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 Even an "as is" purchase could be rescinded if it could be shown the seller knew of the flaw.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 ?
DJ, Doha Answer: According to Article 604 of the civil law, where a latent defect is found in the leased property, which the landlord knew or should have known about upon a reasonable inspection, the tenant may demand that the defect be repaired by the landlord or he may repair such defect personally at the cost of the landlord.
With regards construction permits, the World Bank said there was improvement in the construction sector's risk management practices, 'with latent defect liability insurance now commonly obtained by industry players' to make it safer.
(30) However, the latent defect exception to caveat emptor became blurred when courts began characterizing psychologically stigmatized property as a material fact due to its hidden nature, despite the purported defect having no bearing on the structural integrity of a residential property.
The defence argues that the Ferrari had a latent defect that caused it to accelerate uncontrollably but the prosecution say the accident was caused by driver error.
Mr Wilkins added: "His defence is that nothing he did caused the crash, rather it was due to some latent defect with the vehicle."
Reportedly, this lawsuit had alleged that several models of Dometic's gas absorption refrigerators contained a latent defect. The court closed the case following the entry of the order.
The company denied coverage, citing the latent defect exclusion.
By finding a clear and unambiguous policy term to contain a "latent" ambiguity, it provided a $400,000 windfall and allowed her to recover more than allowed by the clear language of the policy by finding a latent defect, even though the court found the policy language "on its face, that language could not be any clearer" and yet changed the meaning to provide more to the claimant than she was entitled to receive.
Similarly, an unusually high concentration of PCBs in household air or dust would likely need to be disclosed by a landlord to potential tenants as a latent defect or need to be cleaned up as a potential violation of the IWH.
Figure 1, Latent Defect Cost Escalation, compiled from this NASA study illustrates the relative cost escalation of correcting an out-of-phase defect.
A latent defect causing water damage may involve freezing pipes due to inadequate insulation, which isn't easily noted once walls are enclosed.
If the drains are undersized or clogged, then a seemingly typical rain event can uncover a latent defect.