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 Even an "as is" purchase could be rescinded if it could be shown the seller knew of the flaw.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)

References in periodicals archive ?
Tenders are invited for the midlands prison has a latent defect in the design structure of the cell windows.
Figure 1, Latent Defect Cost Escalation, compiled from this NASA study illustrates the relative cost escalation of correcting an out-of-phase defect.
The event is an unusual one in that although taxpayers typically own or buy one or more houses during their lifetime for personal, investment, or business use, the purchase of a property that unbeknownst to the buyer has a latent defect that severely devalues the property and renders it virtually uninhabitable is an unusual and nonrecurring act.
But if stopped for many years, high temperatures could cause a latent defect.
The afternoon's agenda featured James Portelli, IRM UAE Coordinator and Executive VP/Head of Risk at the Oman Insurance Company speaking on project insurance from a buyer's perspective, which covered potential liabilities under a construction contract, construction insurance policy, cover and exclusions as well as professional indemnity and latent defect cover.
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.
At worst, it results in a product that leaves the factory with a latent defect destined to fail in service.
An excellent example concerning a latent defect is the British Columbia Supreme Court's 1979 decision in Allen et al.
Spills caused by oil tank corrosion, rust, decay, deterioration or latent defect are excluded from coverage, according to a letter to the school district from Massamont Insurance Agency of Shrewsbury.
In Northrop Grumman Corporation, (48) the Armed Services Board of Contract Appeals (ASBCA) limited the Navy's recovery on a latent defect theory based on evidentiary issues.
Nonetheless, the potential presence of Vibrio and its serious consequence to some consumers could constitute a latent defect.
Under the majority's opinion and the present state of the law, a subsequent purchaser of a condominium with a latent defect created by a subcontractor and found five years after construction will fall in that category [of the injury without remedy] if the contractor has gone bankrupt or out of business.