Definition

Defects in the sale mean the quantity and quality of the property sold that impair either its value or its fitness for ordinary purposes or for the purposes of the contract. Sometimes, it could be either or both. This article gives you information about the quantity defect of both a movable property and an immovable property. There are some differences between a movable property and an immovable property.

Immovable Property

In a sale of immovable property (for instance, a land and/or house sale) where the total area is specified and the seller delivers the property less or more than what was contracted for, the buyer has the option either to reject it or accept it and pay the proportionate price. But if the deficiency or excess does not exceed 5% of the total area so specified, the buyer is bound to accept it and pay the proportionate price. The buyer can rescind the contract if the deficiency or excess is such that, had he known of it, he would not have entered into it.

Movable Property

Section 465 of the CCC stipulates that in the sale of movable property:

  1. Where the seller delivers the property for less than he contracted for, the buyer may reject it, but if the buyer accepts it, he must pay the proportionate price.

  2. Where the seller delivers more property than he contracted for, the buyer may accept the property according to the contract and reject the rest, or he may reject the whole. If the buyer accepts the whole of the property so delivered, he must pay the proportionate price.

  3. Where the seller delivers the property he contracted for mixed with the property of a different description not included in the contract, the buyer may accept the property according to the contract and reject the rest, or he may reject the whole.

Keep this fact in mind: Sections 466 and 465 give the buyer the option to reject or accept, which isn’t the seller’s option.

Liability for the Quantity Defects?

The seller has a liability for the defect, although there is no agreement between the seller and buyer about the liability for the defect, whether the seller knew or did not know of the existence of the defect. That is in accordance with Section 472 of the Civil and Commercial Code (CCC).

Exception of the Liability For the Seller.

There are some exceptions to the seller’s liability. First, under Section 473 of the CCC, the seller is not liable in the following cases:

  1. If the buyer knew of the defect at the time of sale or would have known of it if he had exercised such care as might be expected from a person of ordinary prudence.

  2. If the defect was apparent at the time of delivery and the buyer accepts the property without reservation.

  3. If the property was sold by public auction.

Second, there is an agreement that the seller doesn’t have liability for the defect. The defect in sales does not relate to public order or good morals. Therefore, the parties can make a different agreement under this law.

Prescription of Liability Claim.

The claim under Section 466 above is one year after the delivery date (Section 467 of the CCC). Another claim is 1 year from the date of the discovery of the defect (Section 474 of the CCC).

In this specific liability, time is precious, as you read that the prescription period is one year. So to your benefit, it is a good idea to consult us to prepare and assist you before and after the sale. If you are in need of a lawyer for your quantity defect claims or defence, we can help; just feel free to contact us.