Document background
The Acquisition Purchase Agreement is a fundamental transaction document used in Canadian mergers and acquisitions to formalize the purchase and sale of a business. It is essential for both share purchases and asset acquisitions, requiring careful consideration of federal and provincial laws, including the Competition Act, Investment Canada Act, and provincial securities regulations. This agreement is typically used when a company or individual is acquiring another business entity, whether in whole or in part, and needs to document all aspects of the transaction including purchase price, payment terms, representations and warranties, conditions to closing, and post-closing obligations. The document must comply with Canadian legal requirements and often includes jurisdiction-specific provisions for tax treatment, employment matters, and regulatory approvals. It serves as the cornerstone document in M&A transactions, protecting both buyers and sellers by clearly defining their rights, obligations, and the terms of the deal.
