Simple Asset Purchase Agreement for Nigeria

Simple Asset Purchase Agreement Template for Nigeria

A comprehensive legal document governed by Nigerian law that facilitates the transfer of ownership of assets from a seller to a buyer. This agreement outlines the terms and conditions of the sale, including the purchase price, payment terms, warranties, and transfer mechanics. It incorporates essential provisions required under Nigerian commercial law, including stamp duty requirements and relevant tax considerations. The document is structured to protect both parties' interests while ensuring compliance with local regulations and providing clear remedies in case of breach.

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What is a Simple Asset Purchase Agreement?

The Simple Asset Purchase Agreement is a fundamental commercial document used in Nigerian business transactions for the transfer of assets between parties. This agreement is particularly useful for straightforward asset sales where a comprehensive due diligence process may not be necessary. It complies with Nigerian contract law requirements and includes provisions for stamp duty registration, which is mandatory for enforceability. The document is suitable for various types of assets, from equipment and vehicles to intellectual property, and can be used by both individuals and corporations. It includes essential elements such as asset description, purchase price, payment terms, warranties, and transfer mechanics, while allowing for customization based on specific transaction requirements. The agreement provides a balanced framework that protects both buyer's and seller's interests while ensuring compliance with local regulations and commercial practices.

What sections should be included in a Simple Asset Purchase Agreement?

1. Parties: Identification and details of the seller and buyer, including full legal names, addresses, and registration numbers if companies

2. Background: Context of the transaction and brief description of the asset being sold

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

4. Sale and Purchase: Core agreement to sell and purchase the asset, including the basic terms of the transaction

5. Purchase Price: Specification of the purchase price, payment terms, and payment method

6. Completion: Details of when and how the sale will be completed, including delivery arrangements

7. Seller's Warranties: Basic warranties regarding ownership, right to sell, and condition of the asset

8. Asset Condition: Description of the current condition of the asset and any known defects

9. Risk and Title: When risk and title pass from seller to buyer

10. Governing Law: Specification that Nigerian law governs the agreement

11. Entire Agreement: Clause stating this document represents the entire agreement between parties

12. Execution: Signature blocks and execution details

What sections are optional to include in a Simple Asset Purchase Agreement?

1. Due Diligence: Required when buyer needs to conduct investigations before completion

2. Intellectual Property: Needed when the asset includes or involves IP rights

3. Tax Provisions: Detailed tax arrangements when significant tax implications exist

4. Registration Requirements: Include when the asset requires official registration of transfer

5. Condition Precedents: When completion is subject to certain conditions being met

6. Post-Completion Obligations: Required when parties have ongoing obligations after completion

7. Non-Competition: Include when seller needs to be restricted from competing

8. Confidentiality: When transaction details need to be kept confidential

What schedules should be included in a Simple Asset Purchase Agreement?

1. Asset Description: Detailed description and specification of the asset being sold

2. Inventory List: If the asset includes multiple items or components

3. Encumbrances: List of any existing encumbrances, liens, or charges on the asset

4. Required Consents: List of third-party consents needed for the transfer

5. Transfer Documents: Forms and documents required to effect the transfer

6. Payment Schedule: If payment is to be made in installments

7. Condition Report: Detailed report on the condition of the asset at time of sale

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Nigeria

Publisher

Genie AI

Document Type

Sale Agreement

Cost

Free to use
Relevant Industries

Manufacturing

Real Estate

Agriculture

Technology

Retail

Transportation

Energy

Construction

Healthcare

Education

Mining

Telecommunications

Financial Services

Hospitality

Relevant Teams

Legal

Finance

Procurement

Operations

Asset Management

Risk and Compliance

Commercial

Business Development

Property Management

Administrative

Relevant Roles

Chief Executive Officer

Managing Director

Chief Financial Officer

Finance Manager

Procurement Manager

Asset Manager

Business Development Manager

Operations Manager

Legal Counsel

Company Secretary

Commercial Director

Risk Manager

Compliance Officer

Property Manager

Fleet Manager

Equipment Manager

Investment Manager

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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