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A HIRE PURCHASE AGREEEMENT

BETWEEN

OLAF-GINA LOGISTICS LIMITED

AND

...............................................
(Hirer)

AND

...............................................
(Guarantor)

IN RESPECT OF
………………………………………………………. WITH
REGISTRATION NUMBER ..............................., ENGINE
NUMBER; ............................, CHASSIS
NUMBER; ...............................................

OLAF GINA LOGISTICS LIMITED

Hire Purchase Agreement
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HIRE PURCHASE AGREEMENT MADE THIS ...................DAY OF..........................20….

BETWEEN

OLAF-GINA LOGISTICS LIMITED (herein referred to as “THE COMPANY” which

expression shall where the context admits include its successor-in-title and assigns) of the first
part.

AND

.................................................. of No. ........................................................................ (herein

referred to as the “THE HIRER” which expression shall where the context admits include its
successor-in-title and assigns) of the other part.
AND
…………………………………. of No. …………………………………… (the “Guarantor”)
which expression shall where the context so admits include his heirs, assigns, legal
representatives, and successors in title) of the third part.

WHEREAS
i. The subject matter of this hire purchase agreement is a ………………………………
with
REGISTRATION NUMBER ..................................., ENGINE
NUMBER ..........................,
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CHASSIS NUMBER; .................................

ii. The Company is in true, beneficial, and lawful possession of the said
……………………………...with REGISTRATION NUMBER .........................,
ENGINE NUMBER; ............................, CHASSIS
NUMBER; ...................................., COLOR…………………………………………

iii. The Company undertakes that the vehicle is free from any form of encumbrance or
adverse claim from a third party.

iv. The Hirer approached the Company for a hire purchase of the aforementioned vehicle
with an expectation of an obligation on his part from the date of commencement to
the date of final payment.

v. The Guarantor is willing and has agreed to be responsible for the conduct of the Hirer
with respect to this agreement and also to indemnify the Company should there be a
breach by the Hirer.

vi. The Company accepted the offer subject to some terms and conditions herein
appearing

vii. The parties acknowledge that the vehicle is being hired to the Hirer for the purpose of
business.

NOW THIS AGREEMENT WITNESSES AS FOLLOWS:

1. CONSIDERATION
The total hire purchase sum for the …………………………………. shall be the sum of
................................................................ (₦.......................).

2. DURATION
The life span of this agreement shall be …………… within which period the Hirer must
fully pay the purchase sum.

3. TERMS OF PAYMENTS.

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i. That the instalment payment is weekly at the rate of

................................................................ (₦.......................). and such payment
must be made every Monday.

ii. The Hirer may at any time during the term or on the expiry date elect to purchase
the vehicle by paying the Company the residual and the balance of the total
amount with interest due and payable to the Company under this agreement
whereupon the hiring will end. There shall be no interest waiver.

4. OWNERSHIP
i. The vehicle particulars shall be in the Company’s name, bearing total cost
includes: the cost of purchase, registration, and other incidental cost to make the
vehicle business worthy.
ii. That Ownership in the vehicle shall remain in the Company and can only be
transferred to the Hirer on discharge of the hire purchase sum.
iii. That the Company shall recover the vehicle from the Hirer in default of
nonpayment for a consecutive period of three (3) weeks except where it can be
established that default was as a result of force majeure.
iv. The Hirer shall on completion of the prompt payment of the total sum
of ................................................................ (₦.......................) as at when due
become the Company of the said hired vehicle and shall forfeit the transfer of
Ownership of the hired vehicle IF HE FAILS TO promptly complete the payment
of the amount on or before the expiration of the …………. months period, which
commences …… of …………….. 20…...

5. SUB HIRE AND ASSIGNMENT.

i. The Hirer shall not assign or otherwise dispose his rights under this agreement to
any other person.
ii. The Hirer shall not dispose, delegate, redelegate, sub-Hirer, sell, borrow, lend, gift
any other person the vehicle to use during the subsistence of this agreement.
iii. The Hirer shall not (during the hiring period) hold himself out as the Company of
the hired vehicle nor sell, assign, transfer, pledge, mortgage, let, underlet or
otherwise deal with the hired vehicle or any interest in it contrary to this
agreement or create any lien upon the hired vehicle.

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6. REPAIRS AND MAINTENANCE

i. During the continuance of the Hiring, the Hirer shall keep the hired vehicle in
good repair, maintenance, and condition.
ii. The Hirer can can make written application to the Company for major repairs.
The cost of such repairs will be capitalised as loan to the Hirer with its separate
terms and condition agreed by both parties.

