Short Notes on Caveat Emptor

Caveat emptor is a Latin term meaning "let the buyer beware". It is a general rule of law that a purchaser assumes the risk of his/her purchase. The intent of the rule is to place a duty of care on the buyer in selecting an item and putting forth appropriate inquiry before completing the sale. In this way, a seller is also protected from liability for buyer's remorse.

The Caveat emptor principle, has been followed and adopted by the English law for centuries. The meaning of the principle was laid down by Justin Reagan in Spivey, where he said that: "Caveat emptor, let the buyer beware, has been part of the English language since 1523, when it was used in connection with the sale of a horse, which might have been ridden upon and be tame or might be wylde. If wylde, it was not the merchant who had to beware, but caveat emptor be ware thou buyer." 

The caveat emptor had been seen as a powerful tool to the extent that many jurisdictions have tried to overpower or neutralize it by establishing consumer protection or sale of goods legislation but when it comes to issues concerning land, the principle still applies.

Towards the end of the 19th century, Caveat Emptor was still very much breathing as a general rule but the judiciary were going in to some extent a different direction to go to the length of protecting a buyer as caveat emptor offers buyers very little protection. This inevitably led to the drafting of the Sale of Goods Bill. (CMA DECEMBER– 2012 EXAMINATION)