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 don or before November 15. Ken has informed Sweet that this particular order is to be used for the Christmas season business. 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 has been unable to purchase the quantity of sugar needed to meet his Christmas orders and has had to turn down numerous regular season customers, some of whom have indicated that they will purchase candy elsewhere in the future. The 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:

1. The higher price paid for sugar purchased elsewhere,

2. Lost profits from this years Christmas sales,

3. Future lost profits from customers who have indicated they will discontinue doing business with him,

4. Punitive damages for failure to meet the contracted delivery date.

Sweet claims Ken is limited to compensatory damages only.

What damages is Ken entitled to collect in this situation. Make sure you explain why or why not, particular damages are available.