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Plantilla de HIRE PURCHASE AGREEMENT FOR MOTOR VEHICLE — 🇳🇬 Nigeria

This Hire Purchase Agreement is a critical legal document in Nigeria, governed primarily by the Hire-Purchase Act, Cap H4, Laws of the Federation of Nigeria 2004. It ensures that ownership of the motor vehicle remains with the seller (Owner) until the buyer (Hirer) completes all payments, offering protection for both parties in installment payment scenarios. While the agreement itself is a private contract, it forms the basis for eventual change of ownership registration with state Motor Vehicle Administration Agencies (MVAA) and the Federal Road Safety Corps (FRSC) upon full payment. Users are strongly advised to ensure all mandatory disclosures and statutory notices from the Act are included and understood, and to consult with a legal professional for specific advice tailored to their circumstances, as state-specific requirements for vehicle registration and transfer can vary.

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HIRE PURCHASE AGREEMENT FOR MOTOR VEHICLE

This Hire Purchase Agreement for Motor Vehicle ("Agreement") sets out the terms and conditions under which the Owner agrees to let and the Hirer agrees to take on hire the specified motor vehicle, with an option to purchase it upon fulfilling all payment obligations. It is a legally binding contract governed by the laws of Nigeria.

1. PARTIES

This Hire Purchase Agreement ("Agreement") is made and entered into on this [AGREEMENT DATE] at [AGREEMENT LOCATION (CITY, STATE)]. BETWEEN: [OWNER'S FULL NAME (OR COMPANY NAME)] of [OWNER'S ADDRESS], holding National Identification Number (NIN) [OWNER'S NIN (NATIONAL IDENTIFICATION NUMBER)] and Bank Verification Number (BVN) [OWNER'S BVN (BANK VERIFICATION NUMBER)] (hereinafter referred to as the "Owner", which expression shall where the context so admits include its successors-in-title and assigns). AND [HIRER'S FULL NAME] of [HIRER'S ADDRESS], holding National Identification Number (NIN) [HIRER'S NIN (NATIONAL IDENTIFICATION NUMBER)] and Bank Verification Number (BVN) [HIRER'S BVN (BANK VERIFICATION NUMBER)] (hereinafter referred to as the "Hirer", which expression shall where the context so admits include its personal representatives and assigns).

2. RECITALS

WHEREAS the Owner is the lawful owner of the motor vehicle described in Section 3 below. WHEREAS the Hirer desires to acquire the said motor vehicle on a hire purchase basis, and the Owner has agreed to let the vehicle to the Hirer under the terms and conditions stipulated herein. WHEREAS the parties acknowledge that this Agreement is subject to the provisions of the Hire-Purchase Act, Cap H4, Laws of the Federation of Nigeria 2004.

3. VEHICLE DESCRIPTION

The motor vehicle subject to this Agreement (hereinafter referred to as the "Vehicle") is described as follows: Make: [VEHICLE MAKE] Model: [VEHICLE MODEL] Year of Manufacture: [VEHICLE YEAR OF MANUFACTURE] Vehicle Identification Number (VIN) / Chassis Number: [VEHICLE IDENTIFICATION NUMBER (VIN) / CHASSIS NUMBER] Engine Number: [VEHICLE ENGINE NUMBER] Registration Number (if any): [VEHICLE REGISTRATION NUMBER (PLATE NO.)] Colour: [VEHICLE COLOUR]

4. FINANCIAL TERMS

4.1. Cash Price: The Cash Price of the Vehicle is NGN [CASH PRICE (₦)] (Naira Only). 4.2. Hire-Purchase Price: The total Hire-Purchase Price of the Vehicle, including the deposit and all installments, is NGN [TOTAL HIRE-PURCHASE PRICE (₦)] (Naira Only). 4.3. Deposit: The Hirer shall pay to the Owner a non-refundable deposit of NGN [DEPOSIT AMOUNT (₦)] (Naira Only) on or before the execution of this Agreement. 4.4. Installments: The balance of the Hire-Purchase Price, being NGN [AMOUNT OF EACH INSTALLMENT (₦)] (Naira Only), shall be paid by the Hirer to the Owner in [NUMBER OF INSTALLMENTS] ([NUMBER OF INSTALLMENTS (IN WORDS)]) equal installments of NGN [AMOUNT OF EACH INSTALLMENT (₦)] (Naira Only) each. These installments shall be paid [INSTALLMENT FREQUENCY (E.G., WEEKLY, MONTHLY)], commencing on [DATE OF FIRST INSTALLMENT PAYMENT] and continuing on the same day of each subsequent [INSTALLMENT FREQUENCY (E.G., WEEKLY, MONTHLY)] until the full Hire-Purchase Price is paid. 4.5. True Rate of Interest: The true rate of interest applicable to this Hire Purchase Agreement is [TRUE RATE OF INTEREST (%)]% per annum.

