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latent defect

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latent defect n. a hidden flaw, weakness or imperfection in an article which a seller knows about, but the buyer cannot discover by reasonable inspection. It includes a hidden defect in the title to land, such as an incorrect property description. Generally, this entitles the purchaser to get his/her money back (rescind the deal) or get a replacement without a defect on the basis of "implied" warranty of quality that a buyer could expect ("merchantability"). Even an "as is" purchase could be rescinded if it could be shown the seller knew of the flaw. (See: warranty, implied warranty, product liability)



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One key area of the guidance note is the detailed information regarding the growing market for latent defects insurance, which covers inherent defects to the building for a period of time which may occur from the initial construction.
It was accepted that the council could not have been aware of any latent defect beneath the pavement in Northgate, Almondbury, which had remained intact since its construction prior to 1965.
Latent Defects An excellent example concerning a latent defect is the British Columbia Supreme Court's 1979 decision in Allen et al.
 
 
 
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