Explanation:

- The contract specifies the delivery of 1,000 bags of rice at Rs 100 per bag.

- On the due date, the seller refuses to deliver.

- The market price on that day rises to Rs 120 per bag.

- The difference between the market price and contract price is Rs 20 per bag.

- Ordinary damages aim to compensate the buyer for the loss.

- Therefore, damages would be Rs 20 (difference per bag) x 1,000 bags.

- Option:1 - Rs 20,000 is the correct option.

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