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ICAN Corporate and Business Law 2026 past questions and answers

This 2026 ICAN Corporate and Business Law set has 20 practice questions. Try these 5 free sample questions, tap a question to reveal the answer and explanation. Then practise the whole 2026 set with instant marking.

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Sample ICAN Corporate and Business Law 2026 questions

1. A state statute conflicts with an express provision of the Constitution of the Federal Republic of Nigeria. Which rule applies?
  1. The state statute prevails within that state
  2. The statute prevails if it was enacted later
  3. The Constitution prevails to the extent of the inconsistency
  4. The conflict is resolved by the National Assembly

Answer: C. The Constitution prevails to the extent of the inconsistency

The Constitution is supreme, and any other law is void to the extent that it is inconsistent with it. The later enactment of an ordinary statute cannot override the Constitution.

2. A supplier offers to sell a machine for ₦4 million. The buyer replies, 'I will buy it for ₦3.6 million.' The supplier does not respond. What is the legal effect of the buyer's reply?
  1. It is a counter-offer that rejects the original offer
  2. It is acceptance because the buyer intends to purchase
  3. It is an invitation to treat by the buyer
  4. It creates a contract unless the supplier objects

Answer: A. It is a counter-offer that rejects the original offer

A reply proposing a different price is a counter-offer, which ordinarily terminates the original offer. The buyer's willingness to buy does not make the reply an unqualified acceptance.

3. A seller contracts unconditionally to sell an identified, working generator that is ready for delivery. The parties agree that delivery and payment will occur next week, and make no separate agreement about ownership. Under the usual sale-of-goods rule, when does property in the generator pass to the buyer?
  1. Only when the buyer pays in full
  2. Only when the generator is physically delivered
  3. When the buyer inspects it next week
  4. When the contract is made

Answer: D. When the contract is made

For specific goods in a deliverable state under an unconditional contract, property ordinarily passes when the contract is made, unless a contrary intention appears. Deferred payment or delivery alone does not postpone the transfer.

4. A company authorises its purchasing agent to buy office furniture up to ₦2 million. The agent buys suitable desks for ₦1.8 million in the company's name. Which statement is correct?
  1. The company is not bound unless the board separately approves the purchase
  2. The company is bound because the agent acted within actual authority
  3. The agent alone is bound because the supplier dealt with the agent
  4. The company is bound only if it ratifies the purchase after delivery

Answer: B. The company is bound because the agent acted within actual authority

An agent's act within actual authority binds the principal. The agent acted for the company and within the stated spending limit, so separate ratification is unnecessary.

5. Two founders complete the required registration of their proposed company with the Corporate Affairs Commission. What is the principal legal effect of incorporation?
  1. The founders automatically become personally liable for all company debts
  2. The company becomes a partnership until it makes its first sale
  3. The company becomes a legal person distinct from its members
  4. The company may not own property until it appoints an auditor

Answer: C. The company becomes a legal person distinct from its members

On incorporation, the company becomes a separate legal person capable of holding property and incurring obligations in its own name. Its members are not automatically personally liable for every company debt.

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