Document background
The Letter of Intent for Dealership serves as a crucial preliminary step in establishing dealer relationships across various industries in Canada. This document is typically used when a manufacturer or supplier intends to appoint a dealer but wishes to formalize the negotiations and due diligence process before committing to a full dealership agreement. It outlines key commercial terms, territorial rights, product lines, and performance expectations while maintaining a generally non-binding nature, except for specific provisions such as confidentiality and exclusivity. The document must comply with Canadian federal and provincial regulations, including competition laws, dealer protection acts, and industry-specific requirements. A Letter of Intent for Dealership helps parties align their expectations and provides a structured framework for negotiating the final agreement while protecting both parties' interests during the preliminary stages of their business relationship.
