The Evolving Landscape Of Responsibility In Sales Contracts: A Detailed Examination Of Caveat Emptor And Caveat Venditor Under Indian Law

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Aaratrika Ghose, B.A. LL.B. (Hons.), CHRIST (Deemed to be University), Delhi-NCR

Saniya Razi, B.A. LL.B. (Hons.), CHRIST (Deemed to be University), Delhi-NCR

ABSTRACT

The study examines the evolution of responsibility in commercial transactions, specifically focusing on the shift from the principle of caveat emptor ("let the buyer beware") to caveat venditor ("let the seller beware") within the context of Indian law. In the modern consumerist era, where the consumer is considered ‘King’, the traditional notion of imposing the entire burden of caution on buyers is no longer conducive to flourishing trade and commerce. While caveat emptor historically required buyers to be extremely cautious about their purchases, the advent of modernization and industrialization necessitated a legal principle that would protect buyers without unfairly burdening them. This need gave rise to the principle of caveat venditor, which shifted the responsibility to sellers to be cautious about the products they offer. The study emphasizes that in a common law country like India, an outright replacement of one principle with the other is impractical. Therefore, the coexistence and equilibrium between caveat emptor and caveat venditor are essential. This research delves into the significance of these theories under Indian Law, particularly in relation to the Indian Sale of Goods Act, 1930. Understanding the definitions of 'buyer,' 'seller,' and 'goods' as defined in the Act is crucial for analyzing these concepts. The evolution from caveat emptor to caveat venditor reflects a response to the limitations of the former in protecting buyers in increasingly complex markets. The introduction of the Consumer Protection Act, 2019, particularly concerning product liability, has given legal precedent to the doctrine of caveat venditor, transferring the onus of defects and deficiencies from the buyer to the seller. The study concludes by examining the possibility of both principles existing harmoniously, suggesting that a case- by-case application decided by the Indian judiciary might be the most appropriate approach in ensuring a fair market.

Keywords: Caveat Emptor, Caveat Venditor, Buyer, Seller

THE EVOLVING LANDSCAPE OF RESPONSIBILITY IN SALES CONTRACTS- A DETAILED EXAMINATION OF CAV.

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