8 THE HIRER COVENANT WITH THE COMPANY AS FOLLOWS:

i. Keep the vehicle in the Hirers possession and at the location specified and not
change it without Company’s acknowledgement, to wit: Lagos or any other
Location as may be agreed by the Company
ii. Not to sell, assign, let, mortgage, charge or otherwise dispose of or encumber the
vehicle or do anything which conflicts with the Company’s interest in the vehicle
or jeopardizes the Company’s ability to recover possession of the vehicle as and
when this proves necessary.
iii. Obtain all necessary licenses or permits for the use of the vehicle and punctually
pay all duties, fees, and registration charges payable in respect of the vehicle.

iv. To always put in good condition the hired vehicle and makes good to the
Company all damages, wear and tear to the said vehicle and pay the Company the
full value of the said vehicle in the event of its total loss.
v. The Company’s title to the vehicle as at the date of this agreement is not and will
not be affected in any way by the terms of this agreement notwithstanding the
Hirers taking possession and/or control of the vehicle, the Hirers management
and/or use of the vehicle.
vi. To indemnify the Company against claims by third parties arising from accident
or regulatory or traffic arrest caused by the Hirer.
vii. To produce the vehicle for inspection to ascertain its existence and physical
condition and to also allow the Company or the Company’s authorized
representative at all reasonable times to inspect and test it.

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viii. Not affix the vehicle without the Company’s prior written consent to any land or
building.
ix. Allow the Company at the Company’s discretion to identify the vehicle as the
Company’s property, by any means the Company deems fit, and must not remove
obscure or deface that identification such as repainting, branding or remolding.
x. Not to use or permit or suffer the vehicle to be used in contravention of law for
the time being in force.
xi. To assume or acquire any liability for:
a. Placing the hired vehicle in order after effecting hire.
b. For maintenance of the hired vehicle.
c. Loss or damage to the hired vehicle.

And the Hirer will indemnify the Company against and hold the Company harmless from
all liabilities that the Company may incur in connection with any action by the Hirer in
the name of or as agent of the Company.

9. THE GUARANTOR HEREBY COVENANTS AS FOLLOWS:

a. To be held responsible for the acts of the Hirer throughout the duration of the hiring
period.
b. To fully indemnify the Company against all losses, costs and damages done to the hired
vehicle as a result of negligence, inadvertency and/or misrepresentation by the Hirer.

10. THE COMPANY COVENANT WITH THE HIRER AS FOLLOWS

PROVIDED ALWAYS that the Hirer duly and punctually pays the total amount and
observing and performing its obligations as set out in this agreement, the Company
hereby covenants as follows:

i. that the Hirer will peaceably possess and enjoy the vehicle from the hire date to and
including the expiry date without interruption or disturbance from the Company or any
other person lawfully claiming by or from or under the Company, subject always to the
rights of the Company.

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ii. Provided the Hirer has performed and complied with all the Hirers’ obligation under this
agreement and paid all sums due or owing to the Company, the Company shall do all act
necessary to transfer title in vehicle to the Hirer at the Hirer’s expense. Until such time, the
Company retains full title in the vehicle.

11. DEPOSIT AND OTHER PAYMENTS

i. The Hirer shall pay an upfront security deposit equivalent to 10% of the total cost under
this hiring agreement.
ii. The Company will deduct the weekly instalment from the security deposit at the end of
any week which the Hirer default of any weekly instalment.
iii. The Hirer shall make payment to top the security deposit within 2 WEEKS
(14days) counting a day after the deduction by the Company in clause 11(ii) is
made.
iv. All money payable by the Hirer under this agreement will be paid to the bank
account nominated by the Company or such other account or place as the
Company may direct.
v. On the expiry date, the Hirer will pay the Company the residual payment.
vi. The Hirers obligation to pay the amount and all other money payable under this
agreement and the Company’s rights in and to all such payments are absolute and
unconditional and are not affected by:
a. Any eventual defect in the vehicle.
b. The condition, operation or fitness for use of the vehicle afterwards.

And it is the intention of the parties that the total amount payable will continue to be
payable as provided in this agreement unless the agreement is terminated.

12. CUSTODY, USE AND MAINTENANCE OF VEHICLE

1. The Hirer acknowledges that the risk relating to the vehicle pass to the Hirer upon
delivery and that the Hirer accepts total responsibility for the loss of, damage to or
destruction of the goods.
2. The Hirer will keep in custody, use and maintain the vehicle with all due vehicle and
diligence and in compliance with the instruction and recommendations of the supplier
and/or manufacturer as to storage use and maintenance.

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3. The Hirer will at his own expense keep and maintain the vehicle in proper working order
and condition and in good and substantial repair.
4. Subject to this agreement, the Hirer may, without the consent of the Company, at its own
expense make such addition, replacement or alteration to the vehicle being in the nature
of repair or maintenance which in its reasonable opinion is necessary to comply with its
obligations. Provided that any such addition, replacement or alteration is of a not less
than the quality of the goods or any part thereof that is being altered or replaced.
5. Notwithstanding, the Hirer may not without the prior consent of the Company make any
addition, replacement or alteration of a major nature to the vehicle which may lead to a
reduction of the value of the vehicle. Any accessories, parts, equipment or devices which
are installed upon or in the vehicle will be deemed to be part of the vehicle and will
become the property of the Company and be subject to the terms of this agreement.

