Ans.
THE DOCTRINE OF CAVEAT
EMPTOR
Caveat Emptor is a Latin expression, which means, “Buyers
Beware”. The doctrine of caveat emptor means that, ordinarily, a buyer must buy
goods after satisfying himself of their quality and fitness. If he makes a bad
choice he cannot blame the seller or recover damages from him. This doctrine is
stated in the opening words of section 16: Subject to the provisions of this
Act and of any other law for the time being in force, there is no implied
warranty or condition as to the quality or fitness for any particular purpose
of goods supplied under a contract of sale.
1. It is buyer's duty to examine goods thoroughly.
2. The buyer should ensure at the time of purchase that
the goods conform to his requirements.
3. If the goods turn out to be defective, buyer cannot
hold the seller responsible.
EXCEPTIONS: The doctrine of caveat emptor does
not apply in the following situations:
1. Fitness as to quality
or use. [Sec. 16(1)]
(a) Where the buyer, expressly or by implication, makes
known to the seller the particular purpose for which the goods are required,
(b) so as to show that the buyer relies on the seller's
skill, or judgment, and
(c) the goods are of a description which it is in the
course of the seller’s business to supply (whether he is the manufacturer or
not, there is an implied condition that the goods shall be reasonably fit for
such purpose.)
In Priest Vs. Last, P purchased a hot water bottle from a
chemist. The chemist informed him that the bottle was specially meant for
holding hot water. At the time of use, the bottle burst as soon as hot water
was poured into it and injured P’s wife. Chemist was held liable to pay damages
to P. However, this rule does not apply when the goods are sold under a patent
or a brand name.
2. Sale of goods by
description. [Sec. 16(2)]
Where there is a sale of goods by description, there is
an implied condition that the goods are merchantable that is, fit for
particular purpose.
3. Trade usage. [Sec.
16(3)]
An implied condition of fitness may be annexed to a
contract of sale by usage of trade.
E.g. In readymade garment business, there
is an implied condition by usage of trade that the garments shall be reasonably
fit on the buyer.
4. Where the seller is
guilty of fraud.
Where the seller makes a false representation and buyer
relies on that representation, the doctrine of caveat emptor will not apply. In
such a case the buyer will be entitled to the goods according to that
representation.
5. Where seller actively
conceals a defect
Where the seller actively conceals a defect in the goods
so that the same could not be discovered on a reasonable examination, the
doctrine of caveat emptor will not apply. Such a contract will be voidable.
6. Sale by sample
When goods are purchased by sample, the bulk must
correspond with the sample and the buyer must have reasonable opportunity of
inspecting the goods.
7. Sale by sample as
well as description
The doctrine of Caveat Emptor is not applicable if the
goods do not correspond to both, sample as well as description.
