Caveat Emptor

By
Abhishek singh
Bba-3d
A30606418049
The Sale of Good Act 1930

Originally, The law relating to sale of goods was contained in The Indian
Contract Act 1872

The same was repealed and Re-enacted by the sale of good act 1930

The act came into force on 1st July 1930

The Indian scale of good act closely follows the English sale of good act
1893
Caveat emptor

• Caveat emptor is a fundamental principle of the law of sale of goods

• It means “caution buyer”,i.e.”let the buyer beware”
• Caveat means beware
• Emptor means buyer
• In other words, it is not the duty of the sellers to point out defects of his
own goods
• The buyer must inspect the goods to find out if they will suit his purpose
Exception to caveat emptor

 Purchase By Description. [Section 15 ]

 Purchase by samples and Description. [Section 15 ]

 Fitness for purpose. [Section 16 (1) ]

 Merchantable Quality. [Section 16(2) ]

 Consent By Fraud. [Section ]

 Sale By Sample. [Section 17]

 Conditions as to title. [Section 14 (a) ]

 Exceptions to caveat emptor

 Purchase By Description: - The rule of caveat emptor does not apply in a

case where goods are brought by description from a seller.
Examples :- Case of “Andrews vs Singer And Co.Ltd.” 1934.
• A car is sold as a “New Singer car”. The buyer find it to be a used one. The
buyer may reject the car or retain the car and claim damages.
Exception to caveat emptor

• Purchase by samples and Description: - Where goods are bought by samples as

well as by description and the bulk of goods do not correspond with the
description, the buyer is entitled to reject the goods.

• Fitness for purpose:- Where the buyer informs the seller the particular purpose
for which the goods are required and relies upon seller’s skill or judgment.

• Merchantable Quality:- Where the goods are brought by description from a

seller who deals in goods of that description. Whether he is a manufacturer or
producer or not, there is an implied condition that the goods should be of
merchantable quality.
Exception to caveat emptor

• Consent By Fraud :- Where the seller makes a false statement intentionally to

the buyer and the buyer relies on it or where the seller knowingly conceals the
defects in the good, the doctrine of Caveat Emptor does not apply..

• Sale By Sample:- In a sale of goods by sample. The rule of caveat emptor does
not apply if the bulk does not correspond with the sample, or if the buyer is not
given an opportunity to compare bulk with the sample.

• Conditions as to title : - The general rule is that only the owner of

goods can transfer a good title. No one can give a better title than he
himself has.