13. TERMINATION

1. Upon breach of any provision of this agreement by the Company shall without prejudice
to his accrued right to terminate this agreement and without notice be entitled to retrieve
the hired vehicle from the Hirer immediately and sell off the vehicle to recover its full cost
from the sales value
i. This agreement will automatically be terminated confirmation by the Company of
full payment of maintenance loan, hire purchase principal amount and interest due
under a letter of release.
ii. If the hirer uses the vehicle for acts or aid or conduct business(s) deemed illegal
and or criminal or under the law

iii. If the Hirer is in breach of or evinces an intention to breach any term, condition or
covenant of this agreement or any other agreement with the Company and fails to
remedy it within seven days of receiving notice from the Company, the Hirer will
be deemed to have repudiated this agreement or if;
a. The Company is of the opinion that the Hirer cannot pay the Hirers debt or is
insolvent.
b. The Company believes that the vehicle or the Company’s title to or interest in it is
in jeopardy.

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c. The Hirer defaults for at least three consecutive times in the payment of weekly
due.

On termination of this agreement, the Hirer must as required by the Company either deliver up
the vehicle to such place as the Company may direct or hold the vehicle for collection by the
Company.

14. PAYMENT ON TERMINATION

On termination of this agreement, the Hirer will pay to the Company; all other monies
defaulted/accrued to the date of termination.

The Company shall not be liable for payment of any sum to the Hirer upon the termination of
this agreement. Accordingly, money paid by the Hirer is not refundable and the Company shall
be entitled to immediate possession of the vehicle upon breach by the Hirer.

15. SEVERABILITY

Should any portion of this agreement be held invalid, unenforceable, or void, such holding will
not have the effect of invalidating or voiding the reminder of this agreement not so declared or
any part thereof, the parties hereby agreeing that the portion so held to be invalid, unenforceable
or void shall, if possible, be deemed, amended or reduced in scope, otherwise to be stricken
there from, only to the extent required for purposes of validity and enforcement in the
jurisdiction.

16. AMENDMENT

This agreement can only be modified by a written document executed in the same manner with
which this agreement was executed. And such written document must expressly state that it is
intended for modification of this agreement.

18. ASSIGNMENT

No party shall transfer all or any part of his interest in the business without the other party’s prior
written consent. Provided that consent shall not be unreasonably withheld, any attempted

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assignment without prior written consent shall be deemed void and shall constitute a
fundamental breach of this agreement. However, it shall be sufficient for the Company to give a
notice of transfer of the vehicle to any third party in which case the Hirer’s rights and obligations
shall remain same as under this agreement.

19. FORCE MAJEURE

A party shall not be considered in breach of or in default under this Agreement on account of,
and shall not be liable to the other party for, any delay or failure to perform his obligations
hereunder by reason of fire, earthquake, flood, explosion, strike, riot, war, terrorism, or similar
event beyond that party’s reasonable control; provided, however, that if a Force Majeure event
occurs, the affected party shall, as soon as practicable:

a. Notify the other party of the Force Majeure event and the impact on performance under
this Agreement; and
b. Use reasonable efforts to resolve any issues resulting from the Force Majeure event and
perform his obligation hereunder.
c. Both parties shall with immediate effect come to terms and make possible arrangement to
foster the obligations under this agreement.

20. NO IMPLIED WAIVER

The failure of either party to insist on strict performance of any covenants or obligation under
this agreement, regardless of the length of time for which such failure continues, shall not be
deemed to be a waiver of such party’s right to demand strict compliance in the future. No
consent or waiver, express or implied, to or of any breach or default in performance of an
obligation under this Agreement shall constitute a consent or waiver to or of any other breach or
default in the performance of the same or any other obligation.

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21. NOTICE

Save for when notice is impossible, any notice or other communication provided for herein shall
be in writing and shall be given in person, by courier, or by electronic communication to the
other party; such notice not being lesser than 3 (three) days.

22. SUPREMACY OF THE AGREEMENT

This agreement, together with all its exhibits hereto, constitute the final, complete, and
exclusive statement of the agreement of the Parties with respect to the subject matter hereof, and
supersedes any and all other prior and contemporaneous agreements and understandings, both
written and oral, between the Parties.

IN WITNESS of which the parties herein have executed this agreement in the manner below the
day and year first above written.

SIGNED, SEALED AND DELIVERED

By the within named “Company” OLAF GINA LOGISTICS LIMITED

………………………………………………………
Name:

In the presence of:

Name:………………………………………………..

Address:…………………………………………….

Occupation:………………………………………..

Signature:…………………………………………..

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SIGNED SIGNED
By the within named Hirer By the within named Guarantor

……………………………… …………………………………
Name: Name:
Tel: Tel:

In the presence of:

Name:………………………………………………..

Address:…………………………………………….

Occupation:………………………………………..

Signature:………………………………………

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