a. Critically discuss the caveat emptor and caveat venditor in respect of the sale of goods.
The caveat emptor principle, literally means let the buyer beware, is a principle that the seller of a product cannot be held responsible for its quality unless it is guaranteed in a warranty. In contrast, caveat venditor is a law applied to sellers when they are selling their products. It states that the sellers should be keen when exchanging their goods so that in case of any problem they should be responsible for it. Basically, caveat emptor is protection for the sellers while caveat venditor is a protection for the buyers during the business transactions.
In the modern world, the importance of caveat emptor has become less significant. Although the buyer is still required to make a reasonable inspection of goods upon purchase, increased responsibilities have been placed upon the seller, and the principle of caveat venditor has become more prevalent. Generally, there is a legal presumption that a seller makes certain warranties unless the buyer and the seller agree otherwise. One such warranty is the warranty of the goods sales. If a person buys soap for dish, for instance, there is warranty that it will clean the empty dish.
b. How the Retention Clauses can protect an unpaid seller from the consequences of losing those unpaid goods and payment in the event of a buyer’s insolvency.
A retention of title clause is a provision in a contract for the sale of goods that the title to the goods remains vested in the seller until certain obligations such as payment of the purchase price, are fulfilled by the buyer. The main purposes of retention of title clauses are to ensure that where goods are supplied on credit, if the buyer subsequently goes into insolvency, the seller can repossess the goods. They are often seen as a natural extension of the credit economy; where suppliers are expected to sell goods on credit, there is a reasonable expectation that if they are not...