DOCTRINE OF CAVEAT EMPTOR AND ITS EXCEPTIONS

AMIT MISHRA LECTURER AMITY LAW SCHOOL AMY.M1983@GMAIL.COM

DOCTRINE OF CAVEAT EMPTOR

The expression Caveat Emptor means

Let the buyer! Beware.

According to this principal, it is the buyers duty to select goods of his requirement. The buyer must ensure himself that the goods purchased by him are free from any defects; are of the right quality; and shall be fit for the purpose for which he intends to buy the goods.

 In short, the doctrine lays down the rule let the buyer beware i.e the buyer should keep his eyes open, mind active and should be careful and cautious while purchasing the goods and if afterwards the goods turn out to be defective or unusable, he himself is to be blamed for the same, and the seller cant be held liable for it. In simple words, if the buyer makes a bad choice, he must suffer the consequences of lack of judgment and skill. The seller is under no duty to disclose or reveal any defect about the goods sold.

CASE LAWS:
1. Smith v. Hughes: B bought oats from S a sample of which had been shown to B. B erroneously thought that the oats were old. The oats were, however new. Held, B could not avoid the contract. 2. Ward v. Hobbs: Pigs were sold subject to all faults and the seller knew that the pigs were suffering from swine-fever but he didnt inform the buyer about this defect. The seller was not liable for damages because there was no implied warranty.

EXCEPTIONS TO THE DOCTRINE OF CAVEAT EMPTOR

The doctrine of Caveat Emptor shall not apply if there is a breach of implied conditiona) Condition in case of sale by description [s. 15]- Where the goods are sold by description and the goods supplied by the seller dont correspond to the description.

b) Condition in case of sale by sample [s. 17]- In case of sale by Sample (S. 17)- Where the goods are sold by sample and the goods supplied by the seller dont correspond with the sample.
c) Condition in case of sale by description and sample [s. 15]

d) Condition as to quality or fitness [s. 16(1)]- where the buyer makes known to the seller the particular purpose for which he requires the goods and relies on the sellers skill or judgment, then the seller must supply the goods which shall be fit for the buyers purpose. e) Condition as to merchantable quality [s. 16(2)]- Where the goods are bought by description from a seller who deals in goods of that description, there is an implied condition that goods shall be of merchantable quality. f) Condition as to wholesomeness g) Condition implied by custom or usage of trade.

h) Consent by fraud- where the consent of the buyer is obtained by the seller by fraud or where the seller knowingly conceals a defect which could not be discovered on a reasonable examination.

THANKS!