Post Utme Unn 2024 Commerce Question 37

Practice objective / multiple choice question 37 from the 2024 Post Utme Unn Commerce examination.

Post Utme Unn 2024 Commerce Objective / Multiple Choice
Question 37 POST_UTME_UNN • 2024 • COMMERCE • objective

A sole trader has a business that specializes in providing catering services for events. The sole trader has a contract with a client to provide catering services for a wedding. However, the sole trader fails to deliver the services on time, resulting in the client incurring additional costs to find alternative catering services. What is the sole trader's liability in this situation?

Answer Options

Correct Answer A. The sole trader is liable for the additional costs incurred by the client, as they failed to deliver the services on time.
B. The sole trader is not liable for the additional costs, as they had a valid contract with the client.
C. The sole trader is liable for the additional costs, but only to the extent of the contract value.
D. The sole trader is not liable for the additional costs, as they were not responsible for the delay.
Correct Answer
A
Correct Option:
The sole trader is liable for the additional costs incurred by the client, as they failed to deliver the services on time.

About This Question

This is Post Utme Unn 2024 Commerce Question 37. It is one of the objective questions from the 2024 Post Utme Unn Commerce examination.

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