Page 146 - DMGT407Corporate and Business Laws

Unit 5: Law of Sale of Goods

Notes
sold and all the information relating to the usage of the goods. This obligation of the
seller, it is submitted, should be irrespective of his own knowledge and skill, because
what matters is not what he has but what he is expected to have. Therefore it can be
concluded from the above analysis that the rule of caveat emptor is dying a slow death and
is being taken over by the subsequent rule of caveat venditor, the change being attributed
to a more consumer oriented market wherein commercial transactions are being
encouraged. Such a change, it is submitted will not only help create an appropriate balance
between the rights and obligations of the seller and the buyer. But it should be noted that
if this trend of change is taken too far, we might end up in retarding transactions due to the
approach then becoming extremely pro-buyer who might misuse the protection under
law.

Question
Is the concept of ‘Caveat Emptor’ really dying? Discuss.

Source: legalserviceindia.com
5.11 Summary

A contract of sale is a contract whereby the seller transfers or agrees to transfer the property
in goods to the buyer for a price.

Sale is to be distinguished from an agreement to sell.
Where under a contract of sale, the property in goods is transferred from the seller to the
buyer, it is a called a sale. On the other hand, an agreement to sell means a contract of sale
under which the transfer of property in goods is to take place at a future date or subject to
conditions thereafter to be fulfilled.

Goods may be classified as existing, future and contingent.
In contract of sale, parties make certain stipulations. All stipulations are not treated on the
same footing. These stipulations are technically known as conditions and warranties.
These conditions and warranties may be express or implied.
The doctrine of caveat emptor is a fundamental principle of the law of sale of goods. There
are however, certain exceptions to the doctrine.

The Act contains a number of rules for passing the property in the goods from the seller to
the buyer.

The contract of sale of goods is to be performed, as any other contract.
The act provides for the duties of the seller and the buyer, and rules regarding delivery of
goods.

In case the buyer fails or refuses to pay for the goods, the seller is known as unpaid seller,
and he is given certain rights by the law.

5.12 Keywords

Condition: It is a stipulation essential to the main purpose of the contract, the breach of which
gives rise to a right to treat the contract as repudiated.
Delivery: It is defined as a voluntary transfer of possession from one person to another.

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