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,in time for the Christmas season.The shipment did not arrive until December 1.In spite of the delay,All Seasons covered a third of the order through other suppliers,but had to pay 15% more than the price under contract with Santa,Inc.As a further result of the delay,All Seasons' sales were down 25%.All Seasons can recover:

Question

Quizplus · Accepted Answer

All Seasons can recover compensatory damages, which are intended to compensate for the losses incurred due to the delay, such as the additional cost of purchasing decorations from other suppliers. Additionally, they can recover consequential damages, which are damages that flow from the breach of contract but are not direct damages, such as the loss of sales. However, punitive damages are awarded to punish the breaching party for intentional or reckless actions and are not applicable in this scenario. Likewise, nominal damages are only awarded when an actual loss is not established or when the actual loss is insignificant, which is not the case here.