Handout by Barrister Farzana Bi nte Razzaque, PHI 401 (Fall 2017), North South University

THE DOCTRINE OF CAVEAT EMPTOR

Caveat Emptor is a Latin which 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 and the buyer
must examine the goods thoroughly before he buys them in order to
satisfy himself that the goods will be suitable for the purpose for which
he is buying them from the seller
In the absence of any enquiry from the buyer, the seller is not bound to
disclose every defect in goods. If the buyer makes bad choice he cannot
blame the seller or recover damages from him. If therefore, while
making purchases of goods the buyer depends upon his own skill and
judgment and makes bad choice, he must curse himself for his own
foolishness, in the absence of any misrepresentation or fraud or
guarantee by the seller.
Exceptions: The doctrine of caveat emptor is subject to the following
exceptions:

(1) Where the buyer relies upon the skill and judgement of the seller

(2) Where there is a sale of goods by description and the goods does
not correspond with the description. In this case the seller is not
protected by the doctrine of caveat emptor.
(3) Where the seller makes a false representation, amounting to fraud
and the buyer relies on it, or where the buyer actively conceals a defect
in the goods and that defect could not be discovered on a reasonable
examination by the buyer, the doctrine of caveat emptor does not
apply. A contract of sale of goods must satisfy all the essential elements

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Handout by Barrister Farzana Bi nte Razzaque, PHI 401 (Fall 2017), North South University

of a contract and therefore if the consent is obtained by fraud, the

seller is not protected by the doctrine of caveat emptor.
(4) Where the seller makes misrepresentation and the buyer relies on
it, the doctrine of caveat emptor does not apply.
(5) Where the goods are bought by sample as well as description and
the bulk of goods does not correspond both with the sample and the
description. The buyer is entitled to reject the goods.

(6) Where the goods are purchased from the seller and goods are not of
‘merchantable quality’, the doctrine of caveat emptor does not apply.
But as discussed above, the doctrine applies, if the buyer has examined
the goods, and defects with such examination ought to have revealed .

(7) Where by trade usage attaches an implied condition or warranty as

to ‘quality or fitness’ and the seller deviates (moves away) from that,
the doctrine of caveat emptor does not apply. The seller is liable for
damages.
In cases not falling under any of the seven exceptions noted above, the
seller is not liable to any penalty if the goods purchased are found to be
unfit by the buyer for the purposes he has in mind.