The Down Payment Contract serves as a crucial legal instrument in Nigerian commercial transactions where advance payments are required before the completion of a purchase. This document is particularly important in high-value transactions across various sectors including real estate, automotive, and industrial equipment purchases. It provides security for both parties by clearly defining the terms of the down payment, its application toward the final purchase price, and the circumstances under which it may be refunded. The agreement must comply with Nigerian contract law, financial regulations, and consumer protection requirements, including the Central Bank of Nigeria's guidelines on financial transactions. It's commonly used when substantial deposits are required to secure a purchase, initiate production, or reserve goods or services.

1. Parties: Identification and details of all parties involved in the down payment agreement

2. Background: Context of the transaction and purpose of the down payment agreement

3. Definitions: Definitions of key terms used throughout the agreement

4. Down Payment Amount and Terms: Specific amount of the down payment and payment terms including method and timing

5. Main Transaction Details: Description of the primary purchase/transaction for which the down payment is being made

6. Payment Schedule: Timeline for the down payment and subsequent payments related to the main transaction

7. Purpose and Application of Down Payment: How the down payment will be applied to the total purchase price

8. Seller's Obligations: Responsibilities of the seller upon receipt of the down payment

9. Buyer's Obligations: Responsibilities of the buyer regarding the down payment and subsequent payments

10. Refund Conditions: Circumstances under which the down payment may be refunded

11. Default and Remedies: Consequences of default by either party and available remedies

12. Governing Law: Specification of Nigerian law as the governing law

13. Dispute Resolution: Process for resolving any disputes related to the down payment

14. Execution: Signature blocks and execution requirements