Question

Solve :
X sells certain merchandise to Y warranting it to be of a particular quality, and Y in reliance upon this warranty, sells it to Z with a similar warranty. The goods prove to be not according to the warranty, and Y becomes liable to pay Z. Rs. 1,000 by way of compensation. Can Y recover Rs. 1,000 from X ?

Answer 1

Solution: Section to which the given problem relates: Section 73.
Decision and Reason: V can recover Rs. 1,000 from X because the damages were the direct consequence of the breach of contract.