Definition
Detailed Explanation
Caveat emptor is a fundamental principle of contract law, particularly in sale of goods. It places the onus on the buyer to satisfy themselves about the quality, fitness, and condition of goods before purchase.
Under the Sale of Goods Act, 1930 (Section 16), there is generally no implied warranty or condition as to quality or fitness of goods for any particular purpose. The buyer must examine the goods and rely on their own skill and judgment.
However, this principle has significant exceptions. If the buyer makes known to the seller the particular purpose for which goods are required, and relies on the seller's skill or judgment, an implied condition of fitness arises. Similarly, in sale by description or sample, there are implied conditions of merchantability.
Consumer protection legislation has significantly eroded the caveat emptor principle by imposing strict liability on sellers and manufacturers.
Essential Elements
- 1 The buyer must examine goods before purchase
- 2 No implied warranty as to quality or fitness unless excepted
- 3 The buyer bears the risk of defects they could have discovered
- 4 Does not apply to latent defects or fraud by seller
Leading Cases
Ward v. Hobbs
1878(1878) 4 App Cas 13
Relevance: Classical exposition of the caveat emptor doctrine
M/s Ashok Leyland Ltd. v. State of Tamil Nadu
2004(2004) 3 SCC 1
Relevance: Discussed the doctrine in context of consumer sales
Usage Example
"The court applied the principle of caveat emptor and held that the buyer should have inspected the property before purchase."
Synonyms
Antonyms
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