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In construction contracting, a latent defect is defined as a defect which exists at the time of acceptance but cannot be discovered by a reasonable inspection. [2]In the 1864 US case of Dermott v Jones, the latent defect lay in the soil on which a property had been built, giving rise to problems which subsequently made the house "uninhabitable and dangerous".
Under French law (Article L241-1 of the Insurance Code), every builder is required to purchase a ten-year insurance policy covering the mandatory decennial warranty on all construction projects. The decennial warranty is a legal liability assumed by builders for all defects that compromise the integrity of their structures or that cause them to ...
Under the principle of caveat emptor, the buyer could not recover damages from the seller for defects on the property that rendered the property unfit for ordinary purposes. The only exception was if the seller actively concealed latent defects or otherwise made material misrepresentations amounting to fraud .
Bryan v Maloney (1995), [14] in which the purchaser of a home was entitled to compensation from the builder for latent defects. Because compensation for the defects would have been recoverable by the landowner who originally engaged the builder, the subsequent purchaser enjoyed similar rights.
The judge derived his "absolute warranty" from section 14 (1) of the Sale of Goods Act 1893 about reasonable fitness for the purpose. I agree that the warranty in section 14 (1) is absolute in this sense: if the goods are unfit owing to a latent defect, which could not be discovered by any amount of care, nevertheless the seller is liable.
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Invercargill City Council v Hamlin [1994] 3 NZLR 513, [1996] 1 NZLR 513 is a cited case in New Zealand regarding council liability for negligent inspection, as well the issue in tort when the start period for the statute of limitations for a latent defect begins.
Environmental stress screening (ESS) refers to the process of exposing a newly manufactured or repaired product or component (typically electronic) to stresses such as thermal cycling and vibration in order to force latent defects to manifest themselves by permanent or catastrophic failure during the screening process. The surviving population ...