Section 59 of The Sale of Goods Act, 1930
Remedy for breach of warranty.
- (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.
Summary
- This section explains what a buyer can do when a seller breaks a warranty.
- A buyer cannot reject the goods just because a warranty is broken.
- The buyer can use the breach to reduce the price they owe the seller.
- The buyer can also choose to sue the seller for damages for the breach.
- Even if the buyer reduces the price, they can still sue if they have suffered more damage.
- These rules also apply if a buyer chooses to treat a broken condition as a broken warranty.
Practical examples
FAQ
1. Can I return goods for a breach of warranty under the Sale of Goods Act, 1930?
No, according to Section 59 of the Sale of Goods Act, 1930, a breach of warranty does not entitle the buyer to reject the goods.
2. What does "diminution of price" mean in Section 59 of the Sale of Goods Act, 1930?
It means the buyer can set up the breach of warranty against the seller to lower or completely cancel out the price they have to pay.
3. If I reduce the price for a breach of warranty, can I still sue for more under the Sale of Goods Act, 1930?
Yes, Section 59 of the Sale of Goods Act, 1930 allows you to sue for further damage even if you have already reduced the price.
4. Does Section 59 of the Sale of Goods Act, 1930 apply if I treat a major condition as a minor warranty?
Yes, Section 59 specifically applies when a buyer elects or is compelled to treat a breach of condition as a breach of warranty.
Test yourself
1.Under Section 59 of the Sale of Goods Act, 1930, what right is specifically denied to a buyer for a breach of warranty?
2.According to Section 59 of the Sale of Goods Act, 1930, how can a buyer use a breach of warranty against a seller's claim for the price?
3.If a buyer treats a breach of condition as a breach of warranty, which section of the Sale of Goods Act, 1930 provides their remedy?
4.Can a buyer sue for further damages under Section 59 of the Sale of Goods Act, 1930 after reducing the price?