Business, Legal & Accounting Glossary
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 Even an “as is” purchase could be rescinded if it could be shown the seller knew of the flaw.
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This glossary post was last updated: 28th April, 2020 | 0 Views.