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Caveat Emptor Doctrine Explained

The doctrine of caveat emptor, or "buyer beware", established the principle that sellers bore no responsibility for product quality unless expressly warranted. It originated in 1603 when a goldsmith sold a fake "bezar stone" and was not held liable since he did not explicitly warrant it. Exceptions developed for implied warranties of fitness if the seller knew the purpose or if the goods were not of merchantable quality. However, the Consumer Protection Act has provided more protections for hapless buyers against unscrupulous sellers compared to the doctrine of caveat emptor.

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Pankaj Dogra
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142 views10 pages

Caveat Emptor Doctrine Explained

The doctrine of caveat emptor, or "buyer beware", established the principle that sellers bore no responsibility for product quality unless expressly warranted. It originated in 1603 when a goldsmith sold a fake "bezar stone" and was not held liable since he did not explicitly warrant it. Exceptions developed for implied warranties of fitness if the seller knew the purpose or if the goods were not of merchantable quality. However, the Consumer Protection Act has provided more protections for hapless buyers against unscrupulous sellers compared to the doctrine of caveat emptor.

Uploaded by

Pankaj Dogra
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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Doctrine of

Caveat Emptor
Moral of the story
Section 16

“subject to the provisions of this Act or
of any other law for the time being in
force, there is no implied warranty or
conditions as to the quality or fitness for
any purpose of goods supplied under
contract of sale”.
The longstanding doctrine of caveat emptor, or "let the buyer
beware", was first adopted by the English court system in the
early 17th century. The doctrine proposed that a "seller bore
no responsibility at all for the quality of the product he was
selling unless he expressly guaranteed it or give a warranty to
the buyer."

The doctrine was established in 1603 after a goldsmith sold a


stone affirming that it was a "bezar stone," more commonly
known as the gallstone of a goat, which at the time held
medicinal value. The buyer claimed that the seller had falsely
represented the value of the stone. The Court held that the
"bare affirmation that it was a bezar stone, without warranting
it to be so, is no cause of action."
The Court correctly stated that every seller will say that his
wares are good to a potential buyer when trying to
consummate a sale.
Where it applies?
 It applies whenever the buyer voluntarily
chooses what he buys but it has no
application in any case in which the seller
has under taken and the buyer has left it to
the seller, to supply goods to be used for a
proposed known to both at the time of the
sale.
Exceptions to the rule
 There is an implied condition that the
goods shall be reasonably fit for the
purpose ,however, there is no such
implied condition where specific article is
sold under its patent or trade name.
[Bombay Burmah trading corporation v.
Agha Mohammad.(1911) 34.Mad.453
(PC)].
 Where the seller makes a false
representation amounting to fraud
and the buyer realize on it or where
the seller conceals that defect in the
goods which can not be discovered
on a reasonable examination, the
rule will not apply.
 Where goods are bought by description
from the seller who deals in such goods
there is an implied condition that the
goods shall be of a ‘merchantable’ quality.
Hapless buyers…!! now not
 Consumer’s protection act

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