Professional Documents
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Usually buyers often have less information about the good or service they are
purchasing, while the seller has more information. Defects in the good or service may
be hidden from the buyer, and only known to the seller information asymmetry
As the maxim applies, not only to the quality of, but also to the title to, land which is
sold, the purchaser is generally bound to view the land and to enquire after and
inspect the title-deed.
Under the principle of caveat emptor, the buyer could not recover damages from
the seller for defects on the property that rendered the property unfit for ordinary
purposes.
2. Where goods are bought by description from a seller who deals in goods of that
description (whether he is the manufacturer or producer or not),there is an
implied condition that the goods shall be of merchantable quality: Provided
that ,if the buyer has examined the goods, there shall be no implied condition
as regards defects which such examination ought to have revealed.
Highlights Section 15
If there is a contract for the sale of goods by description, there is an implied
condition that goods shall correspond with the description.
4. Concealment By Seller :If a seller does not disclose the defects of the goods to the buyer which could
not be discovered after a proper examination this principal does not apply.
5. Bulk According to Sample :The principal of Caveat Emptor does not apply the bulk of the goods does not
correspond with the sample.
The Judgement:
In this case builder uses sub-standard material in construction of a building or
makes false misleading representations about the condition of the house then it is
denial of the facility or benefit of which a consumer is entitled to claim value.
The end product delivered to the plaintiff is basically deficiency in services.
Last but not the least Implied Merchantability is not fulfilled . Here merchantability
means goods do not differ from the normal quality of the described goods including
,under the term quality, the state or condition as required by the contract and the
goods should be immediately saleable under the description by they are known in
the market.
During the pendency of the suit the 1st defendant company was
taken over by the Eternit Everest Ltd., Coimbatore (3rd defendant)
The 2nd defendant and the 3rd defendant adopted the above
contentions put forward by the 1st defendant
The petitioner alleged that all the owners of the apartments in the Ashwood Villa
formed into an association, spent money for construction of compound wall,
landscaping, provision for drain water pipes and for lighting of the stilt.
The builder contravened the sanction plan and on apprehension, the petitioner
and others approached various forums for regularization of constructions. The
builder with the connivance of respondents (owners of the land), made
constructions in deviation of the sanctioned plan.
The cancellation deed was executed on the ground that the petitioner did not pay
the sale consideration and therefore, the sale could not be completed. By the said
cancellation deed, the sale deed executed in favour of the petitioner on 12.01.1994
was cancelled, which is illegal and contrary to the provisions of Registration Act
and Transfer of Property Act, 1882 (TP Act)
These cases have thrown up a couple of interesting questions of law having far
reaching consequences:
Whether a person can nullify the sale by executing and registering a
cancellation deed?
Whether a Registering Officer, like District Registrar and/or Sub-Registrar
appointed by the State Government, is bound to refuse registration when a
cancellation deed is presented?
When cancellation deed is registered how the grievance, if any, is to be
redressed in law?
It means that buyer should be very careful in a contract of sale. While purchasing
the goods the buyer should check the goods carefully.
If a buyer purchases the goods and after it he comes to know that these are
defective. In this case seller will not be responsible for this defect.
The object of this principle is to make the buyer more careful in purchasing. It is
his duty that he should check the quality and fitness of the commodity which he
needs.
This law is framed to save the buyer from the expected loss in future.
The rule of 'caveat emptor' applies whenever the buyer voluntarily chooses what
he buys. But it does not mean that the buyer should 'take chance' but it means he
should 'take care'.