Psi Co owned a ship called The Greek that was worth $15 million.It intended to use that ship to perform a contract with Omega Inc that required it to deliver Omega's widgets from Vancouver to Los Angeles.Wilson negligently created a fire that destroyed The Greek.Psi Co wanted to buy a replacement ship, called The Athenian, for the purpose of performing its contract with Omega, but it could not immediately afford the full purchase price.Psi Co therefore rented a ship, called The Canadian, for $2 million and used it to perform its contract with Omega.After being paid by Omega, Psi Co bought The Athenian for $15 million.Psi Co has successfully sued Wilson for negligence.The court agrees that Psi Co is entitled to $15 million for the loss of its original ship.Psi Co, however, claims that it is also entitled to $2 million, representing the money that it was required to pay in order to rent The Canadian.Which of the following statements is TRUE with respect to Psi Co's claim for $2 million?
A) That claim is properly decided under the concept of an intervening act.
B) That claim will probably fail because there was a lack of factual causation.
C) That claim will probably fail because there was no duty of care.
D) That claim traditionally would have failed because the relevant loss is partially attributable to the plaintiff's own impecuniosity.
E) That claim will be decided by the crumbling skull rule.
Correct Answer:
Verified
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