What is the Doctrine of Caveat Venditor and what is its purpose?

Answer 1

Caveat venditor is in contrast to the legal doctrine of caveat emptor, or, let the buyer beware. The doctrine of caveat vendor establishes a set of good business practices that protect the seller. The seller must verify the authority of the buyer to contract on behalf of their company. Ask for certificates of authority. Typically, a seller should make appropriate inquiries as to the authority of the buyer and the quality of the payment: In other words, verify payment for goods and/or services prior to their delivery. The seller with any doubts can ask for a cashier's check. The seller must be alert to checks received for payment that show a notation of "payment in full" when the payment is not in full. Keep copies of all checks to monitor the authorized signatures.

For the small business the practice of using "PayPal" services for internet sales is a good example of the doctrine of caveat venditor in action. By using that service the seller is guaranteed that payment is made before the goods are delivered. For a good discussion see the link provided below.