Doctrine of Caveat Emptor: The maxim of caveat emptier means Let the buyer beware according

to this it is the duty of the buyer to be careful while purchasing goods of his requirement, and in the
absence of any inquiry from the buyer, the seller is not bound to disclose every defect in goods of
which he may be aware.
The buyer must examine the goods thoroughly and must see that the goods he buys are suitable for
the purpose for which he wants them. If the goods turn out to be defective the buyer cannot sue the
seller because there is no implied undertaking by the seller that he shall supply goods to suit the
buyers purpose. If the buyer depends on his own skill and makes bad choice he must suffer in the
absence of any misrepresentation or fraud or guarantee by the seller.
Example: A buys a horse from B for riding but did not mention this. The horse was found fit only for
carriage. A cannot claim damage.
However caveat emptor is subject to following exceptions:

Exceptions to the Doctrine of Caveat Emptor

The following are some of the exemptions to doctrine of Caveat Emptor.

1. Implied Condition regarding Quality or Fitness

When the seller is aware of the purpose for which the buyer requires the
product and when the buyer relies on the judgement and skill of the seller,
there is an implied condition that the product purchased serves the purpose
for which it was bought. When the goods are sold under a trade name or
patent mark, this condition does not apply.

2. Sale of Goods by Description

When the buyer purchases products from the seller who sells such class of
goods, there is an implied condition that the product is of merchantable
quality.

3. Usage of Trade
Proof of reasonable usage or custom of trade may also establish an implied
condition with regard to quality or fitness of goods for a particular purpose.

4. Consent by Fraud

The doctrine of Caveat Emptor shall not apply to all those purchases, which
have been made by a buyer under a contract where the seller obtained his
consent by fraud. A seller, who is guilty of fraud, shall have no protection of
the doctrine of caveat emptor.

5. Sale under a Patent or Trade name

In the case of a contract of sale of specified goods under its patent or trade
name, there is an implied condition that the product is fairly fit for any
specific purpose.

6. Sale by Sample
When a buyer, having satisfied with the quality of the sample offered by the
seller, purchases in bulk, the Doctrine of Caveat Emptor will not apply when
he finds defects in the bulk or if the bulk does not correspond with the
product sample offered to him. The Doctrine of Caveat Emptor will not apply
if the buyer did not have a chance to verify the bulk with the sample, of if
there is any hidden damaged product.

7. Misrepresentation
Where the seller has made a false representation relating to the goods and
the buyer has relied upon it, the doctrine of Caveat Emptor will not apply.
Such a contract being voidable at the option of the innocent party, the buyer
has a right to rescind the contract.