Doctrine of Caveat Emptor

• Introduction: In commercial transaction seller and buyer of the goods have to protect their own interests.  A contract of sale or agreement to sale creates certain rights and obligations on both i.e. seller and buyer.  Both of them have to take every care to protect their rights and interests.  After contract of sale, No one blame each other for anything, which may affect the interest of other.
• Meaning Caveat Emptor: The meaning of the maxim is "buyer be aware".  In a contract of sale of goods the seller is under no duty to disclose the whole truth about the goods sold.  Therefore when a person buys some goods, he must examine them thoroughly.  If the goods turn out to be defective or do not suit his purpose or if he depends upon his own skill or judgment and makes a bad selection, he cannot blame anyone except him.

It is a duty of the buyer to protect his own interest for which he has to take due care and attention in purchasing the goods, which he intends to purchase in future.  It is the duty of the buyer towards the seller to provide information of goods of his requirement.  The seller is bound to supply the goods as per the requirement of buyer. The principle of caveat emptor is applicable when there is purchase is specific goods upon which the buyer can exercise his own judgment.  The principle is applicable where buyer may select goods on his own responsibility buy himself e.g. purchase of horse, picture etc.

• Conclusion: The maxim caveat emptor means 'let the buyer beware'.  In contract of sale for goods the seller is under no duty to disclose the defect in the goods sold.  Therefore when a person buys some goods he must examine them thoroughly.  If the goods turned out to be defective then he has to suffer the consequences.  But because of radical change in trade and commerce, as it has assumed global dimension, buyer is not in position to examine the goods beforehand.  Therefore doctrine of caveat emptor has certain important exceptions, which protect buyer.  The exceptions are more important than the rule itself.