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Nigeria's free digital learning hub. Videos, lecture notes, practice questions and leaderboards aligned with CCMAS, NBTE, NCCE, WAEC, NECO, IJMB and JAMB curricula.
Banking and Finance · 200 Level
This is the complete lecture note for TAX 313 Business law (Mercantile law), prepared for Banking and Finance students at 200 Level. You can read it online below, open it in the full viewer, or download the PDF for offline study. It pairs with the course's video lectures, so you can read and watch together.
LA-NET | ONLINE LEARNING VIDEO PLATFORM FOR POST-SECONDARY & HIGHER INSTITUTION STUDENTS
LA-NET | ONLINE LEARNING VIDEO PLATFORM FOR POST-SECONDARY & HIGHER INSTITUTION STUDENTS TAX 313: Business Law (Mercantile Law) (2 Units C: LH 30) Course Code: TAX 313 Course Title: Business Law (Mercantile Law) Course Unit: 2 Units C Series 1 Foundations of Nigerian and International Business Legislation Series 2 Contractual Relationships: Contracts, Agency, Sales, Hire Purchase, and Carriage of Goods Series 3 Financial and Commercial Instruments: Negotiable Instruments, Money Lending, Suretyship, and Guarantees Series 4 Insurance, Banking, and the Administration of Justice in Nigeria Series 5 Corporate Structures: Civil vs. Criminal Liability, Property, Partnership, and Corporate Personality Series 1 Foundations of Nigerian and International Business Legislation Part 1.1 Sources of Nigerian Law 1.1.1 Historical development of Nigerian law 1.1.2 Primary sources: Constitution, legislation, case law 1.1.3 Secondary sources: Customary law, Islamic law, received English law Part 1.2 International Business Legislation 1.2.1 Role of international treaties and conventions 1.2.2 Influence of global trade organisations 1.2.3 Harmonisation of business laws across borders Part 1.3 Administration of Justice in Nigeria 1.3.1 Structure of the Nigerian judiciary 1.3.2 Court hierarchy and jurisdiction 1.3.3 Challenges in the administration of justice Introduction
LA-NET | ONLINE LEARNING VIDEO PLATFORM FOR POST-SECONDARY & HIGHER INSTITUTION STUDENTS Business transactions are never carried out in isolation, they are governed by rules that ensure fairness, order, and predictability. In Nigeria, these rules are derived from a variety of sources, including constitutional provisions, legislation, customary practices, and judicial decisions. Alongside these, international conventions and treaties influence how businesses operate across borders, ensuring that commerce is not restricted by national boundaries alone. A clear understanding of these foundations is vital for learners who wish to appreciate the environment in which business law functions. The aim of this Series is to equip you with knowledge of the sources of Nigerian law, the role of international legislation in shaping business activities, and the administration of justice in Nigeria. We shall commence this Series by examining the sources of Nigerian law, tracing their historical development and identifying the key elements that shape the legal system. Next, we will consider international business legislation, focusing on treaties, conventions, and the role of global organisations in harmonising laws. Finally, we will analyse the administration of justice in Nigeria, looking at the judiciary, the hierarchy of courts, and the challenges encountered in enforcing business legislation. Series Learning Outcomes Upon completing this Series, you should be able to: SLO 1.1 define the historical and primary sources of Nigerian law, SLO 1.2 explain the role of international treaties and conventions in regulating business, SLO 1.3 analyse the structure and jurisdiction of the Nigerian judiciary. 1.1 Sources Of Nigerian Law 1.1.1 Historical development of Nigerian law The historical development of Nigerian law refers to the gradual evolution of the legal system from indigenous customs to the modern framework influenced by colonial rule and post-independence reforms. Before colonialism, communities relied on customary law, which consisted of unwritten rules based on traditions and practices. With British colonisation, received English law was introduced, including statutes of general application and common law principles. After independence in 1960, Nigeria began to develop its own legislative framework, guided by the Constitution as the supreme law. Fill in the blank: Nigerian law before colonialism was largely based on __________.
LA-NET | ONLINE LEARNING VIDEO PLATFORM FOR POST-SECONDARY & HIGHER INSTITUTION STUDENTS Figure 1.1 Timeline of Nigerian law development 1.1.2 Primary sources: Constitution, legislation, case law The primary sources of Nigerian law are the most authoritative and binding rules. The Constitution is the supreme law, providing the framework for governance and fundamental rights. Legislation refers to laws enacted by the National Assembly and State Houses of Assembly. Case law, also called judicial precedent, consists of decisions made by courts that interpret statutes and establish binding principles. These sources ensure consistency and predictability in the legal system. Fill in the blank: The supreme law of Nigeria is the __________.
