View Full Version : What do you understand by rule ‘caveat emptor’. Are there any exceptions to this rule

11-30-2011, 07:47 PM
W Are there any exceptions to this rule. (2002)
1. Introduction:
Under contract of sales of goods buyer should be very careful while purchasing the goods from seller. If a buyer purchases the goods and afterwards he comes to know that goods are defective. In this case seller will not be reasonsible for the defects in the goods.
2. Doctrine of caveat emptor:
Doctrine of caveat emptor has been stated in sec 16 of sales of goods act.
3. General rule:
It is the general rule that in a contract of sale the seller does not guarantee the quality of fitness for any particular purpose of goods supplied under a contract of sale.
4. Explanation:
Caveat emptor means “let buyer beware. It is a latin maxim. According to this doctrine it is the duty of the buyer to be careful while purchasing goods of his requirement. The buyer must examine the goods thoroughly. If the goods bought by the buyer prove to be defective or do not suit his purpose the buyer cannot hold the seller liable for the same.
5. Caveat emptor and modern ages:
The doctrine of caveat emptor originated at the time when selling and buying functions was face to face and was conducted in the open market. Now a days business and trade has become global and making it difficult for buyer to examine goods. This is the age of E-commerce but it applies to the sale of specific goods.
6. Exceptions:
The rule of caveat emptor has following exceptions.
(I) Purchase by description:
If a buyer enters into contract of sale of goods under description with the seller, it is an implied condition. These goods will be supplied according to the same quality.
(II) Misrepresentation:
If seller sells the goods under misrepresentation he will be liable for the compensation.
(III) Usage of trade:
An implied condition or warranty as to quality or fitness for a particular purpose may be annexed by usage of trade.
(IV) Consent by fraud:
Where the consent of the buyer in a contract for sale of goods is obtained by the seller by fraud. The doctrine will not apply.
(V) Concealment by seller:
If seller does not disclose the defects of the goods to the buyer and knowingly conceals the doctrine will not apply.
(VI) Sale under trade name:
Buyer rely on the seller’s skill so the doctrine does not apply.
7. Conclusion:
To conclusion it can be said that, seller is not supposed to know the particular purpose for which goods are required. He is not bound under law to explain defect in the goods. It is the function of buyer to take reasonable care and to be vigilant enough to scrutinize the goods while purchasing.