What is basic concept of Caveat emptor with reference of Indian law?

 "Caveat emptor" is a Latin term that translates to "let the buyer beware." It is a principle in contract law that places the responsibility on the buyer to perform due diligence before making a purchase. In essence, it means that the buyer must take responsibility for the quality and condition of the goods they are purchasing and cannot hold the seller liable for any defects discovered after the purchase, provided there was no fraud involved.

Caveat Emptor in Indian Law

In the context of Indian law, the principle of caveat emptor has evolved over time, particularly with the advent of consumer protection laws that provide more rights a nd safeguards for buyers. Here are some key aspects of how caveat emptor is treated in Indian law:

1. Sale of Goods Act, 1930

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How to ascertain that sale of goods has taken place?

 Section 18 of the Sale of Goods Act
postulates that when a contract for sale is in respect of

unascertained goods no property in the goods is transferred to
the buyer unless and until the goods are ascertained. Even
when the contract for sale is in respect of specific or ascertained
goods, the property in such goods is transferred to the buyer
only at such time as the parties intend. The intention of the
parties in this regard is to be gathered from the terms of the
contract, the conduct of the parties and the circumstances of the
case. Even if the motor vehicles were to be treated as specific
and ascertained goods at the time when the sale invoice with all
the specific particulars may be issued, according to Section 21 of
the Sale of Goods Act, in case of such a contract for sale also,
when the seller is bound to do something to the goods for the
purpose of putting them into a deliverable state, the property
does not pass until such thing is done and the buyer has notice
thereof. In the light of circumstances governing motor vehicles
which may safely be gathered even from the Motor Vehicles Act
and the Rules, it is obvious that the seller or the
manufacturer/dealer is bound to transport the motor vehicle to
the office of registering authority and only when it reaches there
safe and sound, in accordance with the statutory provisions
governing motor vehicles it can be said to be in a deliverable
state and only then the property in such a motor vehicle can

pass to the buyer once he has been given notice that the motor
vehicle is fit and ready for his lawful possession and registration.
REPORTABLE
IN THE SUPREME COURT OF INDIA
CIVIL APPELLATE JURISDICTION
CIVIL APPEAL NO. 2446 OF 2007

Commissioner of Commercial  Taxes, Thiruvananthapuram, Kerala Vs M/s K.T.C. Automobiles 

Dated;January 29, 2016.
SHIVA KIRTI SINGH, J.

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Whether there can be transaction of sale of goods between agent and principal?

All the above referred terms and conditions show nothing but authority of respondent no. 2 to sell the goods in it's own right and pass on the title to the goods in it's own right to the specified buyer. The essence of contract of sale under Section 4 of The Sale of Goods Act, 1930 lies in transfer of the property in goods by the seller to a buyer for a price. Whenever the seller transfers or agrees to transfer the property in goods to a buyer for a price, the contract is of sale. As against this, in a contract under which a relationship of agent and principal is created, an agentwp4383.08.odt cannot deal with the goods as if they are his own goods and cannot pass on the title in his own right to the buyer for a price. These attributes of agency are absent in the said agreements which rather fulfill the characteristics of contract of sale and, therefore, the argument that respondent no. 2 acted only as an agent for importing edible oil on behalf of Government and that there was no sale effected between respondents 2 and 3, cannot be accepted.

Bombay High Court

Mumbai Agricultural Produce ... vs The Hon\'Ble Minister For ... on 20 July, 2015

Citation;AIR 2015 Bombay 234

CORAM : Naresh H. Patil and S.B. Shukre, JJ.


Read full judgment here;click here

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Whether right of examination of goods and right of rejection of goods are two statutory rights of buyer?

In fact, it may be seen that the right of examination of the
goods and the consequent right of rejection of the goods which are two
statutory rights of the respondent as the buyer would be defeated because
the respondent would not have reasonable opportunity of examining the
goods and a reasonable time to reject the goods outside the period of 30
days specified in Clause 4.2(b) of the Contract. Such an agreement would
be void under Section 23 of the Contract Act because if permitted it would
defeat the provisions contained in Sections 41 & 42 of the Sale of Goods
Act.

IN THE HIGH COURT OF JUDICATURE AT BOMBAY
ORDINARY ORIGINAL CIVIL JURISDICTION
ARBITRATION PETITION NO. 398 OF 2014
JSW Steel Ltd. .. Petitioner
Vs.
AI Ghuriar Iron & Steel LLC .. Respondent

CORAM : MRS. ROSHAN DALVI, J.

Date of pronouncing the Judgment : 20 th AUGUST, 2014 .
Citation;2015(2) ALLMR60,AIR 2015(NOC)448 BOM
Read original judgment; click here

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