Can a garage that passed a car be held liable for repairs required to the car after the purchase?

Newfoundland and Labrador, Canada


The following excerpt is from Loder v 58692 NL Corp, 2019 CanLII 22123 (NL PC):

If a prospective purchaser of a used car buys the car relying on a garage’s report that the car is roadworthy, then in some cases the garage which passed the car can be held liable for repairs required to the car after the purchase. This is because a failure to identify a major structural defect in a vehicle can amount to a breach of contract. See: Davies v. Alberta Motor Assn., 1991 CarswellAlta 282 (P.C.).

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