Pure Oil Company enters into a contract with QuikBilt,Inc.,to construct an offshore 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.

Question

Quizplus · Accepted Answer

Punitive damages are awarded to punish the defendant for egregious behavior and to deter others from engaging in similar conduct. In this case, if QuikBilt breached the duty of care and the contract by failing to construct the offshore oil pipeline to withstand specific conditions, Pure may be awarded punitive damages to punish QuikBilt and deter others from acting similarly in the future.

Pure Oil Company Enters into a Contract with QuikBilt,Inc