Sale of Goods Act Section 59 — Remedy for breach of warranty
CHAPTER VI SUITS FOR BREACH OF THE CONTRACT
Commercial / Corporate
Summary
Sub-section (1) explains what happens when a seller breaks a warranty, or when a buyer chooses or is forced to treat a broken condition as if it were a broken warranty. In such a case, the buyer cannot reject the goods just because of that breach. Instead, the buyer has two options: under clause (a), the buyer can raise the breach against the seller to reduce the price they have to pay, or even wipe out the price entirely; under clause (b), the buyer can sue the seller for money damages because of the breach.
Sub-section (2) clarifies that if a buyer has already used the breach to reduce or wipe out the price, that does not stop the buyer from also suing the seller for the same breach if the buyer has suffered additional harm beyond the price reduction.
Official Text
(1) Where there is a breach of warranty by file seller, or where the buyer elects or is compelled to treat any breach of a condition on the part of the seller as a breach of warranty, the buyer is not by reason only of such breach of warranty entitled to reject the goods; but he may—
(a) set up against the seller the breach of warranty in diminution or extinction of the price; or
(b) sue the seller for damages for breach of warranty.
(2) The fact that a buyer has set up a breach of warranty in diminution or extinction of the price does not prevent him from suing for the same breach of warranty if he has suffered further damage.