Doctrine of Caveat Emptor

and Caveat Venditor

Submitted to
Sir Rizwan Hussain

Presented by
Ata Mohiuddin Ahmed
Ayesha Zafar
Fatima Khan
Syeda Fizza Rizvi
What is Caveat Emptor ?
• Let the Buyer Beware (Latin)
• Caveat Emptor is a warning that notifies a buyer that the goods
he/she is buying are “as is,” or subject to all defects.
• It summarizes the concept that a buyer must examine, judge and test
the Product considered for purchase.
• It is applied when a product doesn’t have any legal binding warranty.
Features of the doctrine
• After buying ,If the buyer finds any defects the seller isn’t liable to
pay.
• If new defects arise after the purchase and were not at the time of
purchase ONLY then the seller is liable to pay.
• The seller is not responsible if the object is bought for a specific
purpose and is not suitable for it.
• All the risk is of the buyer unless stated in the agreement.
• Due diligence is the commonly used practice of the doctrine.
Duties of the buyer
• To examine and check the goods for defects Before buying them.
• Should have some knowledge of the product.
• Should ask for specific receipts and invoice of the purchase.
• Should be aware of the risks involved in the purchase.
• Only accept goods which is in proper form and only what agreed.
Exceptions to the doctrine
• If sold by fraud.
• When a buyer relies on the skill and knowledge of the seller.
• Sale by description
• Concealed latent defects
• Unfair dealings
• Misleading/ misrepresentation about the quality.
• Consumer protection laws.
What is Caveat Venditor?
• Let the seller beware (latin)
• Caveat venditor is the doctrine which implies that the seller should be
aware, generally there is a legal presumption that a seller makes
certain warranties unless the buyer and the seller agree otherwise.
that certain warranty is an implied warranty of merchantability on the
product.
• As when u buy a pen it has an implied warranty that it will write.
• If both the buyer and the seller are negotiating from equal bargaining
positions, however, the doctrine of caveat emptor would apply.
Difference between
Caveat Emptor
• For the buyers
• Does not have any warranty
• Used mostly when buying
property, used goods or goods
that needs checking.
• Buyer relies only on his own
knowledge and must examine as
much as he/she can.
Caveat Venditor
• For the sellers
• Implied warranty is given
• Given on almost all the
commercial branded goods.
• Buyer relies on the expertise of
the seller. as some goods need
specific knowledge. e.g. Jewelry
Thank you !