(1) Where there is a
breach of warranty by the 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)
maintain an action against the seller for damages for the breach of warranty.
(2) The measure of
damages for breach of warranty is the estimated loss directly and naturally
resulting, in the ordinary course of events, from the breach of warranty.
(3) In the case of
breach of warranty of quality such loss is, prima facie, the difference
between the value of the goods at the time of delivery to the buyer and the
value they would have had if they had answered to the warranty.
(4) The fact that the
buyer has set up the breach of warranty in diminution or extinction of the
price does not prevent him from maintaining an action for the same breach of
warranty if he has suffered further damage.