Caveat Emptor Exceptions

Sociology | Mercantile Law | International Law | International Relations

Exceptions to the rule of Caveat Emptor
There have been mentioned certain exceptions where the rule of ‘Buyer Beware’ fails to show its implication. Some are following;

A. Purchase by Description
When the goods have been purchased by description, the rule of caveat emptor does not apply. It becomes clear to the buyer when he hears about the quality and fitness of the goods from the seller. The seller may point out if there is any flaw in the goods.

B. Purchase by Sample
Even when the goods are bought after examining a sample and they get matched with the sample, rule of caveat emptor is not applicable.

C. Fitness for Purpose
When the buyer has informed the seller about the purpose for buying certain goods and he trusts upon the skill and judgment of the seller in arranging such goods, then the rule of ‘Buyer Beware’ won’t be applicable.

D. Trade Name
When the goods are bought under certain trade name, there is no implied condition to its fitness for any particular purpose.

E. Mercantile Quality
The rule does not apply when goods are purchased by description from a seller who deals in with goods of that description. This is because there is then an implied condition that the goods shall be of mercantile quality.

F. Consent by Fraud
This rule is not applicable where the seller intentionally makes false statement or conceals something about the goods.