Question

Legal Principle: Damages are payable for breach of contract and the purpose of damages is to compensate him of the loss suffered and not to improve his position more than what it would have been if the contract had been duly performed.

Factual situation: A wanted to buy a house and he contracted with surveyor S to inspect a particular house and value it for him. S surveyed the house and valued it for Rs 10 lakhs. S, however , failed to notice the defective plumbing system in the house and had he taken note of it, the house would have been worth only Rs 8 lakhs. A followed S's adivce and bought the house for Rs 10 lakhs and thereafter spent Rs 4 lakhs for repairing the plumbing system. He filed a suit against S claiming Rs 4 lakhs as damages.

• A. A should get Rs 4 lakhs, because that was the amount that he had to spend finally to make the house worth living.
• B. A should get Rs 2 lakhs since he paid additional Rs 2 lakhs on account of S's negligence.
• C. A should get Rs 4 lakhs, since that loss was attributable to S's negligence.
• D. None of the above.

Answer 1

The correct option is B A should get Rs 2 lakhs since he paid additional Rs 2 lakhs on account of S's negligence.

A should get Rs 2 lakhs as he spent additional Rs 2 lakhs on S's negligence.

In the above mentioned case, A has spent the money for the plumbing work but the cost of the house without plumbing works was Rs 8 lakhs and with the plumbing work was Rs 10 lakhs. But, he spent 4 lakhs extra. Hence, he would be liable for the compensation of Rs 2 Lakh only.

Hence, B is the correct option.