Caveat Emptor
What is Caveat Emptor?
Caveat Emptor means 'Buyer Beware'. Under section#16 of Sale of Goods Act, "Subject to the provisions of this Act; there is no implied warranty or condition as to the quality or fitness of any particular purpose of good supplied under a contract of sale."
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'Buyer Beware' is a cautious step taken by this Act keeping in view the customary practice of sale of goods. This rule encourages the buyer to take every possible care in order to check the quality and fitness of the goods which he is going to buy. A buyer is given reasonable time to satisfy his mind regarding the goods and the intention of the seller. The scope of this rule is that, it minimizes the chances of litigation and keeps check on the seller by granting this right to the buyer.
Exceptions to the rule of Caveat Emptor;-
There have been mentioned certain exceptions where the rule of 'Buyer Beware' fails to show its implication. Some are following;
A. Purchase by Description;-
When the goods have been purchased by description, the rule of caveat emptor does not apply. It becomes clear to the buyer when he hears about the quality and fitness of the goods from the seller. The seller may point out if there is any flaw in the goods.
B. Purchase by Sample;-
Even when the goods are bought after examining a sample and they get matched with the sample, rule of caveat emptor is not applicable.
C. Fitness for Purpose;-
When the buyer has informed the seller about the purpose for buying certain goods and he trusts upon the skill and judgment of the seller in arranging such goods, then the rule of 'Buyer Beware' won't be applicable.
D. Trade Name;-
When the goods are bought under certain trade name, there is no implied condition to its fitness for any particular purpose.
E. Mercantile Quality;-
The rule does not apply when goods are purchased by description from a seller who deals in with goods of that description. This is because there is then an implied condition that the goods shall be of mercantile quality.
F. Consent by Fraud;-
This rule is not applicable where the seller intentionally makes false statement or conceals
something about the goods.
