Spearin doctrine

Definition

The 1918 case behind the plans warranty, whose reach a subcontract or a state statute can change.

Why It Matters

The warranty itself is the term beside this one, and what varies is how far it reaches. 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. Elsewhere the warranty can be signed away in a subcontract, where a buyer reading only the accounts will never see it. Texas is the exception twice over: its 2021 statute says a contractor is not responsible for design defects in plans another party provided, except on certain critical infrastructure work, and it voids a purported waiver of that rule. Read the seller's standard subcontract for a design-risk clause before pricing the rework line.