AIBE III 2012 Question 27

A hands over a permit to a courier company, who agree to deliver it without delay to A's paper factory. A informs the courier company that his factory cannot restart production till the permit is delivered to them. The courier company unreasonably delays the delivery of the permit. As a result, A loses an unusually lucrative contract with a Japanese company. What is the compensation that A is entitled to receive from the courier company?

1. A A is entitled to receive as compensation the average amount of profit that he would have made from the working of his factory during the period of delay, but not the loss sustained through the loss of the contract with the Japanese company. Official answer
2. B A is entitled to receive as compensation an amount equal to overhead costs of his factory that were incurred during the period of delay.
3. C A is not entitled to any compensation.
4. D A is entitled to receive as compensation the profits that he would have made from the unusually lucrative contract with a Japanese company.
5. E A is entitled to receive as compensation the profits that he would have made had he entered into a similarly lucrative contract with an Indian company.