Explanation of Article 331
The first paragraph clarified that the claimant of entitlement may file his lawsuit before the buyer receives the sold item against the seller, the buyer, or both; because each of them has a standing in the lawsuit. The seller is the one who holds the item, and the buyer is the apparent owner. However, after the buyer receives the sold item, according to the rules of litigation, the lawsuit is filed against the one with standing, who is the buyer, as he is the possessor and the apparent owner.
The second paragraph clarified that if the entitlement claim is filed against the buyer, whether the sold item is in his possession or not, he must promptly inform the seller of this. The buyer fulfills his obligation of promptness when he informs the seller in a timely manner, allowing him to defend the right he sold. There is no specific form for informing, but the burden of proof lies on the buyer. Informing includes the buyer requesting to involve the seller in the lawsuit. If the seller is informed of the lawsuit, he must intervene, whether the buyer requested his involvement or not, so that the seller fulfills his obligation by making the third party cease their claim or obtaining a court ruling rejecting their claim.
The third and fourth paragraphs, as well as the following article (332), clarified the cases in which the buyer has the right to revert to the seller for the guarantee of entitlement, and what the seller can do to counter this guarantee. The third paragraph clarified two cases where the buyer's right to revert to the seller for the guarantee is established:
The first case: If the seller is informed by the buyer or others of the entitlement claim in a timely manner, the seller intervenes in the lawsuit, and a judgment is issued in favor of the claimant of entitlement.
The second case: If the seller is informed by the buyer or others of the entitlement claim in a timely manner, but he does not intervene, and a judgment is issued in favor of the claimant of entitlement, the judgment is binding on the seller, and the buyer has the right to revert for the guarantee, even if the seller proves that had he intervened, the judgment would not have been in favor of the claimant; because the buyer did his utmost by informing the seller of the entitlement claim and did not concede to the third party's right. The seller cannot counter the buyer's reversion unless he proves that the judgment in favor of the claimant was due to the buyer's deception or gross error.
The judgment of entitlement in this case is binding on the seller for the buyer, but not binding on the seller for the claimant, as long as the claimant did not involve the seller in the lawsuit for the judgment to be issued against him. Therefore, if the seller fails to prove the buyer's deception or gross error and guarantees the entitlement, he may revert to the claimant if he proves that the claimant was not right in the entitlement claim, and the claimant cannot invoke the judgment issued in his favor against the buyer.
The fourth paragraph clarified the third case of the buyer's reversion to the seller for the guarantee of entitlement, which is if the seller is informed of the lawsuit in an untimely manner, and even more so if he is not informed at all, and a judgment of entitlement is issued. If the seller proves that had he intervened in the lawsuit, it would have been dismissed, the buyer's right to revert for the guarantee is forfeited; if not proven, the buyer's right to revert for the guarantee is not forfeited, because the judgment of entitlement will be established for the claimant even if the seller intervenes.
Related To
Article 331
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A claim of ownership over a sold item prior to its delivery may be filed against the seller or the buyer, or both.
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If a claim of ownership over a sold item is filed against the buyer, he shall promptly notify the seller, and the seller shall join in the lawsuit.
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If the seller is notified in a timely manner and joins the lawsuit or fails to do so and, in either case, a judgment is rendered establishing that the sold item is owned by a third party, the seller shall be bound by the warranty of title, unless he establishes that the judgment is a result of an act of deception or gross negligence on the part of the buyer.
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If the buyer fails to notify the seller of the claim in a timely manner and a judgment is issued against the buyer, the buyer’s right of recourse under the warranty of title shall be forfeited if the seller establishes that the claim of ownership would have been dismissed had he joined the lawsuit.