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Given Below is a Statement of Legal Principle Followed by a Factual Situation. Apply the Principle to the Facts and Select the Most Appropriate Answer. Principle - Legal Reasoning

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MCQ

Given below is a statement of legal principle followed by a factual situation. Apply the principle to the facts and select the most appropriate answer.

Principle: 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

Options

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

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

  • A should get Rs. 4 lakhs since that loss was attributable to S's negligence

  • None of the above

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Solution

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

Explanation:
The principle states that the purpose of damages is to compensate the injured person and not to improve his position, the amount has spent 4 lakhs thus he should get back the amount he has spent.

Concept: Contract Law
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