Civil Transactions
Effects of a Sales Contract: Obligations of the Seller and Buyer
Under the Civil Transactions Law, a sale contract results in the transfer of ownership of the sold item to the buyer and gives rise to reciprocal obligations on both parties, as follows:
First: Obligations of the Seller
1. The seller shall take all necessary actions within his capacity to transfer ownership of the sold item to the buyer and shall refrain from any action that would render such transfer impossible or difficult.
2. The seller shall deliver the sold item to the buyer in the condition in which it was at the time of the sale. The seller shall bear the costs of delivery, unless otherwise agreed.
3. The seller shall deliver the sold item free from any third-party right of which the buyer is unaware. Delivery of the sold item shall include its appurtenances, anything permanently attached thereto, and anything customarily regarded as an accessory to the sold item, even if not expressly mentioned in the contract.
4. The seller warrants that he shall not interfere with the buyer’s enjoyment or use of all or part of the sold item.
5. The seller warrants that the sold item is free from any third-party right affecting all or part thereof, where such right existed prior to the conclusion of the sale contract or was transferred to the third party by the seller.
6. Upon delivery of the sold item, the seller warrants that it is free from any defect that diminishes its value or utility in accordance with its intended purpose. The seller shall be liable for such defect even if he was unaware of its existence.
Second: Obligations of the Buyer
1. The buyer shall pay the price of the sold item before taking delivery thereof, unless otherwise agreed.
2. The buyer shall take delivery of the sold item at the place where it is located at the time of the sale and shall transport it without delay, allowing for the time reasonably required for transportation, unless otherwise agreed.
3. The buyer shall bear the costs of payment of the price, taking delivery of the sold item, and concluding and registering the sale contract, unless otherwise agreed.
4. If an action for entitlement to the sold item is brought against the buyer, the buyer shall promptly notify the seller.
5. Upon taking delivery of the sold item, the buyer shall inspect its condition as soon as he is able to do so in accordance with customary practice. If he discovers a defect for which the seller is liable, he shall notify the seller within a reasonable period. If the defect could not be discovered by ordinary inspection and is later discovered by the buyer, he shall notify the seller as soon as it becomes apparent.
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