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Ken owns and operates a famous candy store and makes most of the candy sold in the 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 that this particular order is to be used for the Christmas season business, and he needs the sugar no later than Nov.15 so he has enough time to make all of the Christmas candy. Because of problems at the sugar refinery, the sugar is not tendered to Ken until December 10, at which time Ken refuses it as being too late. Ken was forced to travel out of town to negotiate a purchase of sugar from an alternate supplier. Despite this, Ken has been unable to purchase the quantity of sugar needed to meet his Christmas orders and has had to turn down numerous regular customers, some of whom have indicated that they will purchase candy elsewhere in the future. What sugar Ken has been able to purchase has cost him ten 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 customers who have indicated that they will discontinue doing business with him, punitive damages for failure to meet the contracted delivery date, and any other damages the court may find to be appropriate in these circumstances. Sweet claims that Ken is limited to compensatory damages. Identify and define the types and amounts of damages that are most likely to be awarded in this case and fully explain why such damages should be awarded.
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