Liability for legal defects in contracts

In addition to material defects under a contract of sale, the seller is also liable for legal defects. Legal defects are governed by Article 430 of the Civil Obligations Act and arise when a third party holds a right over the subject of the contract that excludes, reduces, or limits the buyer's right—provided that the buyer was not informed of this right and did not agree to accept the item encumbered by it. The seller guarantees that the right being transferred exists and that there are no legal obstacles to its fulfillment. 1) The transaction is made for consideration; 2) The defect existed...

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