Final answer:
The matter concerns property and contractual rights in the context of real estate, where a seller breached an implied covenant by failing to properly convey water rights in a property sale, potentially leading to legal recourse for the buyer.
Step-by-step explanation:
In the scenario described, we are dealing with a legal matter concerning real estate, especially focused on property rights and contractual rights. The essential issue involves a breach of implied covenant when a seller conveys water rights that were appurtenant to a property without properly exempting them from the grant deed to the buyer. This failure jeopardizes the contractual agreement between the buyer and seller, which is based on the premise that property rights can be established and protected through legal contracts, enabling individuals or firms to enter into agreements with others about the use of their property and ensuring recourse through the legal system in the event of noncompliance.
For instance, an employment agreement between a surgeon and a patient emphasizes the necessity of contract enforcement: should the patient fail to pay, the surgeon has the right to seek legal remedy for the breach of the contract. Similarly, in a real estate transaction, when a seller does not disclose all pertinent information, such as transferring water rights without notice, it represents a breach that can be addressed legally, because of the societal framework that upholds contracts.