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Exclusive Option Agreement Template for Nigeria

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Key Requirements PROMPT example:

Exclusive Option Agreement

"I need an Exclusive Option Agreement under Nigerian law for a 6-month option to purchase a commercial property in Lagos, with the option period starting March 1, 2025, and including provisions for due diligence and potential lease-back arrangements."

Document background
The Exclusive Option Agreement is a crucial commercial document used in Nigerian business transactions where parties seek to secure exclusive rights for future deals while maintaining flexibility. This agreement type is commonly employed in various scenarios including property acquisitions, corporate transactions, mineral rights, and other commercial opportunities where the option holder needs time to conduct due diligence, arrange financing, or obtain regulatory approvals. The document must comply with Nigerian legal requirements, including the Companies and Allied Matters Act 2020, Stamp Duties Act, and sector-specific regulations. It typically includes comprehensive provisions covering option grant, exercise period, consideration, conditions precedent, and completion mechanics. The exclusive nature of the option provides the holder with protected rights during the option period, preventing the grantor from engaging with other potential parties regarding the subject matter.
Suggested Sections

1. Parties: Identification and details of all parties to the agreement

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

3. Definitions and Interpretation: Definitions of key terms and interpretation rules

4. Grant of Option: Clear statement of the exclusive option rights being granted

5. Option Period: Duration of the option and any extension provisions

6. Option Fee and Payment Terms: Details of consideration paid for the option rights

7. Exercise of Option: Procedure and requirements for exercising the option

8. Conditions Precedent: Any conditions that must be satisfied before the option can be exercised

9. Warranties and Representations: Standard warranties regarding capacity, authority, and subject matter

10. Confidentiality: Obligations regarding confidential information

11. Assignment and Transfer: Restrictions on transfer of option rights

12. Termination: Circumstances under which the agreement can be terminated

13. Notices: Process for giving formal notices under the agreement

14. Governing Law and Jurisdiction: Specification of Nigerian law and jurisdiction

15. Boilerplate Provisions: Standard clauses including entire agreement, variation, and severability

Optional Sections

1. Due Diligence Rights: Used when the option holder needs rights to conduct due diligence before exercise

2. Security Provisions: Required when security is provided for option obligations

3. Regulatory Compliance: Needed when the transaction requires specific regulatory approvals

4. Tax Provisions: Include when there are specific tax implications or arrangements

5. Foreign Exchange Provisions: Required when the agreement involves foreign currency or cross-border payments

6. Competition Compliance: Include when the exclusive nature requires competition law considerations

7. Third Party Rights: Needed when third party rights might be affected by the option

8. Force Majeure: Optional inclusion for handling unforeseen circumstances affecting option exercise

Suggested Schedules

1. Schedule 1 - Description of Option Subject Matter: Detailed description of the asset, shares, or rights subject to the option

2. Schedule 2 - Form of Option Exercise Notice: Template notice for exercising the option

3. Schedule 3 - Completion Requirements: Detailed list of requirements for completion after option exercise

4. Schedule 4 - Form of Transfer Documents: Draft transfer documents to be executed upon exercise

5. Schedule 5 - Due Diligence Information: List of due diligence materials to be provided

6. Appendix A - Required Regulatory Approvals: List of necessary regulatory approvals and requirements

7. Appendix B - Payment Mechanics: Detailed payment procedures and bank account information

Authors

Alex Denne

Head of Growth (Open Source Law) @ ¶¶Òõ¶ÌÊÓÆµ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions



















































Clauses



































Relevant Industries

Real Estate

Oil and Gas

Mining

Manufacturing

Technology

Financial Services

Agriculture

Telecommunications

Retail and Consumer

Infrastructure

Energy

Healthcare

Relevant Teams

Legal

Commercial

Finance

Business Development

Compliance

Risk Management

Corporate Affairs

Operations

Strategy

Mergers & Acquisitions

Property Management

Contract Administration

Company Secretariat

Relevant Roles

Legal Counsel

Commercial Director

Chief Executive Officer

Chief Financial Officer

Business Development Manager

Corporate Affairs Manager

Compliance Officer

Risk Manager

Investment Manager

Property Manager

Contract Administrator

Company Secretary

Operations Director

Strategy Manager

Mergers & Acquisitions Director

Industries







Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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