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CMA Foundation · Fundamentals of Business Laws and Business Communication · Sale of Goods Act, 1930

A buyer sets up a seller's breach of warranty to reduce the price payable. Later he discovers that he suffered further loss from the same breach. Under the Sale of Goods Act, 1930, what is the position?

He may still sue the seller for damages for the same breach of warranty if he has suffered further damage. Using the breach to reduce the price does not bar a later suit, though he cannot reject the goods merely for warranty breach.

  1. AHe cannot sue because he has already used the breach to reduce the price
  2. BHe may sue for the same breach if he has suffered further damageCorrect
  3. CHe may sue only if the seller agrees
  4. DHe may reject the goods and treat the contract as repudiated

Explanation

Section 59(2) says that setting up a breach of warranty in diminution or extinction of the price does not prevent the buyer from suing for the same breach if he has suffered further damage. Rejection of goods is not allowed merely for breach of warranty under Section 59(1).

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