Correct option is B
The correct answer is: (b) B and C only
Detailed Explanation
Under the Sale of Goods Act, 1930, this scenario illustrates the fundamental rule of Caveat Emptor ("Let the buyer beware") enshrined in Section 16:
- General Rule (Caveat Emptor): Section 16 provides that there is no implied warranty or condition as to the quality or fitness for any particular purpose of goods supplied under a contract of sale. The buyer must exercise their own judgment and care to ensure the goods suit their purpose.
- Exception under Section 16(1): For an implied condition as to fitness to apply, the buyer must expressly or impliedly make known to the seller the particular purpose for which the goods are required, relying on the seller's skill or judgment.
Because 'A' did not inform 'B' that he needed the horse specifically for riding, the case falls strictly under the general rule of caveat emptor rather than the exception:
- Statement A is INCORRECT: 'A' cannot return the horse under implied conditions because he failed to communicate the specific purpose to the seller.
- Statement B is CORRECT: Since 'A' did not specify his requirement, 'A' can neither reject the horse nor claim any damages/compensation from 'B'.
- Statement C is CORRECT: The situation is directly governed by the legal maxim caveat emptor.
- Statement D is INCORRECT: The exception under Section 16(1) does not apply because 'A' did not disclose his intended purpose to 'B'.