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Contract Glossary

Caveat Emptor

Definition

Latin for 'let the buyer beware.' It means the buyer is responsible for checking the quality and condition of goods before purchasing. The seller isn't obligated to disclose defects unless required by law or contract.

In Practice

You're buying a used piece of equipment marked 'as is.' Under caveat emptor, it's on you to inspect it before handing over your money. If the motor burns out a week later, that's your problem — unless the seller actively lied about the condition. Modern consumer protection laws have weakened caveat emptor for retail purchases, but it's still alive and well in B2B and private sales.

Common in these contract types

ServicesLeaseCustom

Frequently asked questions about caveat emptor

Less than it used to, but yes — especially in B2B transactions and private sales. Consumer protection laws, warranty requirements, and disclosure obligations have chipped away at it for retail and real estate. But if you're buying business equipment or inventory from another company 'as is,' caveat emptor is very much in play.

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This content is for informational purposes only and does not constitute legal advice. For contracts with significant financial or legal implications, review by a qualified attorney is recommended.