Consider the following statements with regard to the consequences of breach of contract.
1. In case of breach of contract, the party who suffers is entitled to receive compensation for any loss or damage caused to him thereby, which the parties knew, when they made the contract, to be likely to result from the breach of it.
2. Such compensation is to be given for any remote and indirect loss or damage sustained by reason of the breach.
Which of the statements given above is/are correct?