Calculation of damages on account of defective goods

Delhi High Court in the matter of Thyssen Krupp Materials Vs Steel Authority of India; FAO (OS) 150/2002 held that Section 73 of Indian Contract Act stipulates the rule of damages for breach of contract, aimed at compensating the injured party, as far as money can, by placing him in as good situation as if the contract had been performed. In regard to defective goods, the measure of damages is usually the price paid for the defective goods to the seller reduced by the price received when such defective goods are sold by the buyer.