LET BUYER BEWARE

CAVEAT EMPTOR
 Implied condition that the goods
must correspond with the
description
S 15: If the contract is for the sale of
goods by description, there is an
implied condition that the goods
must correspond with the
description.
SALE BY DESCRIPTION S 15
Sale of goods by description covers
all cases where the buyer has not
seen the goods but is relying on the
description alone (the contract is
made through telephone)
 Sale by description may be
divided into
Sales of unascertained or future
goods
Sales of specified goods, bought by
the buyer in reliance upon the
description given
 Case:NAGURDAS
PURSHOTUMDAS V. MITSUI
BUSSAN KAISHA
For a specific goods, it particular applies
when the buyer has not seen the goods,
such as mail order or sale for catalogue.
Facts: Flour war ordered described as the
same as our previous contracts.
Flour identical to quality was delivered but
did not bear the same well-known trade
mark.
Court: It did not comply with the
description.
 Sometimes where specific goods have
been seen, there can still be a sale by
description.
Eg: a sale in a self-service shop.
BEALE v. TAYLOR
Seller of car advertised Herald
Convertible, White, 1961 The buyer
viewed the car before he agreed to buy.
Later, he discovered that the front part
of the car was part of an earlier model.
 Implied condition as to
fitness for particular
purpose
S16: there has no implied
condition/warranty as to the fitness
for purpose.
Common Law: Caveat Emptor let
the buyer beware
The rule applies is caveat emptor
where the buyer must exercise care
in making purchases. If he does not,
he must bear the consequences.
 S 16(1) - no implied warranty or condition as to the
quality or fitness for any particular purpose of goods
supplied under a contract of sale, except as follows:
Where the buyer, expressly or by implication
makes known to the seller the particular purpose
for which the goods are required.the buyer
relies on the sellers skill or judgmentthere is an
implied condition the goods shall be reasonably
fit for such purpose.
This provision is not applicable if the contract of
sale is under patent or trademark
 Where the goods are bought by
description from a seller who deals in
good of that description, there is an
implied condition that the goods shall
be of merchantable quality
If the buyer has examined the goods,
there shall be no implied conditions
as regards defects which such
examination ought to have revealed.
 To make condition as to fitness for purpose
applies in contract of sale of goods,certain
condition must be fulfilled, namely:
The buyer must make known (expressed/implied)
to the seller the purpose of which the goods are
required at or before the contract was made;
The buyer is relying on the sellers skill/judgment.
The goods are specific, they must not be bought
under their patent or trade name.
If the goods have only one purpose, no further
indication required.
If the goods are to be used for special purpose, it
should be clearly indicated so.
 Caveat emptoris a Latin term that means
"let the buyer beware." Similar to the
phrase "sold as is," this term means that
the buyer assumes the risk that a
product may fail to meet expectations or
have defects. In other words, the
principle of caveat emptor serves as a
warning that buyers have no recourse
with the seller if the product does not
meet their expectations.
 The term is actually part of a longer
statement:Caveat emptor, quia ignorare
non debuit quod jus alienum emit("Let a
purchaser beware, for he ought not to be
ignorant of the nature of the property which
he is buying from another party.")
Theassumption is that buyers will inspect
and otherwise ensure that they are
confident with the integrity of the product
(or land, to which it often refers) before
completing a transaction. This does not,
however, give sellers the green light to
actively engage infraudulent transactions.
 Caveat Emptor in Practice

Under the principle of caveat emptor, for example, a

consumer who purchases a coffee mug and later
discovers that it has a leak is stuck with thedefective
product. Had they inspected the mug prior to the sale,
they may have changed their mind.
A more common example is a used car transaction
between two private parties (as opposed to a
dealership, in which the sale is subject to an implied
warranty). The buyer must take on the responsibility of
thoroughly researching and inspecting the car
perhaps taking it to a mechanic for a closer look
before finalizing the sale. If something comes up after
the sale, maybe a transmission failure, it is not the
seller's responsibility. Garage sales offer another
example of caveat emptor, in which all sales are final
and nothing is guaranteed.