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A Call option agreement gives you the right to buy specific assets, like company shares or property, at a preset price within an agreed timeframe in Nigeria. It's essentially a contract that locks in your future purchase price today, even if the asset's market value increases later.

Under Nigerian contract law, these agreements protect buyers while giving them flexibility to decide if they want to complete the purchase. They're commonly used in Nigerian real estate deals, corporate acquisitions, and investment transactions where buyers need time to arrange funding or conduct due diligence before committing fully.

Use a Call option agreement when you've identified a valuable asset in Nigeria but need time before making the full purchase commitment. This works perfectly for real estate developers who spot prime land but require months to secure funding, or investors eyeing company shares while completing due diligence.

The agreement becomes especially valuable during market uncertainty or when dealing with high-value Nigerian assets. It protects your interests by locking in the purchase price while giving you breathing room to arrange financing, obtain regulatory approvals, or assess market conditions before exercising your buying rights.

• Basic Share Call Option: Most common in Nigerian corporate deals, giving the right to buy company shares at a fixed price within a specific period
• Real Estate Call Option: Used for property transactions, allowing buyers to secure future purchase rights while conducting title searches and arranging financing
• Conditional Call Option: Includes specific performance requirements or milestones that must be met before the option can be exercised
• American-Style Option: Exercisable any time before expiration, popular in Nigerian business acquisitions
• European-Style Option: Only exercisable on the expiration date, typically used in structured investment deals

• Option Holders: Investors, developers, or businesses seeking the right to purchase assets at predetermined prices in Nigeria's market
• Option Writers: Asset owners or companies granting the purchase rights, often receiving a premium payment for the option
• Corporate Lawyers: Draft and review Call option agreements to ensure compliance with Nigerian securities laws and regulations
• Financial Advisors: Help structure option terms and evaluate financial implications for both parties
• Company Directors: Approve and execute agreements when corporate shares are involved, ensuring alignment with shareholder interests

• Asset Details: Document precise descriptions of shares, property, or assets covered by the option, including current market value
• Strike Price: Determine and clearly state the agreed purchase price for the asset when the option is exercised
• Timeline Parameters: Set specific exercise dates and expiration terms that comply with Nigerian contract law
• Party Information: Gather complete details of option holder and writer, including corporate registration numbers if applicable
• Payment Terms: Specify option premium amount, payment schedule, and method of payment in Nigerian currency
• Exercise Conditions: List any prerequisites or conditions that must be met before the option can be exercised

• Option Terms: Clear statement of the asset, strike price, and exercise period under Nigerian contract law
• Consideration Clause: Details of the option premium payment and purchase price calculation method
• Exercise Mechanism: Specific process for exercising the option, including notice requirements
• Representations & Warranties: Both parties' legal capacity and authority to enter the agreement
• Governing Law: Explicit choice of Nigerian law and jurisdiction for dispute resolution
• Transfer Rights: Rules regarding assignment or transfer of the option rights
• Termination Provisions: Conditions for early termination and consequences

A Call option agreement differs significantly from a Stock Option Agreement in several key aspects under Nigerian law, though both involve rights to acquire assets. Understanding these differences helps you choose the right tool for your situation.

• Scope of Application: Call options can cover any asset type (property, shares, commodities), while Stock Option Agreements specifically deal with company shares, often as employee incentives
• Purpose and Usage: Call options typically serve investment or acquisition strategies, while Stock Options usually form part of employee compensation packages
• Exercise Flexibility: Call options allow more flexible exercise terms and conditions, whereas Stock Options often follow predetermined vesting schedules
• Regulatory Framework: Call options face fewer regulatory restrictions in Nigeria, while Stock Options must comply with specific corporate and securities regulations