Final answer:
A vendor is liable for breach of warranty against hidden defects when the defects were unknown to the buyer, render the property unfit for its intended use, or are discovered after the sale. Visible defects are typically not covered as the buyer is expected to inspect the goods before purchasing.
Step-by-step explanation:
A vendor is liable for breach of warranty against hidden defects in several situations, but particularly when:
- The defects were unknown to the buyer at the time of purchase.
- The defects render the property unfit for its intended use.
- The defects are discovered after the sale has been completed.
It's important to note that a seller would not typically be held liable for patent or visible defects that could have been discovered by the buyer upon reasonable inspection before the purchase. Warranties and service contracts play a significant role in how product liability is handled, with manufacturers or sellers promising to fix or replace defective goods within a certain period or under certain conditions.
Case Study of Liability
For example, if a car manufacturer sells a vehicle with a known defect in the brake system, it would be liable for any accidents or injuries caused by that flaw, as the knowledge of the defect and the risk it posed could have been disclosed and remedied before the sale.