Complaining about faulty goods or services is not that unusual. As a buyer, you have many rights – as long as you know how to exercise them properly. The seller is responsible for the defects and often has to pay the costs of fixing them. In this article, we will explain clearly what liability for defects means, the difference between it and a quality guarantee and what rights you have as a buyer. We will help you navigate not only the law but also practical situations.
Liability for defects means that the seller is liable for the fact that the thing sold has the characteristics agreed between the parties or the usual characteristics. If this is not the case, it is a defect and you have the right to demand that it be rectified.
Liability for defects arises by operation of law – so it is not necessary to have any express wording in the contract, you can claim it without it. There are stricter rules for consumer contracts, which provide more protection for the buyer.
How it works in practice:
Peter bought a new laptop. The description on the e-shop stated that the laptop had a battery life of ten hours. But when he started using his new laptop, he found that it actually switched off after just three hours of normal use. In this case, it is a defect – the device does not correspond to the declared characteristics. The seller is liable for this defect, even though it was not apparent when the goods were received.
Have you discovered a hidden defect after buying a car or other item and the seller refuses to address the situation? Or has the defect caused you damage – such as repair costs, an expert’s report or loss of use of the item? Don’t let it happen. You have a legal right to compensation and we can help.
While liability for defects arises directly from the law and is automatic, a guarantee of quality is a voluntary commitment by the seller (or manufacturer) that the item will work for a certain period of time. The provider of the guarantee thus gives the buyer the assurance that the item will not break down during that period – and if it does, the provider will arrange for its repair or replacement.
How it works in practice:
Jana bought a washing machine on the understanding that the manufacturer provides a three-year quality guarantee. When the washing machine stops spinning after two years, Jana has the right to have the washing machine repaired. Even if the fault is due to a hidden defect, the quality guarantee still protects her after the basic statutory period has expired. If, on the other hand, the seller did not provide a guarantee and the defect was not discovered until two years later, liability for defects would no longer apply to ordinary consumer goods. The quality guarantee is therefore always an extra bonus.
In the event that a defect appears in the goods purchased, the buyer has several options within the scope of his rights under defective performance to resolve the situation. The Civil Code sets out four basic claims that can be made – the choice between them depends mainly on the nature of the defect, its severity and the possibility of remedying it. It depends on whether the breach of contract is material or immaterial. A material breach is one that impedes the purpose of the contract.
The buyer may assert the following four claims:
This claim is most common for goods where repair is both technically possible and makes economic sense. This is typically the case with electronics, appliances or automotive parts. If, for example, a new mobile phone has a problem with the display which goes out spontaneously, the buyer can claim for its repair. The seller (or a service authorised by the manufacturer) is then obliged to fix the defect without undue delay, free of charge. The repair should be carried out in such a way that the goods function as originally intended.
An item is replaced primarily if the defect is irremediable or if the same defect occurs repeatedly – that is, even after previous repairs. According to case law, the defect should appear at least three times. This claim is particularly important in terms of the quality guarantee, as the buyer expects the item to function without serious problems for a specified period of time.
How it works in practice:
For example, Lenka buys a new washing machine which starts leaking after a week of use. She advertises it, but after the repair, the same problem reappears. If the fault is repeated at least three times, Lenka has the right to ask for a new, faultless replacement – not just another repair.
By guaranteeing the quality, the seller undertakes that the item will be fit for its usual purpose or retain its usual characteristics for a certain period of time. These effects include the indication of the guarantee period or the shelf life of the item on the packaging or in the advertisement. A guarantee may also be given for an individual part of the item.
A discount can be applied in cases where the buyer keeps the goods but their value is lower due to a defect. This procedure is particularly suitable for minor, cosmetic or partially removable defects. However, the discount must correspond to the extent of the defect and its effect on the use of the product.
How it works in practice:
Paul orders a new dining table, but on delivery he discovers that the table has a small scratch on the top which, although it does not affect its function, spoils its appearance. If Paul does not agree with the seller on a replacement, he can claim a reasonable discount – for example, 10% of the purchase price.
This is the most serious step and is only applicable if the defect is so substantial that the goods cannot be used properly or if the defect fundamentally undermines confidence in the seller. Withdrawal means that the contract of sale is cancelled – the buyer returns the goods and the seller refunds the money.
How it works in practice:
Václav buys a used car, claiming that the advertisement says the car is “in perfect condition”. After a few weeks, however, it turns out that the car has a serious hidden engine defect that significantly affects its operability and was already known at the time of sale. In this case, Václav can withdraw from the contract and demand a full refund.
The seller is liable for defects that were present when the item was taken over or that become apparent during the warranty period. In the case of consumer goods, the statutory period for claiming liability is 24 months. If the defect manifests itself within twelve months of receipt, it is deemed to have existed at the time of delivery.
