A hire purchase agreement is a popular way to finance the purchase of goods and items in Nigeria, particularly for those who may not have access to traditional bank loans or credit facilities. This agreement is a legally binding contract between the seller (or dealer) and the buyer (or hirer) that outlines the terms of purchase and payment. In this article, we will provide a sample hire purchase agreement in Nigeria and discuss its key elements.

Sample Hire Purchase Agreement in Nigeria:

This Hire Purchase Agreement (“Agreement”) is made on [insert date] between [insert seller details] (“Seller”) and [insert buyer details] (“Buyer”).

1. Goods: The Seller agrees to sell and the Buyer agrees to purchase the following goods [insert description of goods] (“Goods”) for the total amount of [insert purchase price] (“Purchase Price”).

2. Deposit: The Buyer shall pay a deposit of [insert deposit amount] (“Deposit”) towards the purchase of the Goods.

3. Payment Terms: The balance of the Purchase Price shall be paid in [insert number of instalments] instalments of [insert amount] each, payable on [insert payment due date] (“Payment Due Date”). Payment shall be made by [insert payment method].

4. Delivery: The Seller shall deliver the Goods to the Buyer on or before [insert delivery date], subject to receipt of the Deposit and the first instalment.

5. Ownership: The Seller shall retain ownership of the Goods until the Buyer has paid the Purchase Price in full.

6. Default: If the Buyer defaults on any payment, the Seller shall have the right to terminate this Agreement and take possession of the Goods.

7. Insurance: The Buyer shall insure the Goods against loss, damage, or theft until ownership is transferred.

8. Warranties: The Seller warrants that the Goods are free from defects and fit for the purpose for which they are intended.

9. Indemnification: The Buyer shall indemnify the Seller against any claims, damages, or losses arising from the use of the Goods.

10. Governing Law: This Agreement shall be governed by and construed in accordance with the laws of Nigeria.

11. Entire Agreement: This Agreement constitutes the entire agreement between the parties and supersedes all prior negotiations, understandings, and agreements between the parties.

12. Amendments: This Agreement may only be amended in writing and signed by both parties.

13. Counterparts: This Agreement may be executed in counterparts, each of which shall be deemed an original but all of which together shall constitute one and the same instrument.

In conclusion, a hire purchase agreement is a useful financing option for individuals and businesses in Nigeria who want to acquire goods or assets without paying the full purchase price upfront. However, it is essential to understand the terms and conditions of the agreement and ensure that it is legally binding. As a professional, I recommend that anyone seeking to enter into a hire purchase agreement in Nigeria should seek legal advice to protect their interests.