Document background
The Loan for Use Agreement, also known as Commodatum in Nigerian legal practice, is essential for arrangements where one party wishes to grant another the temporary use of property without monetary compensation. This document is commonly used in both business and personal contexts across Nigeria, particularly when valuable equipment, vehicles, or other assets need to be temporarily transferred while maintaining clear ownership rights. It helps prevent disputes by clearly defining the terms of use, maintenance responsibilities, and return conditions. The agreement must comply with Nigerian contract law principles, including proper execution requirements and consideration of local business practices. This document type is particularly relevant in Nigeria's growing business environment, where resource sharing and temporary asset utilization are becoming increasingly common practices for cost optimization and operational efficiency.