If a quality guarantee has been granted, the rights arising from the defective performance apply for the duration of the guarantee – even if the normal two-year period has already expired.
The seller must settlethe claim within 30 days, otherwise the buyer has the right to withdraw from the contract.
Tip: Did you know that there are situations where the seller does not have to take the goods back? Read more about this in our article on returns.
In practice, there is often talk of “technical” or “functional” defects, but the law makes a distinction:
Especially in the field of real estate, defects play an important role. In the case of new constructions, contractors give, for example, a five-year quality guarantee. The contractor thereby guarantees that the work will not have serious construction defects. If, for example, cracks in the walls or leaks in the roof start to appear within two years, the client is entitled to have them repaired. It is important to report the defects as soon as possible and to have documentation to prove the actual state of affairs (photos, expert opinion, minutes of the handover procedure).
To avoid legal disputes where, for example, the seller does not want to accept liability for defects, you can take a few simple steps. First, make sure you have a thorough contract agreement. In commercial relationships, you can also contractually regulate liability for defects (e.g. the seller can limit the period for which he is liable for defects or exclude the warranty). Check the goods thoroughly when you receive them. Particularly for real estate and expensive goods, it pays to inspect the item thoroughly or have an expert inspect it before you pay for it. And third: Document everything. Keep every defect and communication with the seller – it will help you in any dispute, as the buyer has the burden of proof.
Tip: Buying a property is a big investment, often the biggest we make in our lifetime. We know what you should check before you pay for it.
Liability for defects is a legal obligation of the seller, who guarantees that the sold item has the agreed or usual characteristics; if not, the buyer may exercise his rights under the defective performance. These include repair, replacement, a discount on the purchase price or withdrawal from the contract – depending on the severity of the defect. In contrast to this legal liability, a guarantee of quality is a voluntary promise by the seller that the goods will be faultless for a certain period of time. Defects can be factual (e.g. a defect, a missing part) or legal (e.g. a lien). The buyer has fixed time limits and rights when making a claim, whether it is for consumer goods, a car or real estate. In the event of a complaint, the seller is obliged to settle it within 30 days, otherwise the buyer can withdraw from the contract.
A latent defect is a defect in the goods which existed at the time of acceptance but was not detectable on normal inspection. According to the new Civil Code (§ 2099 et seq.), the buyer has the right to demand repair, a price reduction or withdrawal from the contract if the hidden defect becomes apparent later.
A typical example is an engine failure in a car that only becomes apparent after several weeks of use, even though the car was in working order when it was purchased.
Importantly, the buyer must claim the defect as soon as they discover it – a later claim may be rejected.
A hidden defect is a defect that was already present when the car was taken over, but the buyer could not detect it at the time of purchase, even during a routine inspection.
For example, it could be a hidden crash, a concealed tachometer spin, or an internal engine or transmission defect.
If a hidden defect becomes apparent, the buyer should have the vehicle professionally inspected as soon as possible – ideally by an expert or an authorised repairer. An expert report will help prove that the defect existed at the time of purchase, which is crucial for a successful claim or withdrawal.
If, after buying a used car, a hidden defect in the used car becomes apparent, you have the right to claim it from the seller.
For consumer purchases, the protection under Section 2161 of the German Civil Code applies – if the defect manifests itself within 12 months of receipt, it is deemed to have existed at the time of purchase.
The buyer can demand a repair, a discount or even withdrawal from the contract if there is a material breach of contract (e.g. concealed accident, serious engine failure).
It is advisable to claim everything in writing and to keep evidence – photographs, service reports or an expert’s report.
The seller is always liable for hidden defects in the car if it is proven that the defect already existed when the car was taken over.
This applies both to new cars and to the purchase of a used car from a car dealer or business.
If you buy a car from a private individual, a more lenient regime applies – liability can be contractually limited or excluded if the seller did not know about the defect and did not conceal it.
In the event of a dispute, an expert’s report is often used to prove that the defect was older and the seller is therefore liable.
Yes, a latent defect can be claimed even after the purchase of the car, as long as it manifests itself within 24 months of taking delivery (for consumers).
If the defect manifests itself within 12 months, the law assumes that it existed at the time of delivery – so the buyer does not have to prove its origin.
The complaint must be made without undue delay after the defect becomes apparent, preferably in writing. The seller must settle the complaint within 30 days, otherwise the buyer has the right to withdraw from the contract.
Get compensation for harm or damage – quickly and without stress. We will assess your chances, propose a strategy and prepare a challenge. All within 48 hours of placing your order. If necessary, we will then file a lawsuit and arrange legal representation. We will stand up for you fully.
Ondřej is the attorney who came up with the idea of providing legal services online. He's been earning his living through legal services for more than 10 years. He especially likes to help clients who may have given up hope in solving their legal issues at work, for example with real estate transfers or copyright licenses.
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