My Documents
Free Template · No Sign-UpLeer en Español →

DEED OF RELEASE AND SETTLEMENT AGREEMENT (VEHICLE ACCIDENT) Template — 🇳🇬 Nigeria

This Deed of Release and Settlement Agreement is a private contractual document under Nigerian common law principles of contract and tort. While not a mandatory government form, it is legally enforceable if it meets general contract requirements, including valid consideration and intent. It is highly recommended that this document be signed by all parties, witnessed, and preferably notarized by a Notary Public or Commissioner for Oaths to enhance its enforceability and deter future challenges. This agreement aims to provide a full and final settlement, but it does not replace official accident reports filed with the Federal Road Safety Corps (FRSC) or the Nigeria Police. Consult with a qualified Nigerian legal practitioner for specific advice regarding your circumstances.

Informational only, not legal advice. Have high-value or high-risk agreements reviewed by a licensed attorney.

Click any text in the document below to edit it before downloading.

DEED OF RELEASE AND SETTLEMENT AGREEMENT (VEHICLE ACCIDENT)

This Deed of Release and Settlement Agreement serves as a private contract between parties involved in a vehicle accident, releasing one party from further liability for claims arising from the incident in exchange for an agreed settlement. It provides finality and prevents future lawsuits related to the specific accident.

1. PARTIES

This Deed of Release and Settlement Agreement (hereinafter referred to as "this Agreement") is made and entered into on this [DAY OF AGREEMENT (E.G., 1ST, 2ND, 3RD)] day of [MONTH OF AGREEMENT (E.G., JANUARY, FEBRUARY)], [YEAR OF AGREEMENT (E.G., 2023)] BETWEEN: [RELEASOR'S FULL NAME] of [RELEASOR'S ADDRESS], (Phone: [RELEASOR'S PHONE NUMBER], Email: [RELEASOR'S EMAIL ADDRESS], National Identification Number (NIN): [RELEASOR'S NATIONAL IDENTIFICATION NUMBER (NIN)], Driver's License Number: [RELEASOR'S DRIVER'S LICENSE NUMBER]) (hereinafter referred to as the "Releasor", which expression shall where the context so admits include his heirs, executors, administrators, personal representatives and assigns) of the FIRST PART; AND [RELEASEE'S FULL NAME (OR COMPANY NAME)] of [RELEASEE'S ADDRESS], (Phone: [RELEASEE'S PHONE NUMBER], Email: [RELEASEE'S EMAIL ADDRESS], National Identification Number (NIN): [RELEASEE'S NATIONAL IDENTIFICATION NUMBER (NIN) (IF INDIVIDUAL)], Driver's License Number: [RELEASEE'S DRIVER'S LICENSE NUMBER (IF INDIVIDUAL)] {{releaseeCompanyRcNumber? "Company Registration Number (RC): " + releaseeCompanyRcNumber: ""}}) (hereinafter referred to as the "Releasee", which expression shall where the context so admits include his heirs, executors, administrators, personal representatives, successors-in-title and assigns) of the SECOND PART. (The Releasor and Releasee are hereinafter collectively referred to as the "Parties" and individually as a "Party").

2. BACKGROUND AND ACCIDENT DETAILS

WHEREAS: a. An unfortunate vehicle accident (hereinafter referred to as "the Accident") occurred on or about [DATE OF ACCIDENT] at approximately [TIME OF ACCIDENT] at [LOCATION OF ACCIDENT]. b. The Accident involved a vehicle owned/driven by the Releasor and a vehicle owned/driven by the Releasee. c. The Releasor alleges to have sustained [SPECIFIC ITEMS COVERED BY SETTLEMENT (E.G., VEHICLE REPAIRS, MEDICAL BILLS, PAIN AND SUFFERING)] as a result of the Accident. d. The Parties desire to reach a full and final settlement of all claims, demands, actions, causes of action, and damages of any kind whatsoever, known or unknown, suspected or unsuspected, arising out of or relating to the Accident. e. This Agreement is an accord and satisfaction intended to completely resolve all disputes and potential litigation between the Parties concerning the Accident.

