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Q. Ken owns also operates a famous calsoy store. Business is particularly heavy during the Christmas season. Ken contracts with Sweet, Inc., to purchase ten thousand pounds of sugar to be delivered on or before November 15. Ken has informed Sweet which this particular order is to be used for the Christmas season business. Because of production problems, the sugar is not tendered to Ken until December 10, at which time Ken refuses it as being too late. Ken has been unable to purchase the quantity of sugar needed to meet the Christmas orders also has had to turn down numerous regular consumers, some of whom have indicated which they will purchase candy elsewhere in the future. Illustrate what sugar Ken has been able to purchase has cost him 10 cents per pound above the price contracted for with Sweet. Ken sues Sweet for breach of contract, claiming as damages the higher price paid for sugar from others, lost profits from this year's lost Christmas sales, future lost profits from consumers who have indicated which they will discontinue doing business with him, also punitive damages for failure to meet the contracted delivery date. Sweet claims Ken is limited to compensatory damages only. Discuss who is correct, also explain why.
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