SUMMARY NOTES ON CHAPTER 6: ACTIONS FOR BREACH OF CONTRACT OF SALE OF
GOODS
Art. 1594 notice of the buyer’s repudiation or
Goods countermand
includes all chattels personal but not (b) The profit he would have realized if the
things in action or money of legal
tender in the Philippines
includes growing fruits or crops
NOTE: This chapter is not applicable to sale
of immovable property. sale had been fully performed
Art. 1595 : the seller may maintain an Countermand
action against the buyer for the price of the contradictory command that overrides
or annuls a previous one
an action that has the effect of voiding
something previously ordered
(revocation)
Art. 1597 : applies when there has been no
delivery of goods yet
The seller may totally rescind the
contract of sale
(1) The buyer has repudiated the contract of
sale
(2) The buyer has manifested his inability to
perform his obligations thereunder
(3) The buyer has committed a breach of the
contract of sale
goods
NOTE: The rescission requires giving notice
Art. 1596 : the seller may maintain an to the buyer.
action against the buyer for damages
Art. 1598
Specific Performance
the rendering of a promised
performance through a judgment or
decree
Damages
a court-ordered remedy that requires
money claimed by, or ordered to be
precise ful-fillment of a legal or
paid to, a person as compensation for
contractual obligation when monetary
loss or injury
damages are inappropriate or inade-
quate, as when the sale of real estate
Measure of damages
or a rare article is involved
estimated loss directly and naturally
resulting in ordinary course of events
NOTE: The seller committed a breach of
from the buyer’s breach of contract
contract by not delivering the specific goods
to the buyer. The buyer applies with the
Measure of damages where there is an
court for specific performance to compel the
available market for the goods
seller to deliver the specific goods. There
the difference between the contract
must be an order from the court for the
price and the market or current price
specific performance.
at the time or times when the goods
ought to have been accepted
Art. 1599
if no time was fixed for acceptance,
Remedies of the buyer in case of breach
then at the time of the refusal to
of warranty by the seller
accept
(1) Accept or keep the goods and set up
against the seller, the breach of warranty
Measure of damages for repudiation or
by way of recoupment in diminution or
countermand
extinction of the price
(a) The labor performed and expenses
incurred for mate-rials before receiving
SUMMARY NOTES ON CHAPTER 6: ACTIONS FOR BREACH OF CONTRACT OF SALE OF
GOODS
(2) Accept or keep the goods and maintain an
action against the seller for damages for
the breach of warranty
(3) Refuse to accept the goods, and maintain
an action against the seller for damages
for the breach of warranty
(4) Rescind the contract of sale and refuse
to receive the goods or if the goods have
already been received, return them or
offer to return them to the seller and
recover the price or any part thereof
which has been paid
Alternative Remedies
when the buyer has claimed and been
granted a remedy in anyone of these
ways, no other remedy can thereafter
be granted, without prejudice to the
provision of the second paragraph of
Article 1191
Measure of Damages
in the case of breach of warranty of
quality, such loss, in the absence of
special circumstances showing
proximate damage of a greater
amount
the difference between the value of
the goods at the time of delivery to
the buyer and the value they would
have had if they had answered to the
war-ranty