3. VEHICLE INFORMATION

The vehicles involved in the Accident are identified as follows: a. Releasor's Vehicle: Make: [RELEASOR'S VEHICLE MAKE] Model: [RELEASOR'S VEHICLE MODEL] Year: [RELEASOR'S VEHICLE YEAR] Vehicle Identification Number (VIN): [RELEASOR'S VEHICLE IDENTIFICATION NUMBER (VIN)] Registration Number: [RELEASOR'S VEHICLE REGISTRATION NUMBER] Odometer Reading (at time of accident or assessment): [RELEASOR'S VEHICLE ODOMETER READING (KM)] km b. Releasee's Vehicle: Make: [RELEASEE'S VEHICLE MAKE] Model: [RELEASEE'S VEHICLE MODEL] Year: [RELEASEE'S VEHICLE YEAR] Vehicle Identification Number (VIN): [RELEASEE'S VEHICLE IDENTIFICATION NUMBER (VIN)] Registration Number: [RELEASEE'S VEHICLE REGISTRATION NUMBER] Odometer Reading (at time of accident or assessment): [RELEASEE'S VEHICLE ODOMETER READING (KM)] km

4. SETTLEMENT CONSIDERATION

In consideration of the mutual covenants and agreements contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Releasee agrees to pay the Releasor the sum of NGN [SETTLEMENT AMOUNT (₦)] (Nigerian Naira) (hereinafter referred to as the "Settlement Sum"). The Settlement Sum shall be paid by [METHOD OF PAYMENT] on or before the execution of this Agreement. This Settlement Sum is intended to cover [SPECIFIC ITEMS COVERED BY SETTLEMENT (E.G., VEHICLE REPAIRS, MEDICAL BILLS, PAIN AND SUFFERING)] and all other claims, losses, or damages arising from the Accident.

5. RELEASE AND DISCHARGE

a. For and in consideration of the Settlement Sum, the Releasor, for himself, his heirs, executors, administrators, personal representatives, agents, and assigns, does hereby fully and forever release, acquit, and discharge the Releasee, his heirs, executors, administrators, personal representatives, agents, employees, insurers, successors, and assigns, from any and all claims, demands, actions, causes of action, suits, debts, sums of money, accounts, reckonings, bonds, bills, specialties, covenants, contracts, controversies, agreements, promises, variances, trespasses, damages, judgments, extents, executions, and liabilities whatsoever, both in law and in equity, known or unknown, suspected or unsuspected, liquidated or unliquidated, which the Releasor ever had, now has, or hereafter can, shall, or may have against the Releasee arising out of or in any way related to the Accident, including but not limited to claims for personal injury, property damage, medical expenses, lost wages, pain and suffering, and any other losses or damages, whether direct or consequential. b. This release is a full and final settlement and discharge of all claims, whether known or unknown, and the Releasor expressly waives any rights or benefits that he may have under any statute or common law principle that would otherwise limit the scope of this release to known claims.

6. REPRESENTATIONS AND WARRANTIES

a. The Releasor represents and warrants that he is the sole owner of the claims released herein and has not assigned or transferred any portion thereof to any other person or entity. b. The Releasor further represents and warrants that he has received no medical advice that contradicts this settlement and that he is not relying on any representations or statements made by the Releasee or his agents concerning the extent of his injuries or damages. c. The Parties each represent and warrant that they have the full legal capacity and authority to enter into this Agreement and to be bound by its terms.

7. INDEMNIFICATION

The Releasor agrees to indemnify and hold harmless the Releasee from and against any and all claims, demands, actions, liabilities, costs, and expenses (including reasonable legal fees) that may be asserted against the Releasee by any third party claiming by, through, or under the Releasor, or otherwise arising out of or related to the Accident, which are not expressly covered by this Agreement.

8. GOVERNING LAW AND JURISDICTION

This Agreement shall be governed by and construed in accordance with the laws of the Federal Republic of Nigeria, and specifically the laws of [STATE FOR GOVERNING LAW AND JURISDICTION] State. The Parties irrevocably submit to the exclusive jurisdiction of the High Courts of [STATE FOR GOVERNING LAW AND JURISDICTION] State for the purpose of any suit, action, or other proceeding arising out of or relating to this Agreement.

