Pure Oil Company enters into a contract with QuikBilt, Inc., to construct an oil pipeline to withstand specific conditions. If QuikBilt fails to meet this standard, which is construed as a breach of contract and a breach of a duty of care, Pure might be awarded punitive damages to
A. establish, as a matter of principle, that QuikBilt acted wrongfully.
B. provide Pure with funds for a foreseeable loss beyond the contract.
C. provide Pure with funds for its loss of the bargain.
D. punish QuikBilt and deter others from similar acts.
Answer:D
Pure Oil Company enters into a contract with QuikBilt, Inc., to construct an oil pipeline to withstand specific conditions. If QuikBilt fails to meet this standard, which is construed as a breach of contract and a breach of a duty of care, Pure might be awarded punitive damages to
A. establish, as a matter of principle, that QuikBilt acted wrongfully. B. provide Pure with funds for a foreseeable loss beyond the contract. C. provide Pure with funds for its loss of the bargain. D. punish QuikBilt and deter others from similar acts.