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DAMAGES UPON RESCISSION FOR BREACH OF WARRANTY

Abstract

The Uniform Sales Act in section 69(1) and (2) provides that if there is a breach of warranty the buyer may, as one of four remedies, rescind the contract to sell or the sale as the case may be, and recover the price paid, but limits the buyer to the one remedy chosen. Under these provisions it has been contended and likewise held, not only that the buyer is limited to one of the four remedies, but also, if he chooses the remedy of rescission, that his recovery is limited to the price paid. It is the purpose of this article to establish that a better and different rule prevailed at common law; and that under a proper interpretation of sections 70 and 73, the Uniform Sales Act, with the possible exception of direct damages in the event the warranty is innocently made, permits this rule.

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