In today's society, trust and assurance in the process of buying and selling transactions have become the core of maintaining relationships between the parties involved. The liability for warranty against defects in goods, as an important provision in civil law, aims to protect the rights of the buyer and ensure the fairness of transactions.

What is the liability for warranty against defects in goods?

The liability for warranty against defects in goods refers to the seller's responsibility to ensure that the goods are free from any defects that could cause loss or reduce their value, or affect their usual or contractually agreed utility, up until the delivery of the goods (transfer of risk). If the goods are found to be defective, the buyer has the right, depending on the actual situation of the case, to demand a reduction in price, compensation for damages, delivery of another item, or termination of the contract.

【Case Background】

In this era of high housing prices, a young and promising individual named Xiao De managed to move into his ideal new home and purchased a mechanical parking space in the community through his own efforts. However, after moving in, he discovered numerous defects in the common areas, and the parking tower equipment malfunctioned every few days, severely impacting his daily life and work. After unsuccessful attempts to communicate with the developer, he had no choice but to seek legal recourse.

【Our Practical Experience】

According to Article 354, Paragraph 1 of the Civil Code, the liability for warranty against defects in goods arises when the subject matter is transferred to the buyer with defects. If the buyer does not terminate the contract or request a reduction in price according to Article 359 of the Civil Code, but instead agrees with the seller to repair the defects, thus maintaining the contractual balance of consideration, it is permitted by the principle of private autonomy. If the defects occur after the contract is established, it also constitutes a liability for non-performance due to incomplete performance, and the buyer may request the repair of defects.

Therefore, subsequent repairs cannot negate the fact that the subject matter originally had defects. If the repairs do not completely remove the defects, unless the buyer simultaneously renounces the right to terminate the contract, request a reduction in price, or claim damages, the buyer still has the right to exercise rights based on the liability for warranty against defects or incomplete performance, although at this point, whether the contract termination is manifestly unfair and the damages caused by the defects should be determined based on the current condition of the subject matter after repairs.

Accordingly, the defendant in this case, the developer, argued that the disputed parking tower had been repaired by a mechanical parking maintenance company and had already obtained a mechanical parking equipment use permit, which does not affect the establishment of liability for warranty against defects. Moreover, despite the defendant's argument that the disputed parking tower had already obtained a mechanical parking equipment use permit, the permit was issued before the sales contract between the two parties was established, so it cannot prove that the defects found in the parking tower after delivery had been repaired, nor can it be used to infer that there were no defects at the time of risk transfer.

Thus, Xiao De can not only claim warranty against defects but also claim damages for non-performance, for the damages caused by the defects in the disputed parking tower and the common areas of the disputed building, i.e., the inconvenience Xiao De had to endure in his daily life due to these defects, and request compensation for damages. Moreover, this damage falls under Article 222, Paragraph 2 of the Civil Procedure Law, which stipulates that if the amount of damages cannot be proved or is significantly difficult to prove, the court shall determine the amount of compensation by considering the nature, location, and current condition after repairs of the defects, the frequency of malfunctions of the disputed parking tower, the potential delays in time and schedule caused by the malfunctions, the price Xiao De paid for the disputed building, and the rental market rates for parking spaces in the area, among other circumstances.

If you encounter defective goods in a transaction, or have any questions and needs regarding the liability for warranty against defects, the DeYi professional team is always ready to provide you with legal advice and support. Please do not hesitate to contact DeYi, and let us assist you in protecting your rights and seeking the best solution together.

Reference: Supreme Court Judgment No. 1085 of 89th Year, Civil Code Property Rights.

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