Hybrid Corporation Enters into a Contract with Insure Service, Inc

question 69

Multiple Choice

Hybrid Corporation enters into a contract with Insure Service, Inc. (ISI) , to obtain health insurance for Hybrid employees. If ISI breaches the contract and Hybrid is awarded compensatory damages, the purpose would be to

• A) establish, as a matter of principle, that ISI acted wrongfully.
• B) provide Hybrid with funds for a foreseeable loss beyond the contract.
• C) provide Hybrid with funds for its loss of the bargain.
• D) punish ISI and set an example to deter others from similar acts.

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Definitions:

Breach

The violation or non-fulfillment of a legal obligation, agreement, or duty.

UCC

An acronym for the Uniform Commercial Code, which regulates sales and commercial transactions in the United States to bring uniformity across state laws.

Goods

Tangible products or merchandise that are produced, bought, and sold in the course of business operations.

Incidental Damages

Compensation for additional unexpected expenses that arise directly from a breach of contract, beyond the direct loss or damage incurred.