ABSTRACT
This chapter explores the caveat emptor rule and its background in economic history before asserting a strong market rationale for the rule, which, it is argued, outweighs the moral doubts attaching to it. The caveat emptor rule has shown some resilience in ordering contract formation. The vendor of real property faces no duty to the purchaser to ensure that the property sold is free from defects of quality; caveat emptor applies as the primary rule. There is some dispute as to the origins of the caveat emptor rule. There are those who might suggest that Peter North's analysis above might apply to the caveat emptor rule more generally. The writings suggest a pragmatic acceptance of the utility of a caveat emptor rule which upholds certain values promoted by the common law for which adequate economic justification may be found even if it limits the scope of good faith in contractual negotiations.
