CAVEAT EMPTOR

Doctrine of caveat emptor

Practical applications of the concept
Exceptions of the concept

Meaning
IT means let the buyer beware
That means the seller is under no duty to
reveal unflattering truths about the goods
sold
When the person buys some goods .he
must examine them thoroughly

 H bought oats from S a sample of which

had been shown to H .H thought that the
oats were old .But the oats were new
Held H could not avoid the contract

Exceptions
The doctrine of caveat emptor has certain
exceptions
1) Fitness for buyers purpose
Where the buyer expressly makes known to
seller the particular purpose for which he
requires the goods .

2) In case of Misrepresentation by seller

3) In case of Sale by description
4) In case of sale by sample
5) Merchantable Quality
( Where the goods are bought by description
from a seller who deals in goods of that
description there is implied condition that it
is of merchantable Quality?

A lady buys synthetic pearl for a high price

thinking that they are natural .The seller
does not correct her mistake .Has she any
remedies against the seller??

 X brought milk from Ys dairy .The milk

contained typhoid terms .Xs wife
consumed the milk ,became infected and
died . Is Y liable for the damages ?

 Held Y was liable for the damages

because the milk was not fit for human
consumption

 X bought set of false teeth from Y a dentist

.But the set was not fit for X. He rejected
the set of teeth and claimed for the refund
of price . Will he succeed?

 Yes because for the purpose for which he

wanted the set of teeth was not fulfilled.

 X agreed to sell 100 bags of wheat to Y

out of his stock of 500 bags. A fire broke
out and the entire quantity of wheat was
destroyed .State who shall bear the loss
and why? If
(a) If no bags had been separated before
fire for the purpose of delivery
(b) If 100 bags had been separated before
fire with Ys consent

 A) X shall bear the loss because the

ownership has not been transferred to Y
as the goods were not ascertained
B) Y shall bear the loss because the
ownership has transferred to Y as the
goods were ascertained

State whether the seller is unpaid or not

a) X sold some goods to Y Rs 10000.Y paid
9900 but fail to pay the balance
b) X sold some goods to Y on 1 month
credit and one month has expired
c) X sold some goods to Y and received a
cheque which on presenting was
dishonoured