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.

It is the duty of the buyer to satisfy himself before buying the goods that the goods will serve the purpose for which they are being bought. If the goods turn out to be defective or do not serve his purpose or if he depends on his own skill or judgment, the buyer cannot hold the seller responsible.
However, the doctrine of CAVEAT EMPTOR does not apply in certain cases:

(i) Fitness for buyer’s purpose: Where the buyer, expressly or by implication, makes know to the seller the particular purpose for which he requires the goods and relies on the seller’s skill or judgment and the goods are of a description which it is in the course of the seller’s business to supply, the seller must supply the goods which shall be t for the buyer’s purpose.

(ii) Sale under a patent or trade name: In the case of a contract for the sale of a specied article under it's patent or other trade name, there is no implied condition that the goods shall be reasonably fit for any particular purpose.

(iii) Merchantable quality: Where goods are bought by description from a seller who deals in goods of that description (whether he is in the manufacturer or producer or not), there is an implied condition that the goods shall be of merchantable quality. But if the buyer has examined the goods, there is no implied condition as regards defects which such examination ought to have revealed.


(iv) Usage of trade: An implied warranty or condition as to qualify or tness for a particular purpose may be annexed by the usage of trade.

(v) Consent by fraud: Where the consent of the buyer, in a contract of sale, is obtained by the seller by fraud or where the seller knowingly conceals a defect which could not be
discovered on a reasonable examination, the doctrine of caveat emptor does not apply.