Buyer v. Seller: Rescission for Latent Defect Despite Seller's Good Faith

A buyer, having suffered damages due to a latent defect in a purchased item which the seller claimed to be unaware of, sued the seller for rescission of the sale and damages, but the lower court dismissed the claim for damages while granting rescission based on the seller's warranty against latent defects. The reviewing court upheld the lower court's decision, reasoning that while the seller's good faith negated the possibility of the seller having knowledge of the defect, thereby precluding liability for damages based on fraudulent misrepresentation, the seller remained liable for breach of the contractual warranty against latent defects, which permitted the buyer to obtain rescission of the sale and recovery of the purchase price, even if damages beyond rescission were not warranted.