CAVEAT EMPTOR

CAVEAT EMPTOR : 

CAVEAT EMPTOR Caveat emptor means LET THE BUYER BEWARE. It is NOT part of the sellers duty to point out the defects of the goods which he offers for sale, rather it is the duty of the buyer to satisfy himself about the quality as well as the suitability of goods. EXCEPTIONS TO THE DOCTRINE OF CAVEAT EMPTOR: 1) In case of misrepresentation by seller. 2) In case of concealment of latent defect. 3) In case of sale by description. 4) In case of sale by sample. 5) In case of sale by description and sample. 6) Fitness for a particular purpose: When the buyer has disclosed the purpose for which the goods are required and relied upon the sellers skill or judgment of the seller. 7) Merchantable quality. RELEVANCE OF C EMPTOR: Can be replaced as CAVEAT VENDOR

UNPAID SELLER : 

UNPAID SELLER The seller of goods is deemed to be an unpaid seller if : a) When the whole of the price has not been paid or b) When a negotiable instrument is dishonoured. RIGHTS OF AN UNPAID SELLER: 1) Right against the goods: a) if the property has passed to buyer: Right of lien, Right of stoppage in transit, Right of resale. b) if the property in the goods has NOT passed: Withholding delivery, Stoppage in transit and Resale. The unpaid seller should give a proper NOTICE, to the buyer regarding lien, stoppage in transit and re sale of goods, if not paid. 2) Right against the buyer personally: Suit for price, suit for damages and suit for interest.

AUCTION SALE : 

AUCTION SALE A public sale where intending buyers assemble at one place and offer the price at which they are ready to buy the goods. The offer of the price is known as “bid” and the person making the bid is “bidder”. The person appointed to sell is called “auctioneer”. The relationship between auctioneer and the owner of the goods is that of the principle and agent. The goods are sold to the highest bidder. An advertisement to sell the goods by auction is simply an invitation to the public to make offers and NOT an offer its self. RULES REGARDING SALE BY AUCTION: 1) Each lot is deemed to be the subject of a separate contract. 2) Sale is complete on the fall of the hammer. 3) Before the completion, bidder may with draw his bid. 4) A right to bid may be reserved expressly and seller can also bid. 5) If a sale is notified to be subject to reserve price then auctioneer has NO power to sell, below the reserve price. 6) Pretended bidding to raise price, can be voidable.