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

Options are:

A.  establish, as a matter of principle, that QuikBilt acted wrongfully.

B.   Pure with funds for a foreseeable loss beyond the contract.

C.   Pure with funds for its loss of the bargain.

D.   Punish QuikBilt and deter others from similar acts

D.   Punish QuikBilt and deter others from similar acts

Explanation:

Punitive Damages, often used in a law of tort, when the jury considered the acts of the tortfeasor or defendant to be either intentional, malicious, fraudulent, or violent in nature, and it is designed to do the following:

1. punish a defendant or tortfeasor and

2. discourage further such acts by the defendant or tortfeasor and others.

Therefore, in this case, if QuikBilt fails to meet the agreed standard, which is construed as a breach of contract and a breach of a duty of care, Pure might be awarded punitive damages to punish QuikBilt and deter others from similar acts. Because such acts is deemed malicious, fraudulent and intentional.

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