Question

Principles: Damages are payable for breach of contract and the purpose of damages is to compensate him for the loss suffered and not to improve his position more than what it would have been if the contract had been duly performed.
Facts: A wanted to buy a house and he contracted with a 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 advice and bought the house for Rs. 8 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.

The original value of the house in with a good plumbing system is Rs. 10 Lakh. A had to pay an additional amount of Rs. 4 lakhs, but only Rs. 2 Lakhs over the value of the house (i.e. Rs. 10 lakhs) , and this is the amount which will count towards the loss suffered by 'A'. Hence 'A' is to be paid rs. 2 lakhs in compensation on the account of negligence by S.