Caveat emptor – Let the buyer beware.
Meaning of Caveat Emptor
Caveat Emptor is a Latin term that means “Let the buyer beware.”
It is a legal principle in contract and commercial law which states that the buyer alone is responsible for checking the quality and suitability of goods before making a purchase.
If the goods turn out to be defective or unsuitable, the buyer cannot hold the seller liable, unless there is misrepresentation, fraud, or express warranty.
Scope
General Rule:
In a sale of goods, the buyer must exercise due diligence.
The buyer should inspect the goods and verify their quality, quantity, and specifications.
Exceptions:
Caveat emptor does not apply in certain cases:
Fraud or misrepresentation by the seller.
Express warranty or guarantee about the goods.
Hidden defects (latent defects) that could not have been discovered by ordinary inspection.
Legal Position in India
Section 16–19 of the Sale of Goods Act, 1930 modifies the principle of caveat emptor in certain situations:
S.16: Implied condition as to title — seller must have the right to sell.
S.17: Goods must correspond with description.
S.18: Goods must be of merchantable quality and fit for purpose.
S.19: Sale by sample — goods must correspond to sample.
Thus, caveat emptor is not absolute; statutory provisions protect buyers against unfair practices.
Case Laws
Chandel & Co. vs. Union of India (1968)
Principle reaffirmed that buyers are responsible for examining goods before purchase.
Buyer cannot claim defects which are obvious and could have been discovered through reasonable inspection.
Sundaram Finance Ltd. vs. Abdul Samad & Co. (1977)
Court held that caveat emptor applies unless there is fraud or misrepresentation.
Buyers must exercise caution and inspect goods before accepting them.
Ashbury Railway Carriage & Iron Co. Ltd. vs. Riche (1875, UK, influential in India)
Reinforced that the buyer bears the risk once the contract is made unless seller provides warranty or concealment is proved.
Practical Implications
Buyers should:
Inspect goods carefully.
Check for defects and verify specifications.
Ask for warranties or guarantees if needed.
Sellers should:
Disclose all relevant information about goods.
Avoid misrepresentation to prevent liability.
Summary
Caveat emptor = Let the buyer beware.
Buyer’s responsibility: Check quality, suitability, and fitness of goods.
Exceptions: Fraud, misrepresentation, express warranty, or hidden defects.
Modified by statutory provisions like the Sale of Goods Act, 1930.
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