Legal Dictionary
Caveat Emptor
Definition
Let the buyer beware; the principle that the buyer alone is responsible for checking the quality and suitability of goods before a purchase is made.
Deep Dive
Caveat Emptor is a Latin phrase meaning "let the buyer beware." It is a foundational principle in contract law, particularly concerning sales, which traditionally places the responsibility on the buyer to exercise due diligence and satisfy themselves about the quality, suitability, and condition of goods or services before making a purchase. Historically, this doctrine was very strong, especially in transactions involving unique or used items, meaning that if a buyer failed to inspect or inquire about potential defects, they generally had no recourse against the seller if problems arose later.
Examples & Use Cases
- 1Purchasing a used car "as-is" from a private seller, meaning the buyer accepts the vehicle with all its existing faults
- 2Investing in a startup company without thoroughly reviewing its financial statements and business plan
- 3Buying a piece of antique furniture without inspecting it for damage or authenticity.
Related Terms
Due DiligenceWarrantyProduct Liability