Page:United States Statutes at Large Volume 50 Part 1.djvu/71

 46 75TH CONGRESS, 1ST SESS ION-CH. 43 -MARCH 17, 1937 warranty, such deterioration or injury shall not prevent the buyer from retur ning or of ferin g to retur n the good s to the s eller and rescinding the sale. (4) Where the buyer is entitled to rescind the sale and elects to do so, the buyer shall cease to be liable for the price upon returning or offering to return the goods. If the price or any part thereof has already been paid, the seller shall be liable to repay so much thereof as has been paid, concurrently with the return of the goods, or immediately after an offer to return the goods in exchange for repayment of the price. (5) Where the buyer is entitled to rescind the sale and elects to do so, if the seller refuses to accept an offer of the buyer to return the goods, the buyer shall thereafter be deemed to hold the goods as b ailee fo r the se ller, b ut subje ct to a lien to secure the repa yment of a ny por tion of the price which has be en pai d, and with the re medies for the enforcement of such lien allowed to an unpaid seller by Ante, p. 41. section 53. (6) The measure of damages for breach of warranty is the loss d irectl y and natura lly re sultin g, in the or dinary cours e of e vents, from the breach of warranty. (7) In the case of breach of warranty of quality, such loss, in the absence of special circumstances showing proximate damage of a greater amount, is 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. Interest and special SEC. 70. INTEREST AND SPECIAL. DAMAGES.-Nothing in this Act shall damages. af fect the right of the b uyer or the sell er to r ecover i nterest or spe- cial 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. Part VI. Int erp ret ati on. Variation of implied obligations . Rights may be en- forced by action. Rule for cases not herein provided for. Interp retatio n, effe ct. Provisions not ap- plicable to mortgages. PART VI INTERPRETATION SEC. 71. VARIATION OF IMPLIED OBLIGATIONS :Where any right, duty 2 or liability would arise under a contract to sell or a sale by implication of law, it may be negatived or varied by express agree- men t or b y the course of de aling betwee n the partie s, or by cus tom, if the custom be such as to bind both parties to the contract or the sale. SEC. 72. RIG HTS MAY BE ENFORCED BY ACTION.-Where any right, dut y, or li ability is decl ared by this Act, it ma y, unles s otherw ise by this Act provided, be enforced by action. SEC. 73. R ULE FOR CASES NOT PROVIDED FOR BY THIS ACT.-In any case not provided for in this Act, the rules of law and equity, includ- ing the law merchant, and in particular the rules relating to the law of principal and agent and to the effect of fraud, misrepresentation, duress or coercion, mistake, bankruptcy, or other invalidating cause, shall continue to apply to contracts to sell and to sales of goods. SE C. 74. INTERPRETATION SHALL GIVE Ek'a'EOT TO PURPOSE OF UN I- FORMITY .-This Act shall be so interpreted and construed as to effec- tuate its general purpose to make uniform the laws of those States which enact it. SEC. 75. PROVISIONS NOT APPLICABLE TO MORTGAGES .-The provisions of this Act relating to contracts to sell and to sales do not apply, unless so stated, to any transaction in the form of a contract to sell or a sale which is intended to operate by way of mortgage, pledge, charge, or other security.