Legal Principle: When a contract has been broken, the party who suffers by such breach is entitled to receive from the party who has broken the contract, compensation for any loss or damage caused to him thereby, which naturally arose in the usual course of things from such breach, or which the parties knew, when they made the contract to be likely to result from the breach of it. Such compensation is not given for any remote or indirect loss or damage sustained by reason of the breach. Decide, whether and to what extent B is entitled to damages in the following situation.Factual Situation: A contracts with B to sell him 1,000 tons of iron at ` 100 per tonne. B tells A that he needs the iron for export purposes, and that he would be selling the iron at ` 200 per tonne. A breaks the contract. When the question comes about damages, A says he will pay only ` 5,000 as damages because the same variety of iron was available in the market at ` 105 per tonne. B, however, contends that he should be given ` 1,00,000 because that was the profit which he would have made had A fulfilled the contract. B had actually bought the iron at ` 110 and had exported it. B is (NLU DELHI 2008)

Each question consists of legal principle(s) (hereinafter referred to as 'principle') and facts. Such proposition may or may not be true in the real and legal sense, yet you have to conclusively assume them to be true for the purposes of this section. You have to apply the principles to the given facts to arrive at the most reasonable conclusion. Only one of the alternatives, i.e., (A), (B), (C), or (D) is the most reasonable conclusion. Remember: you must not rely on any principle except the principles that are given for every question.