Walter Widget, producer, has entered into a contract to purchase a new production machine from Sam Supplier to be delivered on December 1. Walter tells Sam that he must have the machine on that date because he must expand his plant production to meet increased demand. The contract has a provision that states, "The buyer's remedies are limited to repair or replacement." The machine delived on December 1 will not produce proper widgets. Sam cannot repair the machine and he has no other machines in his inventory. Walter purchases another machine from a different supplier, at a higher price, on December 15. He then sues Sam for the extra amount he had to pay for the new machine and two weeks lost profits. What liability, if any, does Sam have?