GMGT 2060 Lecture Notes - Lecture 45: Caveat Emptor

• School: University of Manitoba
• Department: General Management
• Course: GMGT 2060
• Professor: Alok Dua

Document Summary

1246: rescission, where the contract is set aside and the court puts the parties back in the original position (pre- contact position). Sometimes it"s impossible to rescind, for example if the good doesn"t exist anymore. The source of the principles can either be statute or common law. The sale of goods act: passed in 1893 in the uk parliament through a statute, all jurisdictions in the common law have adopted this act. Text book, caveat emptor does not mean in law or in latin that the buyer must take a chance, rather it means the buyer must take care. He must be reasonable cautious where in circumstances where the buyer can and does exercise personal judgment. Ce is however not a rigid rule but a flexible general principle subject to limits put on it by common sense and customary business practice.