(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 the buyer 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
the buyer from maintaining an action for the same breach of warranty if the
buyer has suffered further damage.
