Doctrine of Caveat Emptor and Caveat Venditor

Doctrine of Caveat Emptor The maxim of Caveat Emptor means ´let the buyer beware. According to the doctrine of Caveat Emptor ´It is the duty of the buyer to be careful while purchasing goods of his requirement and, in the absence of any enquiry from the buyer, the seller is not bound to disclose every defect in goods of which he may be aware. Salient features of the doctrine  It is the duty of the buyer to examine the goods to his satisfaction before he buys them.  When a buyer discovers some defects in goods after buying,the seller is not liable for such defects.  It is the duty of the buyer not to “take a chance” but to „take care‟ and examine the Salient features of the doctrine goods before he buys them.  It should noted that seller is not responsible if the goods are not suitable for the object for which they have been purchased.  The seller‟s liability arises only when there are latent defects in goods which were not apparent at the time of purchase.  Unless there is an agreement to the contrary,the risk involved in a purchase is of the buyer. Key points for the buyer  The buyer should ask for the invoice,payment receipt and guarantee card.  The buyer should read all the instructions carefully written on the label of the product before use.  The buyer should be aware of availability of similar goods in the market.  The buyer should be aware of the risks involved in the use of the product. Key points for the buyer  The buyer should buy ISI mark goods and other certified goods.  The buyer should be fair in dealing with the seller.  The buyer should abide by the terms and conditions of the contract with seller.  The buyer should raise his voice against complaint about goods at proper forum. Exception to doctrine of caveat emptor  Where the buyer relies on the skill and judgement of the seller.  Fitness for a particular purpose.  Sale by description  Sale by fraud  Latent defects Concept of caveat venditor  caveat venditor - Latin for "let the seller beware." It refers to the sale of something of value in which the seller does not disclaim responsibility prior to the sale. In this situation, the seller assumes liability to the buyer for any deviations from the specifications stated in the written sales contract. Key points of doctrine of caveat venditor  The seller must have knowledge of implied conditions and warranties.  The seller will be able for loss on account of sale,if the goods do not come up to the standard required by law even though he has taken all possible care.  The seller must disclose all the facts about the product in order to avoid dispute. Key points of doctrine of caveat venditor  The seller should not use fraud tactics for selling the goods.  The seller is responsible for such defects which are not apparent to a person of normal intelligence. Consumer sovereignty  Consumer sovereignty means that buyers ultimately determine which goods and services remain in production. While businesses can produce and attempt to sell whatever goods they choose, if the goods fail to satisfy the wants and needs, consumers decide not to buy. If the consumers do not buy, the businesses do not sell and the goods are not produced.