Lab Descriptive Ques

1.State the doctrine of "caveat emptor" and exceptions to it.
The doctrine of Caveat Emptor is an integral part of the Sale of Goods Act. It translates to “let the buyer
beware”. This means it lays the responsibility of their choice on the buyer themselves.
Let us see an example. A bought a horse from B. A wanted to enter the horse in a race. Turns out the horse
were not capable of running a race on account of being lame. But A did not inform B of his intentions. So B will
not be responsible for the defects of the horse. The Doctrine of Caveat Emptor will apply.
Exceptions to the Doctrine of Caveat Emptor

The doctrine of caveat emptor has certain specific exceptions. Let us take a brief look at these exceptions.
1] Fitness of Product for the Buyer’s Purpose
When the buyer informs the seller of his purpose of buying the goods, it is implied that he is relying on the
seller’s judgment. It is the duty of the seller then to ensure the goods match their desired usage.
Say for example A goes to B to buy a bicycle. He informs B he wants to use the cycle for mountain trekking. If
B sells him an ordinary bicycle that is incapable of fulfilling A’s purpose the seller will be responsible. Another
example is the case study of Priest v. Last.
2] Goods Purchased under Brand Name
When the buyer buys a product under a trade name or a branded product the seller cannot be held responsible
for the usefulness or quality of the product. So there is no implied condition that the goods will be fit for the
purpose the buyer intended.
3] Goods sold by Description
When the buyer buys the goods based only on the description there will be an exception. If the goods do not
match the description then in such a case the seller will be responsible for the goods.
4] Goods of Merchantable Quality
The section 16 (2) deals with the exception of merchantable quality. The sections state that the seller who is
selling goods by description has a duty of providing goods of merchantable quality, i.e. capable of passing the
market standards.
So if the goods are not of marketable quality then the buyer will not be the one who is responsible. It will be the
seller’s responsibility. However if the buyer has had reasonable chance to examine the product, then this
exception will not apply.
5] Sale by Sample
If the buyer buys his goods after examining a sample then the rule of Doctrine of Caveat Emptor will not apply.
If the rest of the goods do not resemble the sample, the buyer cannot be held responsible. In this case, the
seller will be the one responsible.
For example, A places an order for 50 toy cars with B. He checks one sample where the car is red. The rest of
the cars turn out orange. Here the doctrine will not apply and B will be responsible.
6] Sale by Description and Sample
If the sale is done via sample as well as a description of the product, the buyer will not be responsible if the
goods do not resemble the sample and/or the description. Then the responsibility will fall squarely on the seller.
7] Usage of Trade
There is an implied condition or warranty about the quality or the fitness of goods/products. But if a seller
deviated from this then the rules of caveat emptor cease to apply. For example, A bought goods from B in an
auction of the contents of a ship. But B did not inform A the contents were sea damaged, and so the rules of
the doctrine will not apply here.
8] Fraud or Misrepresentation by the Seller
This is another important exception. If the seller obtains the consent of the buyer by fraud then caveat emptor
will not apply. Also if the seller conceals any material defects of the goods which are later discovered on closer
examination then again the buyer will not be responsible. In both cases, the seller will be the guilty party.
It is specifically defined in Section 16 of the act “there is no implied warranty or condition as to the quality or the
fitness for any particular purpose of goods supplied under such a contract of sale”
2. When is a seller of goods deemed to be an unpaid seller? What are his rights against (i) the goods,
and (ii) the buyer personally?
3. What are the rules of law relating to time and place of performance of a contract?
4. Discuss the doctrine of public policy. What are those agreements which are opposed to public
policy?
5. What are the various ways in which a contract may be discharged?
6. What do you understand by impossibility of performance?
7. Under what circumstances is a party entitled to specific performance?
8. Explain the term 'Consideration' and state the exceptions to the rule: "No consideration, No
contract."
9. "In quasi-contracts, the promise to pay is implied by law and is not based on any express
agreement". Explain giving illustrations.
10. Explain the nature of contract of sale of goods and bring out clearly the distinction between a sale
and an agreement to sell.

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1.State the doctrine of "caveat emptor" and exceptions to it.

Exceptions to the Doctrine of Caveat Emptor

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