Question 3 (c)

Caveat emptor and its exceptions under the Sale of Goods Act

9 marks

Time to write
About 18 minutes
Topic
Conditions, warranties and caveat emptor

Question

Question 3 (c) · 9 marks

What does 'Caveat Emptor' mean? Explain what exceptions the Sales of Goods Act, 1930 makes to the doctrine of caveat emptor.

Reworded from the university paper; the task is the same. The original paper belongs to the University of Delhi. See DU's question bank.

Before you write

Read off the question and its marks

18 minfor 9 marks

Read from the question

  • What…?Explain…2 asks, each with its own marks below. Answer both.

Write it in this order

  1. Read; underline the asks; jot your points 1 min
  2. 1 Meaning of caveat emptor, with example 3 marks 5 min
  3. 2 Exceptions 6 marks 11 min
  4. Check: every ask answered, key terms underlined 1 min

Easy marks

  • Step 1 opens with the meaning: a one-line definition, the quickest mark in it.

Short on time? Trim steps 1 and 2 evenly rather than skip one: each is capped at its own marks.

Try it first. About 18 minutes for 9 marks. Write it out, then open the solution.

Solution

Hover or tap a marked figure, like 72,000, to see how it is made and where else it appears.

Caveat emptor. The doctrine means "let the buyer beware". Under section 16 of the Sale of Goods Act, 1930, subject to the Act's provisions there is no implied condition or warranty about the quality of goods or their fitness for any particular purpose sold; the buyer must examine the goods and satisfy himself, and if they turn out unsuitable he cannot hold the seller responsible. Example: A sells pigs to B which, being infected, give typhoid to B's healthy pigs; the seller had no duty to reveal that the pigs were unhealthy.

Picture itCaveat emptor and its exceptions under the Sale of Goods Act

1Prakash checks the scooter himself before paying—once it is his, the breakdown is too.

Caveat emptorThe buyer must examine the goods and satisfy himself.

2'It must hold out water,' he tells the paint seller, and lets him choose the tin.

Fitness for buyer's purposeRelies on the seller's skill or judgment.

3He buys rice by the sample packet: the sacks must match it.

Sale by sampleThe bulk must correspond with the sample.

4The potter slides a cloth over the crack while selling—that leak stays his fault.

Fraud or concealment by the sellerWhere the seller makes a false representation, or actively conceals a defect.

Exceptions:

  1. Fitness for buyer's purpose (s. 16(1)): where the buyer tells the seller the particular purpose for which he needs the goods and relies on the seller's skill or judgment, and the seller's business is to supply such goods.
  2. Goods bought under a patent or brand name are excluded from this: then there is no implied condition of fitness.
  3. Sale by description (s. 15): the goods must correspond with the description.
  4. Merchantable quality (s. 16(2)): goods bought by description from a seller who deals in them must be of merchantable quality.
  5. Sale by sample (s. 17): the bulk must correspond with the sample, and be free from latent defects not apparent on reasonable examination.
  6. Sale by sample as well as by description (s. 15): the goods must correspond with both; conformity with the sample does not excuse a departure from the description.
  7. Usage of trade (s. 16(3)): an implied condition or warranty as to quality may be annexed by trade usage.
  8. Fraud or concealment by the seller: where the seller makes a false representation, or actively conceals a defect, and the buyer relies on it.

Where the 9 marks sit

#ComponentMarks
1Meaning of caveat emptor, with example3
2Exceptions6
Total9
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