X' agreed to supply 1000 tons of iron at Rs. 100 per ton to 'Y' to be delivered not later than 31<sup>st</sup> January, 2002. 'X' also entered into a contract with 'A' for purchase of 1000 tons of iron at Rs. 80 per ton telling 'A' clearly that the iron is needed before 31<sup>st</sup> January, 2002 for supply to 'Y' to fulfil the contract with Y. 'A' fails to supply the iron to 'X' who in tum failed to supply the same to 'Y'. In an action by 'X' against 'A'.

Correct Answer: X' can recover damages for the loss or profit he would have earned by timely supply to 'Y' and also the damages which 'X' might have paid to 'Y' on account of breach of contract