4/16/2015

LatentdefectWikipedia,thefreeencyclopedia

Latentdefect
FromWikipedia,thefreeencyclopedia

Inthelawofthesaleofproperty(bothrealestateandpersonalpropertyorchattels)alatentdefectisafault
inthepropertythatcouldnothavebeendiscoveredbyareasonablythoroughinspectionbeforethesale.
Thegenerallawofthesaleofpropertyiscaveatemptor(letthebuyerbeware)andbuyersareundera
generaldutytoinspecttheirpurchasebeforetakingpossession.However,itisunderstoodatlawthat
inspectionisoftennotsufficienttodetectcertaindeficienciesintheproductthatcanonlybediscovered
throughdestructivetestingorothermeansthatasellercouldnotreasonablybeexpectedtoallowunder
normalconditions.Forexample,woodbeamsandinteriorbrickworkoftencannotbefullyassessedwithout
destructivetesting,anditwouldbeunreasonableforthesellertoallowthebuyertodestroypartofthe
propertyinordertodiscoversuchdefects.
Assuch,thelawexpectsthatbuyerswillprotectthemselvesinthesalescontractagainstdefectstheycannot
possiblybeexpectedtoassesspriortopurchase.Assuch,theterm"latentdefect"isoftenusedaspartofthe
guaranteeclausesinasalescontractsothatthebuyercanrecoverdamagesfromthesellerifdefectsturnup
inthepropertyafterthesale.Forexample,thesellermayberequiredtopayforrepairsofanysuchdamage.
Thereisnoautomaticrightforabuyertoclaimagainstasellerforsuchlatentdefectswhentheyare
discovered,absentanagreementincontract.However,ifalatentdefectisdiscovered,thereisoftena
presumptionagainstthesellerwhenaclaimismadeinmisrepresentationthatthesellerknewaboutthe
latentdefect.Assuch,thesellerisrequiredtoshowthatheorshecouldnotpossiblyhaveknownofthe
defect,ratherthanthebuyerhavingtoshowthatthesellerdidknowaboutthedefect.However,ifitcanbe
shownthesellercouldnothaveknownaboutthedefect(andwasnotwilfullyblindtothepossibility)then
thebuyer'sclaimwillnotsucceed.
However,whenthedefectcouldhavebeendiscoveredbythebuyerbyathoroughinspection(a"patent
defect"),thebuyercannotpossiblysucceedinaclaimagainstthesellerunlesstheselleractivelytooksteps
tohidethedefectfromanormalinspection.
Inallcases,whereaselleractivelymisrepresentstheconditionoftheproperty,suchasbytakingstepsto
makeaninspectionimpossibleorbylyingaboutproblemswhendirectlyasked,thebuyerwillalmost
alwayssucceedunlessitcanbeshownthatthebuyerwasindependentlyawareofthedefectandcompleted
thetransactionnevertheless.
Inconstructioncontractingalatentdefectisdefinedasadefectwhichexistsatthetimeofacceptancebut
cannotbediscoveredbyareasonableinspection.[1]

References
1. http://www.acquisition.gov/far/97/pdf/46.pdfFAR46.102definition

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