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JAMB Commerce 1998 Question 37

Question 37

Law of Contract

A person who is cheated in a business transaction can seek legal remedy

  1. A.even if the agreement is verbal and the amount involved is large
  2. B.only if the business is a sole proprietorship whose owner is known
  3. C.regardless of the form of business organization
  4. D.only if the transaction is documented in a contract.
Show the answer and explanation

Answer: C (regardless of the form of business organization)

Explanation

The right to a legal remedy does not depend on whether the other party is a sole trader, partnership or company. Oral contracts can also be enforced, so a written contract is not always required.