In the case of 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. 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. 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 would have answered to the warranty. 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. This does not prejudice or affect the buyer's right of rejection in Scotland, and nothing in the Sale of Goods Act affects the right of the buyer or the seller to recover interest or special damages in any case where by law interest or special damages may be recoverable, or to recover money paid where the consideration for the payment of it has failed.
into Court in Scotland when breach of warranty alleged.—In Scotland where a buyer has elected to accept goods which he
might have rejected, and to treat a breach of contract as only giving rise to a claim for damages, he may, in an action by the seller for the price, be required, in the discretion of the Court before which the action depends, to consign or pay into Court the price of the goods, or part thereof, or to give other reasonable security for the due payment thereof. Auction sales.—In the case of a sale by auction—(1) Where goods are put up by auction in lots, each lot is prinui facie deemed to be the subject of a separate contract of sale. (2) A sale by auction is complete when the auctioneer announces its com pletion by the fall of the hammer, or in other customary manner. Until such announcement is made any bidder may retract his bid. (3) Where a sale by auction is not notified to be subject to a right to bid on behalf of the seller, it is unlawful for the seller to bid himself or to employ any person to bid at such sale, or for the auctioneer knowingly to take any bid from the seller or such person. Any sale contravening this rule may be treated as fraudulent by the buyer. A sale by auction may be notified to be subject to a reserved or upset price, and a right to bid may also be reserved expressly by or on behalf of the seller. Where a right to bid is expressly reserved, but not otherwise, the seller, or any one person on his behalf, may bid at the auction.