9. ENTIRE AGREEMENT

This Agreement constitutes the entire agreement between the Parties with respect to the subject matter hereof and supersedes all prior discussions, negotiations, and agreements, whether oral or written, relating to the Accident. No amendment, modification, or waiver of any provision of this Agreement shall be effective unless made in writing and signed by both Parties.

10. SEVERABILITY

If any provision of this Agreement is held to be invalid, illegal, or unenforceable by a court of competent jurisdiction, such provision shall be severed from this Agreement, and the remaining provisions shall remain in full force and effect.

11. COUNTERPARTS

This Agreement may be executed in any number of counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. Facsimile or electronic signatures shall be deemed original for all purposes.

12. NOTICES

All notices, requests, demands, and other communications under this Agreement shall be in writing and shall be deemed to have been duly given when delivered personally, sent by registered mail, or transmitted by email to the addresses specified in Section 1 of this Agreement, or to such other address as a Party may designate by written notice to the other Party.

13. DISPUTE RESOLUTION

Any dispute or difference arising out of or in connection with this Agreement, including any question regarding its existence, validity, or termination, shall first be amicably resolved by the Parties. If the Parties are unable to resolve the dispute amicably within a period of thirty (30) days, then the dispute shall be referred to mediation in accordance with the provisions of the Lagos State Multi-Door Courthouse Law or any other applicable mediation rules in Nigeria. If mediation fails, the dispute shall be referred to litigation in the High Court of [STATE FOR GOVERNING LAW AND JURISDICTION] State.

SIGNATURES

Releasor — Signature

Printed Name: ________________________

Date: ______________

Witness to Releasor — Signature

Printed Name: ________________________

Date: ______________

Releasee — Signature

Printed Name: ________________________

Date: ______________

Witness to Releasee — Signature

Printed Name: ________________________

Date: ______________

Notary Public / Commissioner for Oaths — Signature

Printed Name: ________________________

Date: ______________

About This DEED OF RELEASE AND SETTLEMENT AGREEMENT (VEHICLE ACCIDENT) Template

After a car accident is settled — repairs paid for, compensation agreed — a Deed of Release is what closes the matter for good, with both sides confirming in writing that neither will come back later with a further claim over the same incident.

The FRSC and police handle the official accident report and any investigation, but a Deed of Release is a private agreement between the two parties that resolves the financial and legal side without going through court. It's enforceable as an ordinary contract under Nigerian law, drawing on the common law principle of accord and satisfaction — an agreed settlement that discharges the underlying claim once it's paid.

A usable deed identifies both parties fully (names, addresses, phone numbers, NIN or driver's licence, and company registration number if either is a business), describes the accident itself — date, time, location, and a factual account of what happened — and identifies the vehicles involved by registration number, make and model, and chassis number where available. The settlement section is the financial core: the amount paid in Naira, how it was paid, and exactly what it covers, whether that's vehicle repairs, medical costs, or lost income.

The clause that actually does the work is the release language itself — a clear statement that the releasing party gives up all claims, known or unknown, arising from that specific incident, in exchange for the settlement received. That's what stops either side from reopening the matter later. Both parties should sign, ideally with a witness each, and while notarization isn't strictly required for a private contract like this, it's worth doing for anything beyond a minor fender-bender, since it makes the document harder to challenge later. Stamp duty may also apply depending on the state and the settlement amount.

It's worth attaching the FRSC accident report and police extract as supporting documents where they exist — they corroborate the facts and strengthen the deed if a dispute somehow arises later despite the release. Nigerian limitation periods for this kind of civil claim generally run six years, so there's no need to rush an informal settlement, but leaving it unsettled and undocumented is what tends to cause problems: without a signed release, either party can still come back with a further claim over the same accident, even after money has changed hands.

Settling informally after an accident without a signed release leaves the door open for either party to reopen the matter months later; the deed is what actually closes it.