LA-NET | ONLINE LEARNING VIDEO PLATFORM FOR POST-SECONDARY & HIGHER INSTITUTION STUDENTS Box 1.1: Primary sources of Nigerian law Source Description & Authority Real-World Application (2026) The Constitution The 1999 Constitution (as amended) is the supreme law (Grundnorm). All other laws must align with it. If a section of the NTA 2025 is found to violate constitutional rights, the court will strike it down. Legislation (Statutes) Laws enacted by the National Assembly (Acts) or State Houses of Assembly (Laws). This is the most prolific source. The Nigeria Tax Act 2025 is the primary legislation governing current corporate and personal income taxes. Judicial Precedent Also known as Case Law or Stare Decisis. Lower courts must follow the legal reasoning of higher courts. A 2026 Supreme Court ruling on "Digital Presence" binds all lower Tax Appeal Tribunals across the country. Received English Law Consists of Common Law, Doctrines of Equity, and Statutes of General Application in force in England as of Jan 1, 1900. Used to fill gaps in local law, such as basic principles of contract or tort that haven't been codified yet. Customary & Islamic Law Indigenous norms and Sharia law, applicable primarily to personal matters (marriage, inheritance) among consenting parties. In Northern Nigeria, Sharia Courts of Appeal resolve tax-related inheritance disputes for Muslim estates. International Law Treaties and conventions signed by Nigeria. These must be "domesticated" (passed into local law) to be enforceable. Double Taxation Agreements (DTAs) with countries like the UK are enacted as local statutes to provide relief. 1.1.3 Secondary sources: Customary law, Islamic law, received English law
LA-NET | ONLINE LEARNING VIDEO PLATFORM FOR POST-SECONDARY & HIGHER INSTITUTION STUDENTS The secondary sources of Nigerian law supplement the primary sources. Customary law is based on traditions and practices of local communities, provided they are not repugnant to natural justice. Islamic law applies mainly in northern Nigeria, particularly in personal matters such as marriage and inheritance. Received English law includes statutes of general application and doctrines introduced during colonial rule, which still influence Nigerian jurisprudence today. Fill in the blank: Customary law is valid only if it is not __________ to natural justice. Table 1.1 Comparison of secondary sources of Nigerian law Feature Customary Law Islamic Law (Sharia) Received English Law Origin Indigenous traditions and norms of various ethnic groups. Divine revelation (Quran/Sunnah) and juristic schools (Maliki). British colonial legacy (Common Law, Equity, Statutes). Nature Organic and Flexible: Evolves with the social conscience of the community. Fixed but Interpreted: Based on religious texts and scholarly consensus. Formal and Precise: Based on recorded judicial precedents and old statutes. Primary Scope Marriage, land ownership, and succession (inheritance). Personal status, inheritance, and (in some states) criminal law. Commercial law, contracts, torts, and criminal procedure. Test of Validity Must not be repugnant to natural justice, equity, and good conscience. Must be applicable to Muslims or those who consent to its jurisdiction. Applies only where local Nigerian statutes are silent. Evidence Must be proved as a fact by witnesses (unless judicially noticed). Proven through recognized Islamic texts and expert testimony. Judicially noticed (the court is presumed to know the law). Geographic Reach Nationwide, but varies by ethnic group (Yoruba, Igbo, etc.). Primarily Northern and parts of Southwestern Nigeria. Nationwide as the "residual" law of the land.
LA-NET | ONLINE LEARNING VIDEO PLATFORM FOR POST-SECONDARY & HIGHER INSTITUTION STUDENTS Pilot Questions 1.1 Which source of Nigerian law is considered the supreme law of the land? What type of law was practised in Nigeria before colonial rule? Define case law and explain its importance in the Nigerian legal system. Which secondary source of Nigerian law applies mainly in northern Nigeria? Fill in the blank: Received English law was introduced during __________ rule. 1.2 International Business Legislation 1.2.1 Role of international treaties and conventions International treaties are formal agreements between countries that establish rules governing trade, investment, and other aspects of commerce. A convention is a multilateral treaty that sets out common standards for participating nations. These instruments help to reduce barriers to trade, promote cooperation, and ensure fairness in international business dealings. For example, conventions on carriage of goods by sea provide uniform rules that protect both exporters and importers. Fill in the blank: A convention is a type of __________ that sets common standards for nations.
LA-NET | ONLINE LEARNING VIDEO PLATFORM FOR POST-SECONDARY & HIGHER INSTITUTION STUDENTS Figure 1.2 Treaties and conventions in international business 1.2.2 Influence of global trade organisations Global trade organisations such as the World Trade Organization (WTO) play a central role in regulating international commerce. The WTO establishes rules for trade, resolves disputes, and promotes free and fair competition among nations. Other organisations, such as the International Chamber of Commerce (ICC), provide guidelines and model contracts that businesses can adopt. These institutions ensure that international transactions are conducted transparently and predictably. Fill in the blank: The organisation responsible for resolving disputes in international trade is the __________.
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