Implied Warranty of Quality Flashcards
Applies to
new construction.
To those who do it normally, genuinely, and usually. Not someone who built and sold once.
Common Law
caveat emptor if there was no express condition
Modern Law
Implies a duty to perform a workman like manner in accordance with accepted standard
Public Policy
to protect purchases of home from latent defects
Is implied warranty of quality waivable?
yes
Subsequent Purchaser can get warranty but only for:
i. Latent defects – obvious later
ii. Discovered within a reasonable time
iii. That cause substantial economic harm
Remedies for Breach of the Sales Contract:
- Specific Performance
- Damages
- Recission and retention of deposit
Remedy of Specific Performance
Because property is unique and damages are inadequate.
Exception – modern trend for condos.
Remedy of Damages
Seller: K – FMV at the time of breach
English rule does not give expectation damages
American does
Buyer: FMV at time of breach – K
Remedy of Recession and Retention of Deposit
- The seller may elect to rescind the deal and retain the down payment.
- Liens - buyer may enforce a lien on the property