Contract Rescission and Damages for Hidden Defects

The dispute concerned a contract where one party agreed to perform work for another, and the work was executed defectively, leading the commissioning party to seek rescission and damages based on the seller's guarantee against hidden defects. The court partially quashed the lower court's decision, reasoning that while the existence of a hidden defect allows for the termination of the contract or a reduction in price, the lower court erred by permitting the commissioning party to seek both rescission of the contract and damages for the resulting prejudice, as the primary remedies for a hidden defect under the relevant civil code provisions are mutually exclusive: either rescission or retention of the object with a price reduction, with damages only permissible in the case of the seller's bad faith regarding the defect.