Art. 1340

Art. 1340. The usual exaggerations in trade, when the other party had an opportunity to know the facts, are not in themselves fraudulent. (n)

The article refers to the usual exaggerations in trade which are not fraudulent by themselves when the party has the opportunity to investigate and know the true facts.

The exaggerations are also known as “dealer’s talk” or “traders talk” or “dolus bonus” which constitute tolerated fraud as long as the other party has the opportunity to check and know the facts.

What tolerated fraud covers. Tolerated fraud or dealer’s talk usually refers to the misrepresentation of traders tending to minimize the perceived defects of the thing or service advertised for sale; exaggerations or magnifications of its qualities, and its establishment with qualities that it does not possess.

Dealer’s talks do not give rise to actions for damages because of their insignificance or because it is the credulousness or stupidity of the victim which is real cause of his loss.

When there is a written contract, what does not appear on the face of the contract should be regarded as trader’s talk. Hence, the need to remember always the maxim “caveat emptor”.

Caveat emptor – the buyer has the duty to check the title of the seller over the property plus other circumstances necessary for his own protection. Otherwise he would be buying the property at his own risk.