Doctrine of Caveat Emptor

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[Latin, Let the buyer beware.

] A warning that notifies a buyer that the goods he or she is buying are "as is," or subject to all defects. When a sale is subject to this warning the purchaser assumes the risk that the product might be either defective or unsuitable to his or her needs. This rule is not designed to shield sellers who engage in Fraud or bad faith dealing by making false or misleading representations about the quality or condition of a particular product. It merely summarizes the concept that a purchaser must examine, judge, and test a product considered for purchase himself or herself.

doctrine of Caveat Emptor

The maxim of Caveat Emptor means let the buyer beware. According to the doctrine of Caveat Emptor It is the duty of the buyer to be careful while purchasing goods of his requirement absence of any enquiry from the is not bound to disclose every defect in goods of which he may be aware. Exceptions. 1. Where the seller makes a mis-representation and the buyer relies on it, Such a contract being voidable at the option of the innocent party, the buyer has a right to rescind the contract.

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2. Where the seller makes a false representation amounting to fraud and the buyer relies on where the seller actively conceals a defect goods so that the same could not be discovered on a reasonable examination, 3. Where the goods are purchased by description and they do not correspond with the description.

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Where the goods are purchased from a seller who deals in such class they are not of merchantable quality,. But the doctrine it applies, if the buyer has examined the goods, as regards defects which such examination ought to have revealed. 5. Where the goods are bought by sample and if the Bulk does not correspond with the sample, or sample, or if there is any hidden or latent defect in the goods

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6. Where the goods are bought by sample as well as By description and the bulk of the goods does not correspond both with the sample and with the description, 7. Where the buyer makes known to the seller the purposefor which he requires the goods and relies upon the sellers skill and judgment but the goods supplied are unfit for the specified purpose, Where the trade usage attaches condition or warranty as to quality or the seller deviates from that,

an implied fitness and

Caveat Emptor is a fundamental principle of the law of sale of goods. It means "Caution Buyer", i.e. "Let the buyer beware". In other words, it is not the duty of the seller's duty to point out defects of his own goods. The buyer must inspect the goods to find out if they will suit his purpose.

ExPigs were sold "subject to all faults", and these pigs, being infected, caused typhoid to other healthy pigs of the buyer, it was held that the seller was not bound to disclose that the pigs were unhealthy. The rule of the law being 'Caveat Emptor'. [Goddard v. Hobbs 1878, 4 App. Cas. 13].

Exceptions
1. Where the seller makes a false representation and buyer relies on that representation. The rule of "Caveat Emptor" will not apply and the buyer will be entitled to the goods according to that representation; 2. Where the seller actively conceals a defect in the goods, so that on a reasonable examination the same could not be discovered; 3. Where the buyer makes known to the seller the purpose for which he is buying the goods, and the seller happens to be a person whose business is to sell goods of that description, then there is an implied condition that the goods shall be reasonably fit for such purpose. The rule of Caveat Emptor will

not apply; 4. In case of sale by description, there is implied condition as to their being of merchantable quality. However, if the buyer has examined the goods, this condition of "merchantability" extends only to hidden or latent defects. The defects, which such examination ought to have revealed, are not covered, i.e., the rule of Caveat Emptor will be applicable. Ex In Donoghue v. Stevenson (the `snail in the ginger-beer `case) it was held that manufacturers owed a duty to the ultimate consumer to take care in making their goods where there is no likelihood of their being examined before they reach the ultimate consumer.

When does property pass from the seller to the buyer


(a) Specific or Ascertained goods - the property in the good is transferred to the buyer at such times the parties to the contract intend to be transferred or when something has to be done by the seller to put them in a deliverable state, property passes only when such thing is done, and the buyer has notice thereof. ExThe whole of the contents of a cistern of oil were sold, and the seller had to put the oil in casks to be then delivered to the buyer. Held, the property did not pass until the oil was actually put into casks ready for delivery and the buyer was notified accordingly. [Rugg v. Minett, 1809,11 East 2.101]. (b) Unascertained or Future Goods - property in the goods is not transferred to the buyer unless and until the goods are ascertained. ExX agrees to sell Y 200 quintals of wheat out or a larger quantity lying in X's store. The agreed price is to be paid on the day appointed under the contract. Unless and until the required quantity of 200 quintals is separated from the larger quantity and the goods have thus been ascertained, -property cannot pass from the seller to the buyer.

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