and accessories in the condition in which they were upon the perfection of the contract. All fruits shall pertain to the vendee from the day of perfection.(1537)
Exception
- Express stipulation. OR delay in delivery due to fault of one party. At which point, goods are at the risk of the party at fault. (1504)
Deterioration
- if without fault of the vendor, impairment borne by the buyer. If with fault of the vendor, buyer has option of either specific performance or rescisison with damages in either case.
Improvement
- Inures to the benefit of the buyer. If improved at the expense of the vendor, no other right other than that granted to a usufructuary.
Rights of the Buyer
Fruits -
Buyer has right to the fruits from the time the obligation to deliver the thing arises. But, no real right over the same until actual delivery. (1164)
5. Loss After Delivery
- The buyer bears the risk as the ownership has already transferred to them due to the delivery. (1504)
Should fungible things be sold for a price fixed according to weight, number, or measure, the risk shall not be imputed to the vendee until they have been weighed, counted, or measured and delivered, unless the latter has incurred in delay. 1480
General Rule -
If lost entirely, contract shall be without any effect. This means that the contract is void for being no object. Thus, no need to bring an action for annulment. (1493)
Partial Loss
- Vendee has the option to withdraw from the contract OR demanding the remaining part, being obliged only to pay the proportionate price.
When Considered Lost
- When it perishes or goes out of commerce or, disappears in such a way that its existence is unknown or cannot be recovered.
When Considered Perished -
Also covers material deterioration that deprives a thing of its former utility, taking into consideration the time the contract was entered into.
Specific Things -
Specific Goods
- goods identified and agreed upon at the time a contract of sale is made. (1636)
Sale
- An obligation which consists in the delivery of a determinate thing shall be extinguished if it should be lost or destroyed without the fault of the debtor, and before he has incurred in delay. (1262)
Res Spirit Domino
- The thing perishes with the owner. Risk of loss born by the owner.