When a client sends data to a FastAPI endpoint, FastAPI checks the data against the expected Pydantic model. If the data is correct, the endpoint runs and returns the data or result. If the data is wrong, like missing fields or wrong types, FastAPI sends back a 422 error with details about what is wrong. This helps clients fix their requests. For example, if the price should be a number but is a word, FastAPI will say 'price not float'. If a required field like name is missing, it will say so. Negative numbers are allowed unless you add extra rules. This automatic validation makes APIs safer and easier to use.