Caveat Emptor, Implied Conditions and Warranties: BY: Mohan Singh 144
Caveat Emptor, Implied Conditions and Warranties: BY: Mohan Singh 144
Caveat Emptor, Implied Conditions and Warranties: BY: Mohan Singh 144
CAVEAT EMPTOR
Caveat Emptor is a Latin phrase meaning "let the buyer beware. Let the buyer beware: the principle that the seller of a product cannot be held responsible for its quality unless it is guaranteed in a warranty. For example, you buy a used car which you are told is in perfect condition, but it immediately breaks down OR you buy a house, but it has termites. It merely summarizes the concept that a purchaser must examine, judge, and test a product considered for purchase himself or herself.
EXAMPLE
Suppose Ram bought 10 cows from a cattle broker. Out of those 10, 2 cows had defects. However, Ram did not know this because he didnt check all 10 cows though he paid for them. Guess what happened? The 2 infected cows died within three days of the purchase. Now, as there was no tacit condition that the cows would be in great health at the time of the sale. Ram cannot hold the cattle broker as responsible for having sold him those infected cows. It was Rams basic duty to check the health of those cows and not expect the cattle broker to state all the defects.
Where the buyer makes known to the seller the purpose for which he requires the goods and relies upon the sellers skill and judgment but the goods supplied are unfit for the specified purpose.
Warranty:
A warranty is a stipulation collateral to the main purpose of the contract, breach of which gives rise to a claim for damages, but not a right to reject the goods and treat the contract as repudiated. [Sec 12(3)]
CONDITIONS vs WARRANTIES
Two cases involving opera singers show the difference between conditions and warranties .
She agreed to sing in an opera starting on 28 November. However, she became ill and was unable to sing until 4 December. The opera company had to hire another singer so that the opera could start on 28 November. They could only get another singer if they hired her for all the performances of the opera.
They did this and refused the services of Mrs Anna once she was better Mrs. Poussard raised a court action to try to make the company pay her.
However, the court said that Mrs. Anna breached a CONDITION of the contract when she was unable to perform on 28 November. This was a basic term of the contract.
As to Title
As to Sample
As to Quality or Fitness
As to Merchantability
As to Wholesomeness
IMPLIED WARRANTIES
Quiet Enjoyment Freedom from Encumbrance Dangerous Nature Usage of Trade
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