Implied Warranty of Quality Flashcards

1
Q

Applies to

A

new construction.
To those who do it normally, genuinely, and usually. Not someone who built and sold once.

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2
Q

Common Law

A

caveat emptor if there was no express condition

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3
Q

Modern Law

A

Implies a duty to perform a workman like manner in accordance with accepted standard

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4
Q

Public Policy

A

to protect purchases of home from latent defects

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5
Q

Is implied warranty of quality waivable?

A

yes

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6
Q

Subsequent Purchaser can get warranty but only for:

A

i. Latent defects – obvious later
ii. Discovered within a reasonable time
iii. That cause substantial economic harm

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7
Q

Remedies for Breach of the Sales Contract:

A
  1. Specific Performance
  2. Damages
  3. Recission and retention of deposit
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8
Q

Remedy of Specific Performance

A

Because property is unique and damages are inadequate.

Exception – modern trend for condos.

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9
Q

Remedy of Damages

A

Seller: K – FMV at the time of breach
English rule does not give expectation damages
American does

Buyer: FMV at time of breach – K

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10
Q

Remedy of Recession and Retention of Deposit

A
  1. The seller may elect to rescind the deal and retain the down payment.
  2. Liens - buyer may enforce a lien on the property
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