Briefly, a condenser stores electricity. When the points open, electricity surges into the condenser (instead of arcing across the points). Then it surges back out through the coil and the spark is created. This is a greatly simplified explanation. There are crude tests you can do with a mulltimeter, an accurate test requires a capacitance tester. Generally speaking, they all leak. It is a matter of how bad they leak. That is why it was customary to just replace them back in the day. Nowadays, people are too cheap to do that, so they just use 'em.