Buyer Assumes Risk of Known Potential Defect Despite Subsequent Claim of Concealment

A party who had entered into a contract for the sale of an asset, after having been informed by the seller of a potential defect which could affect the buyer's intended use, subsequently initiated legal action seeking rescission of the sale on the grounds of a concealed defect that rendered the asset unfit for its known purpose. The court rejected the appeal, reasoning that the buyer, having been explicitly warned about a potential issue that could impact their specific use of the asset prior to finalizing the agreement, could not later claim ignorance or deception regarding that known potential defect as grounds for rescission, as the risk was assumed upon contracting.