Equipment Lease Agreement Template for Nigeria

The Equipment Lease Agreement serves as a crucial legal instrument in Nigeria's commercial landscape, enabling businesses and individuals to access necessary equipment without substantial capital investment. This document type is essential when one party wishes to use equipment owned by another party for a specified period in exchange for regular payments. The agreement must comply with Nigerian legislation, particularly the Equipment Leasing Act 2015 and relevant commercial laws. It typically includes detailed specifications of the equipment, financial terms, maintenance obligations, insurance requirements, and conditions for both parties. The document is particularly relevant in Nigeria's growing industrial and commercial sectors, where capital equipment costs can be prohibitive for outright purchase.

1. Parties: Identification of lessor and lessee with full legal names and addresses

2. Background: Context of the lease arrangement and brief description of the parties' intentions

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

4. Equipment Description: General description of the equipment being leased (detailed specifications in Schedule)

5. Lease Term: Duration of the lease, commencement date, and any renewal options

6. Rent and Payment Terms: Rental amount, payment schedule, method of payment, and late payment consequences

7. Delivery and Acceptance: Terms for equipment delivery, inspection, and acceptance procedures

8. Use and Maintenance: Permitted use of equipment, maintenance responsibilities, and operating conditions

9. Insurance and Risk: Insurance requirements and allocation of risk for damage or loss

10. Title and Ownership: Confirmation of lessor's ownership and lessee's rights to possession

11. Warranties and Representations: Warranties regarding equipment condition and parties' authority to enter agreement

12. Default and Remedies: Events of default and available remedies for both parties

13. Termination: Conditions for early termination and consequences

14. Return of Equipment: Conditions and procedures for returning equipment at lease end

15. Governing Law and Jurisdiction: Nigerian law as governing law and jurisdiction for disputes

16. Notices: Process for formal communications between parties

17. Entire Agreement: Standard boilerplate confirming agreement encompasses all terms