Question

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 recoverA. punitive damages.B. nominal damages.C. compensatory damages and consequential damages.D. compensatory damages, consequential damages, and punitive damages.

Answer 1

Answer:

C. Compensatory damages and consequential damages.

Explanation:

The reason is that the company can only sue Santa for its compensatory damage of paying 15% extra and consequential damages which are only claimable if the party to contract knows that not performing the contract will contribute to consequential damages which are here losses of sales which amount to 25% of sales.

Answer 2

Answer:

C. compensatory damages and consequential damages.

Explanation:

Compensatory damages are money awarded to a plaintiff to compensate for damages, injury, or another incurred loss.

Consequential damages are defined as damages that can be proven to have occurred because of the failure of one party to meet a contractual obligation. They go beyond the contract itself and into the actions that flow from the failure to fulfill. The type of claim giving rise to the damages can affect the rules or calculations associated with a given type of damages, including consequential damages.

Punitive damages is a non compensatory damages.