A hire purchase agreement is a contract between a buyer and a seller where the buyer agrees to purchase an item in installments. The seller retains ownership of the item until the buyer has paid off the total amount. This type of agreement is commonly used when buying a car, bike, or tricycle (also known as keke napep) in Nigeria.
When writing a hire purchase agreement, it`s important to ensure that all parties involved understand the terms and conditions of the agreement. Here is a sample hire purchase agreement for a car, bike, or tricycle:
HIRE PURCHASE AGREEMENT
This Hire Purchase Agreement (the „Agreement”) is made on [Date] (the „Effective Date”) between [Seller`s Name and Address] (the „Seller”) and [Buyer`s Name and Address] (the „Buyer”).
1. AGREEMENT TO SELL AND PURCHASE
The Seller agrees to sell and the Buyer agrees to purchase the [Car/Bike/Tricycle (Keke Napep)] (the „Vehicle”) for the total purchase price of [Total Purchase Price] payable in [Number of Installments] monthly installments of [Installment Amount] each.
2. PAYMENTS
The Buyer shall make monthly payments to the Seller in the amount of [Installment Amount] on the [Payment Due Date] of each month. The first payment is due on [Date of First Payment].
3. OWNERSHIP OF VEHICLE
The Seller shall remain the legal owner of the Vehicle until the Buyer has made all payments under this Agreement. On completion of all payments, the Seller shall transfer ownership to the Buyer by executing and delivering to the Buyer a bill of sale.
4. DEFAULT
In the event that the Buyer fails to make any payment as required under this Agreement, the Seller shall have the right to terminate this Agreement and repossess the Vehicle without notice. The Buyer shall not be entitled to any refund of payments made to the Seller.
5. MAINTENANCE AND REPAIRS
The Buyer shall be responsible for the maintenance and repair of the Vehicle during the term of this Agreement. The Seller shall not be responsible for any repair costs or expenses incurred by the Buyer.
6. INSURANCE
The Buyer shall keep the Vehicle insured for the duration of the Agreement. The insurance policy shall be in the Buyer`s name and shall name the Seller as the loss payee.
7. GOVERNING LAW
This Agreement shall be governed by and construed in accordance with the laws of [State/Province/Country].
8. ENTIRE AGREEMENT
This Agreement constitutes the entire agreement between the parties and supersedes all prior negotiations, understandings, and agreements between the parties.
9. AMENDMENTS
This Agreement may not be amended or modified except in writing signed by both the Seller and the Buyer.
IN WITNESS WHEREOF, the parties have executed this Hire Purchase Agreement as of the Effective Date.
SELLER: ______________________________________________
BUYER: _______________________________________________
CONCLUSION
When writing a hire purchase agreement, it`s important to ensure that all parties involved understand the terms and conditions of the agreement. The agreement should be written in simple language and include all necessary information such as payment terms, ownership of the vehicle, and default clauses. By following the above sample and ensuring that your agreement covers all the necessary details, you can ensure a smooth transaction for both parties.