Sales of Goods Act- Caveat Emptor and it's exception

Caveat Emptor

This is simple thing. It puts responsibility in certain condition on buyer to be aware of the goods are buying. It is also know as "Buyer beware". For example if you go for buying an I-phone, you know that phone sucks, but still you buy that phone by selling a kidney, and later say this phone sucks, then in this case you wont get any damages or repudiate the contract. You already knew that phone is not worth selling kidney. It's your negligence. For it neither you can ask for damages, or neither you will able to repudiate the contract

It puts some responsibility on buyer as well.

Exception to caveat emptor


What if goods that you are buying have defect which still you cannot notice ? Can you void such contract ? Will you be able to get damages ? Even though buyer should be aware and should not observe negligence in certain condition, even if he is negligent, some implied condition still will be applicable.

1) Condition as to Quality or Fitness 16(1)

When you buy a watch, you buy it for the purpose to know correct time. In this case though you have observed product carefully, and if it is not working properly then you can get it replaced. 

It's implied that the thing which you are buying will serve the purpose. It should be fit to serve the purpose.

Underwear case, Grant V Australian Knitting Mills Ltd,  here plaintiff purchased underwear for the obvious purpose. :) Underwear contained certain chemicals due to which plaintiff got some skin disease. In this case as the goods supplied were not of wearable quality. So plaintiff will get a relief.

Now, there are certain goods whose purpose we all know. For example Underwear (Who buy it for making kites out of it ?).  But sometimes you must let know the seller the purpose. As few goods can suit multiple purpose.

When you rely on the skills of seller, or the judgement of seller for your purpose, in those cases this implied condition will come into picture

Exception to above rule-Patent or trade mark

When you buy something branded, patented or trade mark, there will be no implied condition as quality of fitness. To put is simply,, if you specifically says to seller that you need "Reebok Running Shoes", or "I-phone" by Apple, in such case whether shoes/phone work fine or not, there will be no liability on seller.

Reason for this proviso is that in such cases, neither you are relying on the skills or judgement of seller, neither you are stating the purpose.Hence you cannot come back crying that the things you bought doesn't suit your purpose. 

2) Condition of Merchantable Quality

Dictionary meaning of "Merchantable"   mean good enough to be sold in market. For example, if you order onions, it should be in such condition to be traded. It should not came as damaged, smelling like a gutter.

However when buyer examined such goods, and he know that they are damaged, then no such implied condition as to marchantability will prevail.




See other implied condition here


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