AGREEMENT FOR ASSIGNMENT OF AN OFFICIAL MOTOR VEHICLE

THIS AGREEMENT made at ............. this ............ day of .........., 2021, between
……………………………. of ……………………. Lagos (hereinafter called "The
Company") which expression shall wherever the context so admits include its successors-In-
title and assigns) of the ONE PART
AND
…………………………. of ... .............. (Hereinafter called "The Staff"), which expression
shall where the context so admits includes his executors, administrators, representatives and
assigns of the OTHER PART.
All Parties may jointly be referred to as the Parties; and individually as a Party in this
Agreement.

WHEREAS
1. The Company is the owner of a motor vehicle, more particularly described in the
Schedule hereto, the staff is an employee of the company who has been assigned the said
vehicle as an official vehicle for the purposes of carrying out his official duties
effectively, to which the Company has agreed and assured the Staff that he/she shall have
and enjoy quiet possession of the said vehicle at the time the property is to pass and the
said vehicle is free from any charge or encumbrances in favour of any third party at the
time when the vehicle is to pass.

2. The Company has further assured the Staff that he/she shall have the right of ownership
to the said vehicle after a period of four (4) years following the conditions as stated in
this agreement.

3. The Staff has inspected the said vehicle and is satisfied about the same and considers it
fit for the purposes for which he/she requires the same.
NOW IT IS AGREED BETWEEN THE PARTIES AS FOLLOWS:
1. Company will assign and the Staff will take the vehicle more particularly described in the
Schedule hereto as his official car.
2. The Company has delivered the said vehicle to the Staff and has allowed the Staff to use
the said vehicle for official purposes only and ownership of the car shall be in the Company’s
name.
3. In consideration of the delivery of ownership of the said vehicle to the Staff, the latter must
fulfill as condition precedent, being a staff of the company for a minimum period of four (4)
years (the receipt whereof the Company hereby acknowledges) and have personally
maintained the car over the said period.
4. During the continuance of the use of the Vehicle as his official car, the Staff shall-
 (i) Not sell, assign, pledge, mortgage, underlet, lend or part with the possession of the
said vehicle and not allow the said vehicle to be used by anybody else or kept or
detained or run for the use of any other person.
(ii) Not take the said vehicle out of his primary state of assignment unless he has
obtained a permission in writing from the Company in that behalf and if the Company
grants permission subject to certain terms and conditions, the Staff shall abide by all
the terms and conditions imposed in respect of such permission.
(iii) Pay all licence duties, fees, registration and other charges taxes, payable in
respect of the said vehicle and keep the said vehicle in a good repair condition and
working order and will permit the Company and persons authorised by it to have
access to the said vehicle for the purpose of inspecting the condition thereof. In case
the Staff fails or neglects to cause the said vehicle to be repaired or kept in a proper
state of repair, the Company shall be entitled but shall not be bound to do, so, to seize
or cause the said vehicle to be seized and to get the same repaired and to keep the said
vehicle in its custody till the Staff pays the bills for repair of the said vehicle.
(iv) Keep the said vehicle insured and kept insured so long as the use shall continue in
the name of the Company and the Staff shall pay all the premiums payable to the
insurance company. On the staff becoming the owner of the said vehicle under the
terms of this agreement, the Company will transfer to the Staff the benefit of any
insurance policy then current relating to the said vehicle.
(v) Make good to the Company all damages to the said vehicle (fair wear and tear
excepted) and pay the Company the full value of the said vehicle in the event of its
total loss.
(vi) Indemnify the Company against claims by third parties arising by accident caused
by the said vehicle until the said vehicle is returned to the Company or assigned by
the Staff in terms of this agreement.
(vii) Not use or permit or suffer the said vehicle to be used in contravention of any
law for the time being in force.
4. If the Staff shall duly observe and performs all the conditions herein contained on his
part to be observed and performed and shall be an employee of the Company for a
minimum period of four years and maintaining the car appropriately under the provisions
of this Agreement, then the use of the Vehicle as an official vehicle shall come to an end
and the said vehicle shall become the property of the Staff. The Company will assign
and make over all its rights and interest in the same to the staff.

5. The hirer may at any time terminate the hiring by returning the said vehicle at his own
cost and risk to the owner at his place of address for the time being.

6. If the staff shall make default the condition precedent for transfer of the ownership of
the vehicle, or shall fail to observe or perform any of the terms and conditions of this
agreement, the Company may without prejudice to his claim for arrears of the vehicle
maintenance or damages (if any) for breach of this agreement forthwith terminate this
 agreement without notice and retake physical possession of the said vehicle itself or
through its agents or servants and the staff shall not object to the retaking of possession
of the said vehicle by the Company or its agents or servants and/or by written notice to
the staff determine this agreement and the assignment hereby constituted. On such
termination, the Staff shall immediately return the said vehicle to the Company at its
place of business for the time being.

7. No neglect, delay or indulgence on the part of the Company in enforcing any terms or
conditions of this agreement shall prejudice the rights of the Company hereunder.

8. The agreement is personal to the staff and the rights of the staff shall not be assignable or
chargeable by him in favour of third party.

9. In the event of the staff employment being determined by either resignation or

termination of the staff before a period of four (4) years, the Staff shall forthwith return
the said vehicle to the Company at the staff's expense. The determination of the
employment as aforesaid shall not affect or prejudice any claim the company may have
against the staff for fulfilment of the condition precedent or for damages for breach of
this agreement or its right to enforce such claim by action or otherwise.

10. The agreement shall be determined if the staff commits any act of bankruptcy or makes
any arrangement with his creditors or on presentation of a petition in the court for
adjudicating the staff as an insolvent or on the appointment of a receiver of the properties
of the staff or if an application is made by any creditor or other person against the staff
for the attachment of the said vehicle.

11. All disputes, differences and/or claims, arising out of this agreement shall be settled by
arbitration in accordance with the provisions of Nigerian Arbitration Act or any statutory
modification thereof. The award given by the arbitrator shall be final and binding on the
parties.

12. The parties hereby admit that this agreement has been fully explained to them and they
have understood the meaning of all the clauses of this agreement, and they have signed
this agreement with full understanding of the obligations herein.

IN WITNESS WHEREOF, the parties have hereunto set and subscribed their hand and seal
on the date and year above mentioned.
The COMMON SEAL of the within named COMPANY is hereunto affixed

……………………….. ………………………
DIRECTOR SECRETARY
SIGNED, SEALED and DELIVERED by the within named STAFF.
 …………………………
(NAME OF STAFF)
WITNESS;
Name:
Occupation:
Address:
Signature:
Date: