Explanation of Article 335
The article clarified the elements of compensation that the buyer can claim from the seller in the event of total entitlement of the sold item if the entitled party does not approve the sale. The system has detailed these compensation elements in this specific text and did not leave them to general rules due to the special nature of this guarantee. These elements are:
A- The sale price; because it is evident through entitlement that the buyer paid the price for a sale that did not result in the transfer of ownership to him; thus, the seller received what he was not entitled to, and he must return it. The system does not require the value of the sold item at the time of entitlement because it is established through entitlement that the sold item was not in the buyer's ownership to compensate for its value then, as ownership is negated since the inception of the sale.
B- The fruits that the buyer is obliged to return to the entitled party according to what is stipulated in Article (676). The buyer, as a possessor of the sold item who is not the owner, is obliged to return the fruits of the sold item to the entitled party from the time the entitlement claim is raised. If he was aware of the entitlement before the claim was raised, he is also obliged to return the fruits from the time of his knowledge. The buyer can claim from the seller what he was obliged to return to the entitled party from these fruits.
C- Beneficial expenses, such as construction and planting that the buyer made in the sold item, which the entitled party is not obliged to compensate the buyer for, according to the second paragraph of Article (677). The entitled party, as the owner, is obliged to compensate the buyer who made constructions or plantings by paying the lesser of the two values: the expenses incurred by the buyer and the amount by which the value of the land increased. If the increase in the land's value is less than the expenses incurred by the buyer, he recovers from the entitled party the amount of the increase in the land's value and claims the difference from the seller.
As for necessary expenses such as essential repairs, the buyer cannot claim these from the seller because he can claim them from the entitled party according to the first paragraph of Article (677).
D- Luxurious expenses, such as painting, decoration, and similar improvement expenses; the buyer cannot claim these from the entitled party, nor can he claim them from the seller if the seller acted in good faith. In contractual liability, the debtor, who is the seller here, is not responsible for unforeseen damages unless he committed fraud or gross negligence. These expenses fall under that category, so the buyer cannot claim them from the seller unless the seller acted in bad faith, knowing of another's right.
E- Any other damages suffered by the buyer due to entitlement; he has the right to claim them from the seller. This includes any loss suffered by the buyer or profit missed as a direct result of the entitlement. This indicates that the first four elements are the minimum compensation the buyer can claim from the seller. If there is a reason for compensation other than what is mentioned, he can claim it, such as the expenses of the entitlement claim and the guarantee claim, as well as the sale expenses, which, although included in the first item, i.e., the price implicitly, this item includes them in general terms.
In this element, it should be considered whether the seller acted in good faith, in which case he is only responsible for foreseeable damages. However, if he acted in bad faith, he is responsible even for unforeseen damages, which may include the increase in the value of the sold item at the time of entitlement over the price compensated to the buyer if its loss resulted in damage according to compensation rules.
It is worth noting that the entitlement guarantee claim differs from the buyer's claim to annul the sale under the provisions of selling another's property or his claim to rescind it for the seller's failure to fulfill his obligation to transfer ownership of the sold item. The rules established for those claims apply to them in their respective contexts, whether in terms of conditions, limitation, compensation, or otherwise, while the entitlement guarantee claim does not establish the guarantee until entitlement is proven, and the limitation period begins from the proof of entitlement. The system has detailed the amount of compensation in it.
Related To
Article 335
If it is established that the entire sold item is owned by a third party and such party does not ratify the sale, the buyer may demand the following from the seller:
a) The amount paid for the sold item.
b) The value of the yields that the buyer is required to reimburse the party claiming ownership.
c) Expenses incurred by the buyer for the benefit of the sold item for which the party claiming ownership is not required to compensate the buyer.
d) Luxurious expenses if the seller acted in bad faith.
e) Compensation for any other harm arising from the establishment of ownership.