Caveat emptor (s. 16) and its exceptions; the transfer of property (ss. 18-26) and the rule nemo dat quod non habet with its exceptions (ss. 27-30)

LUG-103 Law of Contract including Specific Relief Act & Sale of Goods Act, Unit V: Caveat emptor. · LLB · 60 min

'Let the buyer beware' is the starting rule of s. 16: the seller gives no implied undertaking about quality or fitness. This lecture explains the doctrine with Ward v. Hobbs, then each exception that has reduced it to a residual rule - fitness for a disclosed purpose, merchantable quality, usage of trade, sale by description and by sample, and fraud or misrepresentation - with the cases the examiner expects (Priest v. Last, Frost, Grant, Baldry, Morelli, Harlingdon). It then covers, in outline, when property passes (ss. 18-26, the meaning of 'deliverable state' and the rule that risk follows property) and the rule that no one can give a better title than he has (s. 27) with its statutory exceptions (ss. 27-30). Caveat emptor has been asked in four of the last five papers.

Objectives

Explain the doctrine of caveat emptor as embodied in s. 16 and its rationale, with Ward v. Hobbs
State and illustrate with cases every exception to caveat emptor and say when the rule does not apply
Define 'deliverable state' and apply the rules in ss. 18-24 to decide when property passes in specific and unascertained goods
State the rule nemo dat quod non habet in s. 27 and its exceptions in ss. 27-30 and elsewhere
Apply s. 26 (risk follows property) and the nemo dat exceptions to problem questions

Slides

Caveat emptor: the rule in s. 16 and Ward v. Hobbs
Exception 1: fitness for the buyer's purpose, s. 16(1)
Exceptions 2 to 5: merchantable quality, usage of trade, description, sample
Exceptions 6 and 7: fraud, misrepresentation and active concealment; the table of exceptions
Transfer of property: why it matters, s. 18, s. 19 and 'deliverable state'
Specific goods: ss. 20, 21, 22 and goods on approval, s. 24
Unascertained goods (s. 23), reservation of the right of disposal (s. 25) and risk (s. 26)
Nemo dat quod non habet: s. 27 and the exceptions of estoppel, mercantile agent, joint owner and voidable title
Seller and buyer in possession after sale (s. 30) and the other exceptions; the table
How the examiner asks it

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