Doctrine of Caveat Emptor :-

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.

Example :- Mr. Krishna went to market and purchased a bike to take a part in Bike race competition. But
he did not tell the seller that for which purpose he is buying. When he reached home, he came to know
that this bike is not suitable for bike race competition. Due to the principal of Caveat Emptor Mr. Krishna
can neither reject the bike nor can claim for compensation.


1. Practical Purpose Known To Seller :-
If the buyer informs and explains to the seller that the required goods are needed for such particular
purpose. He relies on the seller's skill and his judgement. In this situation seller is responsible to supply
the goods, fit for that particular purpose.


2. Purchase By Description :-
If a buyer enters into sale contract by description with the seller, it is an implied condition that good will be
supplied according the same quality.

Example :- Mr. Ghumun sells the butter to Mr. Rakha saying that it is a pure butter and there is no any
mixing in it. When Mr. Rakha uses it, he comes to know that there is adulteration in it. Now Mr. Ghumun
will be held responsible.

In this case two conditions are compulsory, "Purchase by description and seller deal in good as of that
description."


3. Misrepresentation By Seller :-
The seller will be liable for compensation if he sells goods to buyer by making misrepresentation.


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.


6. Merchantable Quality :-
Where goods are purchased by description from the seller who deals such goods are not of merchantable
quality the principal does not apply.


7. Sample and Description :-
The buyer is entitled to reject the goods if the goods are bought by sample as well as description and the
bulk does not correspond with both. W Are there any exceptions to this rule. (2002)

1. Introduction:
Under contract of sales of goods buyer should be very careful while purchasing the goods
from seller. If a buyer purchases the goods and afterwards he comes to know that goods
are defective. In this case seller will not be reasonsible for the defects in the goods.
2. Doctrine of caveat emptor:
Doctrine of caveat emptor has been stated in sec 16 of sales of goods act.
3. General rule:
It is the general rule that in a contract of sale the seller does not guarantee the quality of
fitness for any particular purpose of goods supplied under a contract of sale.
4. Explanation:
Caveat emptor means let buyer beware. It is a latin maxim. According to this doctrine it is
the duty of the buyer to be careful while purchasing goods of his requirement. The buyer
must examine the goods thoroughly. If the goods bought by the buyer prove to be defective
or do not suit his purpose the buyer cannot hold the seller liable for the same.
5. Caveat emptor and modern ages:
The doctrine of caveat emptor originated at the time when selling and buying functions was
face to face and was conducted in the open market. Now a days business and trade has
become global and making it difficult for buyer to examine goods. This is the age of E-
commerce but it applies to the saleof specific goods.
6. Exceptions:
The rule of caveat emptor has following exceptions.
(I) Purchase by description:
If a buyer enters into contract of sale of goods under description with the seller, it is an
implied condition. These goods will be supplied according to the same quality.
(II) Misrepresentation:
If seller sells the goods under misrepresentation he will be liable for the compensation.
(III) Usage of trade:
An implied condition or warranty as to quality or fitness for a particular purpose may be
annexed by usage of trade.
(IV) Consent by fraud:
Where the consent of the buyer in a contract for sale of goods is obtained by the seller by
fraud. The doctrine will not apply.
(V) Concealment by seller:
If seller does not disclose the defects of the goods to the buyer and knowingly conceals
the doctrine will not apply.
(VI) Sale under trade name:
Buyer rely on the sellers skill so the doctrine does not apply.
7. Conclusion:
To conclusion it can be said that, seller is not supposed to know the particular
purpose for which goods are required. He is not bound under law to explain defect
in the goods. It is the function of buyer to take reasonable care and to be vigilant
enough to scrutinize the goods while purchasing.

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