Multiple choice

Directions: Go through the problem and encircle the most appropriate answer.

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. '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.

  1. A should get Rs. 4 lakhs, because that was the amount that he had to spend finally to make the house worth living.

  2. A should get Rs. 2 lakhs, since he paid additional Rs. 2 lakhs on account of S's negligence.

  3. A should get Rs. 4 lakhs, since that loss was attributable to S's negligence.
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

A suffered a loss of Rs. 2 lakhs due to S's negligence - the house was worth Rs. 8 lakhs (not Rs. 10 lakhs as valued), but A paid Rs. 8 lakhs plus Rs. 4 lakhs for repairs. The actual loss attributable to S's failure to detect the plumbing defect is Rs. 2 lakhs (the difference between the true value and what A paid). A cannot recover the Rs. 4 lakhs repair cost entirely because part of that expense would have been needed anyway.

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