Bricks, Masonry, Asphalt and Concrete - French drain?

I have an older home (built in '62) which has a small room (formerly a porch) @ the back of the house. The land behind the house is on a slope and so I am having problems with water seeping through the wall\foundation of what is now an enclosed utility room. A portion of the baseboard along that wall is water damaged to the extent that they are badly stained from the moisture. I have spoken with two entities (landscape contractor and excavation group) in regard to how to correct this problem. The landscaper suggests a french drain. The other group suggests that they excavate dirt about 3 feet away from the back wall, use it as backfill against the edge of the wall and then dig down to the footer and apply sealant. Their estimates came in remarkably close. Which approach sounds best? Is sealant necessary?

It is better to keep the water away in the first place, so I would start with the french drain. Using landscaping and grading to keep the water at bay will be more efficient and effective in the long run than trying to stop the intrusion with a sealant.

I have seen many basement leak repairs done and fail. I have yet to see one done from the inside that lasted more than a few years. Those done from the outside have better success typically, but if not done right will leak again also. The only solution for a basement leak consists of both a French drain and a sealant.

Shaping of the soil near the foundation is obviously needed as well, as usual, sloped away from the house.

Have the leak fixed as follows and it will never leak again:

1) Dig down to the weeping tiles to expose the crushed gravel around them. If the soil is hard clay, it can be safely dug just large enough for a man straight down provided there is no rain. Be careful that some people have been buried alive doing this under the wrong soil/weather conditions. For that reason, construction safety procedures require that the contractor dig back on a 1:1 slope all soil that is above 4 feet from the bottom. This greatly increases the quantity of fill dug out and cost.
2) Once the hole is dug, clean the crack area and apply bitumen (roof tar) to the crack to fill it generously. Cover the repaired area with something to protect it (roofing paper, plastic sheet, wood, whatever you have handy).
3) Get a perforated plastic tube about six inches in diameter long enough to reach from the ground level down to the weeping tiles, and hold it vertically. A helper would be ideal here for a third hand. Fill it with crushed stone (5/8", 7/8" or something similar, but not gravel). As you fill the tube, back fill the area around it with native soil to support it in place. You can backfill with some stone if you have lots. Make sure the stone in the tube reaches (sits on) the stone around the weeping tiles. This is your French drain. It provides an easy escape for any water that could otherwise find its way into the foundation again should the crack open up in the future.
4) shape the soil on top to slope away from the foundation.

Say goodbye to future leaks in that area.