AB Cloth House, a firm dealing with the wholesale and re tail buying and selling of various kinds of clothes, customized as per the requirement of…

CA Foundation · Business Laws · RTP · September 2024
AB Cloth House, a firm dealing with the wholesale and re tail buying and selling of various kinds of clothes, customized as per the requirement of the customers. They dealt with Silk, Organdie, cotton, khadi, chiffon and many other different varieties of cloth. Mrs. Reema, a customer, came to the shop and asked for a specific type of cloth suitable for making a suit for her daughter’s birthday. She specifically mentioned that she required cotton silk cloth which is best suited for the purpose. The Shop owner agreed and arranged the cloth pieces cut into as per the buyers’ requirements. When Reema went to the tailor to get the suit stitched, she found that seller has supplied her cotton organdie material, cloth was not suitable for the said purpose. It was heavily starched and not suitable for making the suit that Reema desired for. The Tailor asked Reema to return the cotton organdie cloth as it would not meet his requirements. The Shop owner refused to return the cloth on the plea that it was cut to specific requirements of Mrs. Reema and hence could not be resold . With reference to the doctrine of "Caveat Emptor' explain the duty of the buyer as well as the seller. Also explain whether Mrs. Reema would be able to get the money back or the right kind of cloth as per the requirement?

Suggested Answer and Working Notes:

Duty of the buyer according to the doctrine of “Caveat Emptor”: In case of sale of goods, the doctrine ‘Caveat Emptor’ means ‘let the buyer beware’. When sellers display their goods in the open market, it is for the buyers to make a proper selection or choice of the goods. If the goods turn out to be defective, he cannot hold the seller liable. The seller is in no way responsible for the bad selection of the buyer. The seller is not bound to disclose the defects in the goods which he is selling. Duty of the seller according to the doctrine of “Caveat Emptor”: The following exceptions to the Caveat Emptor are the duties of the seller: (i) Fitness as to quality or use (ii) Goods purchased under patent or brand name (iii) Goods sold by description (iv) Goods of Merchantable Quality (v) Sale by sample (vi) Goods by sample as well as description (vii) Trade usage (viii) Seller actively conceals a defect or is guilty of fraud Based on the above provision and facts given in the question, it can be concluded that Mrs. Reema is entitled to get the money back or the right kind of cloth as required to serve her purpose. It is the duty of the seller to supply such goods as are reasonably fit for the purpose mentioned by the buyer. [Section 16 (1) of the Sale of Goods Act,1930].

Topics: The Sale of Goods Act, 1930

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