Caveat emptor

Caveat emptor is Latin for "let the buyer beware," a contract law principle that places the risk of defects on the buyer, mainly in real property sales after closing. The principle stems from information asymmetry, since sellers typically know more about the goods than buyers do. Under it, buyers could not recover damages for defects unless the seller actively concealed latent defects or made fraudulent misrepresentations. The article notes that in the UK, consumer law has moved away from this model, and consumer purchases are now governed by the Consumer Rights Act 2015. It also states that the principle is generally still held to apply to transactions between businesses.