Pitting or pips on the points faces indicate either over, or under capacitance. Depends which side of the circuit they are.
Check for any possible short to earth/ground point in the circuit. Is your Spark plug good?. Check for spark with the lead wire end.
Suggest you obtain a copy of a parts list for your specific Techy engine version.
Once you have the correct part numbers for the Coil, Points and Condenser, you can search places like this. -LINK- .
Maybe check the Tecumseh Manual listed in the 'Downloads' tab on the header line on Home page here for a start. if no good, search online for your engine version.
Provided the Magnets in the flywheel can attract a large screwdriver flat end from about 19mm away, it should be ok to produce a good spark.
Replace the points and condenser with new ones together.