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 Y’s dairy .The milk contained typhoid terms .X’s 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 Y’s 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