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Term Sheet Partnership Agreement for Nigeria

Term Sheet Partnership Agreement Template for Nigeria

A preliminary agreement document governed by Nigerian law that outlines the key terms and conditions for a proposed partnership between two or more parties. This document serves as a foundation for the full partnership agreement, capturing essential elements such as capital contributions, profit sharing, management structure, and key commercial terms. While not all provisions may be legally binding, it creates a framework for negotiation and subsequent documentation, ensuring alignment with Nigerian partnership laws and regulations, including the Partnership Act and Companies and Allied Matters Act (CAMA).

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Term Sheet Partnership Agreement

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What is a Term Sheet Partnership Agreement?

The Term Sheet Partnership Agreement is a crucial preliminary document used in Nigerian business transactions to establish the fundamental terms of a partnership arrangement before proceeding with detailed legal documentation. It is particularly relevant in today's dynamic Nigerian business environment where partnerships between local and international entities are increasingly common. This document typically precedes the full partnership agreement and outlines key commercial terms, governance structures, and partner obligations while ensuring compliance with Nigerian legal requirements. It serves as a roadmap for legal counsel to draft comprehensive partnership agreements and helps parties align their expectations early in the partnership formation process. The document is especially useful in complex negotiations where parties need to agree on principal terms before investing in detailed legal documentation.

What sections should be included in a Term Sheet Partnership Agreement?

1. Parties: Identification of all parties to the partnership agreement, including full legal names and addresses

2. Background: Context of the partnership arrangement and brief description of each party's business

3. Definitions: Key terms used throughout the term sheet and their meanings

4. Partnership Structure: Legal form of partnership and basic organizational structure

5. Business Purpose: Defined scope and objectives of the partnership

6. Capital Contributions: Initial and subsequent capital contributions from each partner

7. Profit and Loss Sharing: Distribution of profits and allocation of losses between partners

8. Management and Control: Decision-making structure and management responsibilities

9. Term and Termination: Duration of partnership and conditions for termination

10. Confidentiality: Protection of confidential information exchanged during the partnership

11. Binding Effect: Clarity on which provisions are legally binding and which are subject to definitive agreements

What sections are optional to include in a Term Sheet Partnership Agreement?

1. Intellectual Property Rights: Used when the partnership involves development or sharing of intellectual property

2. Non-Competition: Include when partners need to agree not to compete with the partnership

3. Foreign Investment Provisions: Required when partnership involves foreign partners or cross-border elements

4. Regulatory Compliance: Include when partnership operates in regulated industries

5. Exit Mechanisms: Used when partners want to define specific exit routes upfront

6. Dispute Resolution: Include when parties want to specify alternative dispute resolution methods

7. Future Funding Commitments: Used when additional capital contributions may be required

What schedules should be included in a Term Sheet Partnership Agreement?

1. Schedule A - Initial Capital Contributions: Detailed breakdown of each partner's initial capital contributions

2. Schedule B - Business Plan Overview: High-level summary of partnership's business objectives and strategy

3. Schedule C - Management Structure: Detailed organizational chart and management responsibilities

4. Schedule D - Key Performance Indicators: Metrics for measuring partnership success

5. Appendix 1 - Partner Information: Detailed information about each partner including registration documents

6. Appendix 2 - Asset Schedule: List of assets to be contributed to the partnership

7. Appendix 3 - Required Regulatory Approvals: List of necessary regulatory approvals and licenses

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

Cost

Free to use
Relevant legal definitions


































Clauses






























Relevant Industries

Technology

Oil and Gas

Agriculture

Manufacturing

Financial Services

Real Estate

Telecommunications

Healthcare

Education

Retail

Mining

Construction

Renewable Energy

Professional Services

Entertainment

Logistics

Relevant Teams

Legal

Corporate Development

Business Development

Finance

Strategy

Operations

Compliance

Risk Management

Investment

Corporate Secretariat

Executive Leadership

Mergers and Acquisitions

Relevant Roles

Chief Executive Officer

Managing Director

Business Development Manager

Legal Counsel

Corporate Lawyer

Investment Manager

Partnership Manager

Chief Financial Officer

Strategy Director

Operations Director

Commercial Director

Compliance Officer

Risk Manager

Company Secretary

Board Member

General Counsel

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, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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