Explanation of Article 332
The article clarified the fourth case in which the buyer can revert to the seller for warranty of entitlement, which is when the buyer informs the seller of the entitlement claim in a timely manner but the seller does not intervene; then the buyer acknowledges the claimant's right in good faith or reconciles with him in good faith without waiting for the judicial ruling. In this case, the buyer has the right to revert to the seller for the warranty because he has fulfilled his obligation, and because the seller's refusal to intervene is an indication that the claimant is justified in his claim. However, the seller can prevent the buyer from reverting to him for the warranty if he proves that the claimant was not justified in his claim and that the buyer hastened in acknowledging or reconciling. The seller can also prevent the buyer from reverting to him if he proves that the buyer was not acting in good faith in his acknowledgment or reconciliation.
The reason for the mitigation of what the seller can argue to relieve himself from the warranty compared to the second case explained in the previous article (331), even though in both cases the buyer informed the seller in a timely manner and he did not intervene, is that in that case, the buyer did everything in his power; thus, he is not responsible for the issuance of the entitlement judgment unless the seller proves the buyer's deception or gross error. Whereas if the entitlement is established by the buyer's acknowledgment or reconciliation, he bears the responsibility for this acknowledgment or reconciliation; so if he was not justified in what he did, as the seller proves that the claimant was not justified in his claim, the buyer loses his right to revert.
Related To
Article 332
A buyer’s right of recourse under the warranty of title shall not be affected if he, in good faith, either acknowledges a third party’s claim of ownership or settles the claim prior to a court judgment, provided that he notifies the seller of the claim in a timely manner and the seller fails to join in the lawsuit, unless the seller proves that the plaintiff’s claim is without merit.