5. OWNERSHIP AND TITLE

5.1. The Vehicle shall remain the sole and absolute property of the Owner, and title to the Vehicle shall not pass to the Hirer until all sums due under this Agreement, including the deposit and all installments, have been fully paid to the Owner. 5.2. Upon full payment of the Hire-Purchase Price and fulfillment of all other terms and conditions of this Agreement, the Owner shall transfer title and ownership of the Vehicle to the Hirer. The Hirer shall bear all costs associated with the transfer of ownership, including but not limited to registration fees, taxes, and stamp duties.

6. HIRER'S OBLIGATIONS

The Hirer hereby agrees and undertakes: 6.1. To take good care of the Vehicle and keep it in good repair and running condition, ordinary wear and tear excepted. 6.2. To insure the Vehicle at all times during the subsistence of this Agreement against all risks, including but not limited to loss, damage, and third-party liability, with a reputable insurance company approved by the Owner. The insurance policy shall be in the joint names of the Owner and the Hirer, or with the Owner's interest noted thereon. The Hirer shall provide proof of such insurance to the Owner upon request. The current insurance company is [INSURANCE COMPANY NAME] with policy number [INSURANCE POLICY NUMBER]. 6.3. To use the Vehicle solely for [DESCRIPTION OF PERMITTED USE OF VEHICLE] and not for any illegal, unauthorized, or dangerous purpose. 6.4. Not to sell, lease, mortgage, pledge, charge, or otherwise encumber the Vehicle or any of the Hirer's rights under this Agreement without the prior written consent of the Owner. 6.5. To permit the Owner or its authorized agents to inspect the Vehicle at all reasonable times upon reasonable notice. 6.6. To promptly notify the Owner of any accident, damage, or theft involving the Vehicle. 6.7. To indemnify the Owner against any loss, damage, costs, or expenses incurred by the Owner as a result of the Hirer's breach of this Agreement.

7. OWNER'S OBLIGATIONS AND WARRANTIES

The Owner hereby warrants and agrees: 7.1. That the Hirer shall have quiet possession of the Vehicle so long as the Hirer is not in breach of this Agreement. 7.2. That the Vehicle is free from all encumbrances at the time of delivery to the Hirer. 7.3. That the Vehicle is of merchantable quality and reasonably fit for the purpose for which it is hired, subject to any defects specifically disclosed to the Hirer prior to the execution of this Agreement. 7.4. To deliver a copy of this Agreement to the Hirer within 14 days of its execution.

8. DEFAULT AND REMEDIES

8.1. The Hirer shall be deemed to be in default if: a. The Hirer fails to pay any installment or any other sum due under this Agreement on its due date. b. The Hirer breaches any other term or condition of this Agreement. c. The Hirer becomes bankrupt or insolvent, or makes any arrangement with his creditors. 8.2. Upon any default by the Hirer, the Owner shall give written notice to the Hirer specifying the default and requiring it to be remedied within a reasonable period, not less than fourteen (14) days. 8.3. If the Hirer fails to remedy the default within the specified period, the Owner shall have the right, subject to the provisions of the Hire-Purchase Act, Cap H4, LFN 2004, to terminate this Agreement and repossess the Vehicle. Where the Hirer has paid 50% or more of the Hire-Purchase Price, the Owner shall not enforce any right to recover possession of the goods otherwise than by action in court. 8.4. Upon termination of this Agreement and repossession of the Vehicle, the Hirer shall be liable for any outstanding arrears of installments, damages for any breach of this Agreement, and the reasonable costs of repossession and repair of the Vehicle.

9. HIRER'S RIGHT TO TERMINATE

9.1. The Hirer may terminate this Agreement at any time by giving written notice to the Owner and returning the Vehicle to the Owner in good condition, subject to payment of any outstanding installments and any other sums due under this Agreement up to the date of termination, as well as any reasonable costs incurred by the Owner in connection with the termination. 9.2. Upon such termination, the Hirer shall not be entitled to a refund of any deposit or installments already paid, save as may be provided by the Hire-Purchase Act.

