Buyer in a contract of sale of specific goods will purchase them at his own risk with regard to the quality or fitness of the goods except in case of fraud or where a. DOCTRINE OF CAVEAT EMPTOR AND ITS EXCEPTIONSAMIT MISHRA LECTURER AMITY LAW SCHOOL [email protected] DOCTRINE OF. The doctrine of caveat emptor, meaning “let the buyer beware”, is generally duty to disclose latent defects that make a property unfit for its intended use when .
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Frequently forgotten exceptions to caveat emptor in commercial real estate property transactions
It is the responsibility of the purchaser to investigate the excepgions property they are buying or protect themselves through contract. Nonetheless, there are several decisions that suggest that a responsible vendor should consider whether to disclose latent defects to a purchaser.
Cresswell considered the sale of a commercial strata unit that contained a steel mezzanine structure which had been installed without the necessary building permits and did not comply with the B. The court decided that the status of emtpor mezzanine was a patent defect, and therefore caveat emptor applied.
What Are The Exceptions To The Rule Of Caveat Emptor – iPleaders
A vendor only has a duty to disclose latent defects that make a property unfit for its intended use when the vendor has knowledge of the intended use of the property. The purchaser intended to use the property to build a condominium complex.
The court in Tony found that the vendor was under no obligation to disclose contamination that would prevent a residential usage of the land, because: A vendor of real property can only have a duty to disclose a latent defect that they know about or recklessly disregard.
In Home Exchange Alberta Ltd. The court in Cresswell suggested that a purchaser’s sophistication could diminish the substance of a vendor’s duty to disclose.
We disagree with this suggestion. The court in Cardwell v.
These points contextualize the applicable standard of reasonable inquiry by reference to the high standard of reasonable inspection by a hypothetical qualified person. To categorize a defect as patent or latent depending on the characteristics and knowledge of a particular purchaser would run contrary to the excepptions trajectory of the law, and inject potential uncertainty and unfairness into its application.
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