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Payment Release Agreement for Nigeria

Payment Release Agreement Template for Nigeria

A Payment Release Agreement under Nigerian law is a formal legal document that facilitates the settlement of payment obligations between parties while providing a legal framework for the release of related claims or obligations. The agreement, governed by Nigerian contract law and financial regulations, details the payment terms, conditions, and release provisions. It incorporates compliance with Central Bank of Nigeria regulations and includes necessary provisions for both domestic and international payment transactions. The document serves as a binding agreement that provides clarity and finality to payment arrangements while offering legal protection to all parties involved.

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What is a Payment Release Agreement?

The Payment Release Agreement is a crucial document used in Nigerian business transactions to formalize the terms of payment settlement and associated releases. It is particularly valuable when parties need to document final payment arrangements, settle disputes, or provide clear evidence of payment completion and related releases of obligations. The agreement ensures compliance with Nigerian financial regulations, including Central Bank of Nigeria requirements, and can be used for both domestic and international transactions. It typically includes detailed payment terms, release provisions, and any conditions that must be met before payment is made. This document is essential for risk management and provides legal certainty in various commercial contexts, from simple payment settlements to complex corporate transactions.

What sections should be included in a Payment Release Agreement?

1. Parties: Identification of all parties to the agreement, including full legal names, addresses, and registration details for corporate entities

2. Background: Context of the payment obligation, including reference to any underlying agreements or circumstances giving rise to the payment

3. Definitions: Key terms used throughout the agreement, including payment-related terminology and referenced documents

4. Payment Amount and Currency: Clear statement of the total payment amount, currency, and any applicable exchange rate considerations

5. Payment Terms: Specific details of how and when the payment will be made, including payment method and timing

6. Release Provisions: Terms of the release, including scope of claims being released upon payment

7. Conditions Precedent: Any conditions that must be met before the payment is required to be made

8. Representations and Warranties: Standard statements of fact and assurances from each party

9. Confidentiality: Provisions regarding the confidentiality of the agreement and its terms

10. Governing Law and Jurisdiction: Specification of Nigerian law as governing law and jurisdiction for disputes

11. Execution: Signature blocks and execution requirements

What sections are optional to include in a Payment Release Agreement?

1. Multiple Payment Instalments: Include when payment is to be made in multiple tranches, specifying the schedule and conditions for each payment

2. Foreign Currency Provisions: Required when payments involve foreign currency, including exchange rate mechanisms and compliance with Nigerian foreign exchange regulations

3. Tax Provisions: Include when there are specific tax implications or withholding requirements

4. Security Arrangements: Include when payment is secured by specific assets or guarantees

5. Assignment: Include when either party needs the right to assign their rights or obligations

6. Force Majeure: Include when parties want protection against unforeseen circumstances affecting payment ability

7. Dispute Resolution: Include detailed arbitration or mediation procedures if preferred over court litigation

8. Anti-Money Laundering Compliance: Include specific compliance provisions when dealing with large sums or high-risk transactions

What schedules should be included in a Payment Release Agreement?

1. Payment Details Schedule: Detailed breakdown of payment amounts, bank account information, and payment instructions

2. Supporting Documents: List of relevant documents evidencing the underlying obligation or payment history

3. Release Confirmation Form: Template form to be signed upon receipt of payment confirming the release

4. Original Contract Reference: Summary or extract of the original contract or obligation giving rise to the payment

5. Compliance Certificates: Any required regulatory or compliance certificates related to the payment

6. Authority Documents: Corporate authorizations or power of attorney documents required for execution

Authors

Alex Denne

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

Jurisdiction

Nigeria

Document Type

Payment Agreement

Sector

Banking

Cost

Free to use
Relevant legal definitions































Clauses


























Relevant Industries

Banking & Financial Services

Construction & Real Estate

Oil & Gas

Manufacturing

Telecommunications

Professional Services

Mining

Agriculture

Retail & Commerce

Infrastructure Development

Technology

Healthcare

Relevant Teams

Legal

Finance

Treasury

Accounts Payable

Risk Management

Commercial Operations

Corporate Secretariat

Compliance

Credit Control

Settlement Operations

Relevant Roles

Chief Financial Officer

Finance Director

Legal Counsel

Corporate Treasurer

Accounts Payable Manager

Financial Controller

Commercial Director

Contract Manager

Risk Manager

Company Secretary

Managing Director

Settlement Officer

Credit Manager

Operations Director

Industries








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