Spearin doctrine

Definition

The rule that owner-supplied drawings carry a warranty that they will work.

Why It Matters

The implied warranty of plans is the rule and this is its name and its source. A 1918 Supreme Court decision held that a contractor bound to build according to plans the owner prepared is not responsible for the consequences of defects in them. The warranty is not overcome by general clauses telling the contractor to examine the site and check the plans. Two things decide whether it reaches the business you are buying. Texas followed the opposite rule for over a century and reversed it by statute only in 2021, and its legislature's own analysis said Texas was then one of two states allowing a contractor to be held liable for design defects. And the warranty can be signed away in a subcontract, where a buyer reading only the accounts will never see it. Read the seller's standard subcontract for a design-risk clause before pricing the rework line.