The Doctrine Caveat of Emptor and Exemption
The doctrine of "caveat emptor" is a Latin term that translates to "let the buyer beware." This principle places the onus on the buyer to perform due diligence before making a purchase. Under this doctrine, the buyer assumes the risk for any defects in the goods purchased, unless the seller has made specific warranties or representations about the goods. Definition of Caveat Emptor The doctrine of caveat emptor is encapsulated in Section 16 of the Sale of Goods Act, 1930, which states that there is no implied warranty or condition as to the quality or fitness for any particular purpose of goods supplied under a contract of sale, except in certain circumstances. Exemptions to Caveat Emptor There are several exceptions to the doctrine of caveat emptor where the seller may be held liable for defects in the goods: 1. Fitness for Purpose : If the buyer makes known to the seller the particular purpose for which the goods are required, and relies...