Explanation of Article 330
The article clarified the third obligation of the seller in the contract of sale, which is the warranty against eviction and encumbrance. The eviction that the seller is obliged to guarantee may be issued by the seller or by a third party. The first paragraph clarified that the seller guarantees not to evict the buyer from enjoying the sold item in whole or in part. Eviction here refers to any material or legal act issued by the seller that would deprive the buyer of enjoying the sold item wholly or partially. Material eviction is when the seller does not rely on a claimed right, and it may be a purely material act, such as selling a property and then performing an act that limits the buyer's enjoyment of it, or it may be a material act based on a legal reason, such as selling the item twice. The second sale is considered a material act concerning the first buyer, and the eviction is dual; it is issued by a third party and at the same time by the seller because the third party derived their right from the seller.
Legal eviction is when the seller relies on a claimed right, whether prior to or subsequent to the sale contract, such as claiming a real right in the sold item, or selling something not owned by them and then becoming the owner due to a reason of ownership, thus opposing the buyer with this newly acquired ownership after the sale.
The seller's obligation to guarantee non-eviction is an obligation to refrain from an act, and general rules apply to its breach. The buyer may request specific performance by removing the eviction, which is granted if possible, or request rescission with compensation in both cases. The court may refuse the rescission request if the eviction is not severe.
The second paragraph clarified that the seller guarantees the buyer against the sold item or part of it being claimed by a third party. This means the seller guarantees any eviction issued by a third party against the buyer in the sold item in whole or in part, and any resulting confirmation of the sold item or part of it being claimed by a third party. However, this guarantee, unlike the guarantee against eviction issued by the seller, is restricted by two conditions:
The first condition: The third party's eviction must be based on a legal reason, claiming a right in the sold item. This right may be real, such as claiming ownership of the entire sold item or a common part of it, or a non-common part, or a usufruct right, easement, mortgage, and so on. It may also be a personal right, such as a lease right. If the third party's eviction is a material act without relying on a claimed right in the sold item, such as seizing the item from the buyer by force or theft or preventing them from enjoying it, the seller does not guarantee it.
The second condition: The right claimed by the third party must be prior to the sale contract or derived from the seller even if the time it was derived for the third party was after the sale and the buyer could not obtain the sold item for any reason.
An example of a right prior to the sale contract is if the seller arranged an easement right on the property before the sale without the buyer's knowledge. An example of a right derived for the third party from the seller after the sale is if the law requires a specific procedure for transferring ownership by the sale contract, such as registration, and the seller sold the sold item to a second buyer who then promptly registered it before the first buyer. In this case, ownership is established for the second buyer, and the first buyer has a guarantee against the seller.
If the right claimed by the third party is subsequent to the sale contract and not derived from the seller, the seller does not guarantee it.
The seller's guarantee against the sold item not being claimed means the buyer can demand the seller perform specific performance by intervening in the claim of encumbrance filed by the third party to stop their eviction of the buyer. This is the guarantee against eviction. If specific performance is impossible because the third party is awarded the claimed right, the seller must fulfill their obligation through compensation by compensating the buyer for the damage caused by the encumbrance of the sold item. This is the guarantee of encumbrance, which will be detailed in the following articles.
The guarantee against eviction is only required of the seller if the eviction actually occurs, not merely if it is possible. Similarly, the guarantee of encumbrance is only required if the encumbrance is proven, not merely claimed. However, if the buyer has not paid the price and an encumbrance claim is filed against them, they have the right to withhold the price according to what is stipulated in Article (349).
Related To
Article 330
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The seller shall warrant the buyer against any infringement on his part against all or part of the sold item.
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The seller shall warrant that all or part of the sold item is free from any thirdparty rights if such rights were established prior to the conclusion of the sale contract or devolved to a third party from the seller.