a. Example: A toy store contracts with a department store to deliver a specified number of dolls by the end of November, just in time for Christmas shopping. When the toy store has not delivered the specified number of dolls as agreed, it is a breach of contract. The department store can sue for compensatory damages, initial costs the department store paid to the toy company. The toy store can also sue for consequential damages, the lost profits the department store incurred because it had to pay to hire a new manufacturer to do the job that the toy store failed to do and because it could not sell its dolls prior to the Christmas season. Hence, the department store can sue for both compensatory and consequential damages.