Shaken by the terrorist attacks against his mead hall, Hrothgar agreed to sell it to Beowulf for 800 pounds. To seal the deal, Beowulf paid Hrothgar a down payment of 100 pounds. When the government announced a program of state-subsidized terrorism insurance, Hrothgar realized he had made a bad deal and breached the contract. It was determined that the fair market value of the mead hall was 1200 pounds.

How much is Beowulf entitled to recover in damages?

 
100 pounds
 
400 pounds
 
500 pounds