Opinion ID: 2063689
Heading Depth: 1
Heading Rank: 4

Heading: set off for reasonable value of use

Text: Homera's final assertion is that the trial court should have allowed a set off against the judgment for a refund of the purchase price for the reasonable value of the Erlings' use of the mobile home. As we have earlier commented, the trial court apparently thought the value of the use of the premises and the value of the interest were equal, but no evidence was received upon which such a finding could be based. Though the value of the home to the Erlings was substantially impaired, they have lived in it since it was purchased. The home has an ascertainable use value which should be determined and set off against the Erlings' purchase price. Pedrini v. Mid-City Trailer Depot, Inc., 1 Wash.App. 56, 459 P.2d 76, 79 (1969). Section 41-01-03, N.D.C.C., [3] provides that other principles of law and equity are applicable unless specifically displaced by provisions of the Uniform Commercial Code sections of the North Dakota Century Code. The official Code comments to Section 2-608, U.C.C., which is verbatim Section 41-02-71, N.D.C.C., indicate that the drafters intended to allow a buyer to both revoke acceptance and recover damages for breach. [4] Section 41-02-71 does not use the term rescission; rather, it uses revocation of acceptance to prevent confusion. See footnote 4, supra. Therefore, the sections of the North Dakota Century Code relating to rescission are applicable except where the Code specifically provides otherwise. Two sections on rescission are applicable. They are Sections 9-09-04(2), and 32-04-23, N.D.C.C., which provide: 9-09-04. Rules governing rescission. Rescission, when not effected by consent or pursuant to sections 9-08-08 and 9-08-09, can be accomplished only by the use, on the part of the party rescinding, of reasonable diligence to comply with the following rules:       2. He must restore to the other party everything of value which he has received from him under the contract or must offer to restore the same upon condition that such party shall do likewise, unless the latter is unable or positively refuses to do so. 32-04-23. Compensation may be required. On adjudging the rescission of a contract, the court may require the party to whom such relief is granted to make any compensation to the other which justice may require. As there was no evidence supporting the trial judge's award of set off of interest on the purchase price against the value of the use of the home, we remand for determination of the reasonable value of use of the home from the time of purchase to date of hearing on remand. The value of this use less interest at the rate of six percent per annum on the purchase price to the date of hearing on remand should be set off against the purchase price. The Erlings asked for interest at the rate of six percent per annum in their notice of rescission (revocation of acceptance) and this is consistent with Section 47-14-05, N.D.C.C. The judgment of revocation is affirmed, but the case is remanded for the taking of additional testimony and for amendment of judgment consistent with this opinion. VANDE WALLE, PEDERSON, PAULSON and SAND, JJ., concur.