10. STATUTORY NOTICE

NOTICE RIGHT OF HIRER TO TERMINATE AGREEMENT 1. The Hirer may put an end to this Agreement by giving notice of termination in writing to any person who is entitled to receive the sums payable under the Agreement. 2. He must then return the goods at his own expense to the Owner and must pay any installments which are in arrears at the time of giving notice, and if (when those installments have been paid) the total amount which he has paid under the Agreement is less than the amount specified in the Agreement as 'the minimum amount which must be paid by way of hire-purchase price', he must also pay enough to make up that amount. 3. If the goods have been damaged owing to the Hirer having failed to take reasonable care of them, the Owner may sue him for the amount of the damage. RIGHT OF OWNER TO REPOSSESS GOODS 4. If the Hirer fails to pay any installment or to observe any other term of this Agreement, the Owner may terminate the Agreement and take back the goods. However, if the Hirer has paid 50% or more of the Hire-Purchase Price, the Owner cannot take back the goods without a court order. 5. If the Owner terminates the Agreement and takes back the goods, the Hirer may be liable for any outstanding arrears of installments and for any damage to the goods.

11. ASSIGNMENT

Neither party may assign or transfer its rights or obligations under this Agreement without the prior written consent of the other party. However, the Owner may assign its rights to receive payments hereunder to a financial institution or other entity without the Hirer's consent, provided such assignment does not increase the Hirer's obligations.

12. GOVERNING LAW AND DISPUTE RESOLUTION

12.1. This Agreement shall be governed by and construed in accordance with the laws of the Federal Republic of Nigeria. 12.2. Any dispute, controversy, or claim arising out of or relating to this Agreement, or the breach, termination, or invalidity thereof, shall first be resolved through amicable negotiations between the parties. If such negotiations fail within thirty (30) days, the dispute shall be referred to mediation. If mediation fails, the dispute shall be submitted to a court of competent jurisdiction in Nigeria.

13. 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. No amendment, modification, or waiver of any provision of this Agreement shall be effective unless in writing and signed by both parties.

14. 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.

15. EXECUTION

IN WITNESS WHEREOF, the parties have executed this Agreement on the date first above written.

SIGNATURES

Owner — Signature

Printed Name: ________________________

Date: ______________

Witness to Owner — Signature

Printed Name: ________________________

Date: ______________

Hirer — Signature

Printed Name: ________________________

Date: ______________

Witness to Hirer — Signature

Printed Name: ________________________

Date: ______________

Sobre esta Plantilla de HIRE PURCHASE AGREEMENT FOR MOTOR VEHICLE

A Hire Purchase Agreement is how most vehicle financing in Nigeria actually works in practice: the buyer takes possession and pays in installments, but the financier keeps legal ownership of the vehicle until the final payment clears.

Legal title stays with the owner — usually a finance company or dealer — throughout the payment period. The person driving the car, the hirer, only has the right to use it, with an option to buy once every installment is paid. That's the core difference from an ordinary sale agreement, where title passes the moment the deal is signed. Among commercial drivers the arrangement is often called a "work and pay" contract, since the vehicle's own earnings are what fund the installments.

The governing law is the Hire-Purchase Act, Cap H4, Laws of the Federation of Nigeria 2004. It's an old statute, but it still sets out what a valid agreement must contain: the cash price of the vehicle, the total hire-purchase price, the deposit, the amount and due dates of each installment, and the true rate of interest. It also requires a specific statutory notice informing the hirer of their rights — an agreement missing this notice, or omitting the cash price, risks being unenforceable. Beyond the numbers, the vehicle itself needs full identification: make, model, year, VIN or chassis number, engine number, and registration.

A properly drafted agreement also covers the hirer's obligations — insuring the vehicle (usually with the owner's interest noted on the policy), keeping it in good repair, and using it only for the purposes stated in the contract — plus what happens if a payment is missed. The Act gives hirers real protection here: once 50% or more of the hire-purchase price has been paid, the owner can't simply repossess the vehicle. They need a court order. Below that threshold, repossession can happen more directly, which is why it's worth checking exactly where that line sits in any agreement before signing.

Notarization isn't legally required, but it's common practice for an agreement this size, along with witnesses for both signatures — both add weight if the agreement is ever challenged. Stamp duty may also apply and should be confirmed with the Federal Inland Revenue Service or the relevant state revenue authority.

Once the final installment clears, title transfers to the hirer, and the change-of-ownership process — Form MVA 5, then registration update with the state Motor Vehicle Administration Agency and the FRSC — follows the same path as any other vehicle sale.

Check the repossession clause before signing — hire purchase terms in Nigeria typically let the financier reclaim the vehicle on default, and the conditions for that vary from one agreement to the next.