P. 1
Caveat Emptor

Caveat Emptor

|Views: 61|Likes:
Published by Ankur Burman

More info:

Published by: Ankur Burman on Jun 10, 2011
Copyright:Attribution Non-commercial


Read on Scribd mobile: iPhone, iPad and Android.
download as PPT, PDF, TXT or read online from Scribd
See more
See less






¶ When the sellers display their goods in the open market. it is for the buyers to make a proper selection of the goods. goods.Doctrine Of CAVEAT EMPTOR The maxim Caveat Emptor means µlet the buyer beware. Buyer cannot hold the seller liable if the goods turn out to be defective or do not suit his purpose or if the buyer makes a mistake in assessing the quality of goods. .

Section 16 of the Sale of Goods Act has enunciated this principle in the following words : ³Subject to the provisions of this Act or any other law for the time being in force. there is no implied warranty or of condition as to the quality or fitness for any particular purpose of goods supplied under a contract of sale.´ .

. as he depended on his own skill and judgment. in fact were old. The rice. Therefore. the rule of Caveat Emptor was applicable.Example: µA' purchased from µB¶ basmati rice. Here. B erroneously thought that the rice were new. A cannot avoid the contract.

The Doctrine of Caveat Emptor is. Section 16(i) . Where the buyer has made known to the seller the purpose for which he requires the goods and depends on the seller¶s skill or judgment. there is an implied condition that seller will supply the goods which are fit for that purpose. subject to the following exceptions : Implied condition as to quality or fitness..

The condition as to merchantable quality is broken and therefore.Example: A buys a black yarn from B and finds that it has been damaged by white ants. the doctrine of caveat emptor does not hold good. .

Section 16(2) .. Sale of goods by description. who deals in such class of goods. Where the goods are purchased by description from a seller. there will be an implied condition that the goods shall be of merchantable quality.

The bulk corresponds to the sample but the seeds supplied are giant sainfoins and not English sainfoin. . duly exhibited by a sample. There is a breach of condition as to description of goods. So the doctrine of caveat emptor is not applicable.Example: English sainfoin seeds. are sold.

 Usage of trade. Section 16(1) . the rule of caveat emptor does not hold good. An implied condition or warranty as to quality or fitness for a particular purpose may be annexed by the usage of trade and if the seller deviates from that..

.Example: A dealer sells a refrigerator to Mohit. This would amount to breach of an implied condition and thus the doctrine of caveat emptor will not work. The refrigerator performs all other functions except making ice.

. When the buyer relies on false representation of the seller and suffers damages. in a contract where the buyer¶s consent was obtained by the seller by fraud. i... Consent by fraud.e. the doctrine of caveat emptor will not hold good.

A had to remove the labels and sell them at a loss.A. To get the clearance certificate from the customs.S. they were detained by the custom authorities.Example: A bought 3000 tins of preserved milk from U. Now A can hold the seller responsible for fraud and claim damages. The tins were labeled in such a way as to infringe the Nestlé's trademark. As a result. .

Thank you .

You're Reading a Free Preview

/*********** DO NOT ALTER ANYTHING BELOW THIS LINE ! ************/ var s_code=s.t();if(s_code)document.write(s_code)//-->