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Monday, 15 August 2011

Write a comprehensive note on Caveat Emptor Doctrine or Explain the principle of Caveat Emptor with exception

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.

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