306 DR. BABASAHEB AMBEDKAR : WRITINGS AND SPEECHES
Liabilities of the Parties
A. Liabilities of the Seller
I. B EFORE C ONVEYANCE
- S ECTION 55 (1) ( A ) —To DISCLOSE MATERIAL DEFECTS .
(1) A contract for the sale of land is not a contract uberrimal fidei: The duty of disclosure is not absolute. The duty to disclose is an obligation to disclose latent defects.
(2) A latent defect is a defect which the buyer could not with ordinary care discover for himself. There is no duty to disclose defects of which the buyer has actual or constructive notice.
(3) As to patent defects of which the seller is unaware, the maxim caveat emptor applies. But a mutual mistake as to a matter of fact essential to the agreement will render the agreement void.
(4) A latent defect whether of property or of title must be material. A defect to be material must be of such a nature that it might be reasonably supposed that if the buyer had been aware of it, he might not have entered into the contract at all, for he would be getting something different from what he contracted to buy.
(5) Whether a defect is material or not must depend upon the circumstances of each case. When land was sold for building purposes, an underground drain was held to be a material defect, but not when a house or land were sold mainly for residence.
(6) Defects may be Defects in property or Defects in tide.
- S ECTION 55 (1) (B)— P RODUCTION OF T ITLE DEEDS
(1) The obligation is to produce title-deeds for inspection and not for delivery.
(2) The documents of title required to be produced for inspection are not only documents which are in the possession of the seller, but also includes documents which are in his power to produce.
(3) There is no obligation to produce title deeds unless the buyer makes a requisition.