Document background
The Product Sales Agreement serves as a fundamental commercial contract for businesses engaged in the sale and purchase of products within Canada. This document is essential when establishing ongoing supply relationships or significant one-time product sales between commercial entities. It should be used when parties need to formalize their sales arrangement with clear terms regarding product specifications, pricing, delivery, warranties, and risk allocation. The agreement ensures compliance with Canadian federal and provincial regulations, including the Sale of Goods Act, Consumer Protection Act, and relevant tax legislation. It provides comprehensive protection for both sellers and buyers by clearly defining their rights, obligations, and remedies while incorporating necessary provisions for quality control, returns, liability limitations, and dispute resolution.
