All Seasons,Inc.ordered $5,000 worth of Christmas decorations from Santa,Inc.The shipment of decorations was to arrive no later than October 1,but did not arrive until December 1.All Seasons was able to purchase some of the unfulfilled order through other suppliers,but had to pay 15% more than the price under contract with Santa,Inc.As a result of the delay,All Seasons' sales were down 25%.All Seasons can recover

Question

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All Seasons can recover compensatory damages for the amount they paid Santa,Inc. for the unfulfilled order as well as the additional 15% they paid to other suppliers. They can also recover consequential damages for the 25% decrease in sales caused by the delay. However, punitive damages (intended to punish the offending party) would not be applicable in this situation. Similarly, nominal damages (a token amount representing a moral victory) would not be sufficient to compensate All Seasons for their losses.