A bought a horse from B. A wanted to enter the horse in a race. It turns out the horse was not capable…

Under Section 16 of the Sale of Goods Act, 1930, the general rule is Caveat Emptor ('let the buyer beware'), under which 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 exception in Section 16(1) applies only where the buyer, expressly or by implication, makes known to the seller the particular purpose for which the goods are required so as to show that the buyer relies on the seller's skill or judgment. Because A did not inform B of his purpose of entering the horse in a race, the exception is not attracted and the doctrine of Caveat Emptor applies.