Contract Of Indemnity And Guarantee Template for Nigeria

The Contract of Indemnity and Guarantee is a crucial legal instrument in Nigerian business and financial transactions, commonly used when one party needs to provide financial security or assurance for another party's obligations. This document is particularly relevant in scenarios involving loans, commercial contracts, construction projects, and corporate transactions where additional security is required. The agreement must comply with Nigerian contract law and financial regulations, including requirements for writing and attestation under the Statute of Frauds. It typically details the scope of guaranteed obligations, claim procedures, and enforcement mechanisms, while also addressing specific Nigerian legal considerations such as stamp duty requirements and corporate authorization needs.

1. Parties: Identification of all parties including the Indemnifier/Guarantor, the beneficiary, and the principal debtor

2. Background: Context of the agreement, including the underlying transaction or relationship being guaranteed

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

4. Indemnity Obligations: Detailed scope of the indemnity, including specific losses, damages, or circumstances covered

5. Guarantee Obligations: Nature and extent of the guarantee, including whether it is continuing or limited

6. Duration and Termination: Period of effectiveness and circumstances under which the indemnity/guarantee can be terminated

7. Claims Procedure: Process for making claims under the indemnity or guarantee, including notice requirements and timeframes

8. Payment Terms: Terms and conditions for payments, including timing and method

9. Representations and Warranties: Statements of fact and assurances given by the parties

10. Governing Law and Jurisdiction: Specification of Nigerian law as governing law and jurisdiction for disputes

11. Notices: Procedures for giving formal notices under the agreement

12. Execution: Signature blocks and attestation requirements