Q.What is the doctrine of Caveat Emptor? State its exceptions.

Part (a) — Caveat Emptor and its exceptions (Sale of Goods Act, 1930)

Issue: (i) Can Mr. J refuse to replace the ill-fitting marble by pleading caveat emptor, and what are the duties of buyer and seller? (ii) Can M/S Makrana Marbles be compelled to replace the damaged parking-area tiles?

Rule: Caveat emptor (Sec 16) means it is the buyer's duty to satisfy himself that the goods suit his purpose; ordinarily the seller is not bound to disclose defects. But this rule has important exceptions, chiefly:

• Sec 16(1) — fitness for buyer's purpose: Where the buyer expressly or impliedly makes known to the seller the particular purpose for which goods are required, so as to show that he relies on the seller's skill or judgement, there is an implied condition that the goods shall be reasonably fit for that purpose.
• Sec 16(2) — merchantable quality: Goods bought by description from a seller who deals in such goods must be of merchantable quality.
• Other exceptions: usage of trade, and fraud/misrepresentation or concealment by the seller.

Application:

• (i) The marble: Mr. K expressly made known his particular purpose — the correct mix and measurements for his newly built house — and relied on Mr. J's skill and judgement, asking him to visit and personally ascertain the sizes. This squarely attracts the Sec 16(1) exception, so caveat emptor does not protect Mr. J. Mr. J visited but, despite Mr. K's specific request, ignored the second floor whose construction pattern differed; the marble then failed to fit there precisely because of that omission. Since Mr. J undertook to measure and Mr. K relied on him, the implied condition of fitness is breached, and Mr. J cannot refuse replacement of the second-floor marble.
  • Duties of the buyer (Mr. K): make known the particular purpose, accept delivery of goods that conform, and pay the price. Duties of the seller (Mr. J): exercise the skill/judgement relied upon, supply goods reasonably fit for the disclosed purpose and of merchantable quality, and deliver as per the contract. …