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A contractor takes advance payment to repair a homeowner's house in a specified way. The contractor…

The reasonable cost of making the work match the agreed specification is the compensable loss identified in section 73 illustration (f).

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A contractor takes advance payment to repair a homeowner's house in a specified way. The contractor carries out the repair but fails to follow the agreed specification. On these facts, what is the usual measure of the homeowner's compensation under section 73 of the Indian Contract Act, 1872?

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Answer and explanation

Correct answer A

The reasonable cost of making the work match the agreed specification is the compensable loss identified in section 73 illustration (f).

Option feedback

Option A

Illustration (f) awards the cost of making the repairs comply with the contract.

Option B

Doing some work does not defeat a claim for the cost of correcting the nonconforming work.

Option C

Illustration (f) measures the loss by the cost of correction. The breach does not itself establish automatic repayment with interest.

Option D

The statutory illustration concerns correction costs. It does not grant automatic repayment of the full advance.

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