Document background
The Contingency Sales Agreement is a crucial document in Canadian business transactions where the completion of a sale depends on specific conditions being satisfied. This type of agreement is commonly used when parties need to establish clear parameters for a sale that requires certain prerequisites, such as obtaining financing, completing due diligence, receiving regulatory approvals, or meeting specific performance criteria. The document serves as a legally binding framework that protects both parties' interests by clearly defining the conditions precedent, timelines, and consequences of meeting or failing to meet these conditions. It is particularly valuable in complex commercial transactions where certainty and risk management are essential, and it must comply with both federal and provincial Canadian legal requirements, including the Sale of Goods Act, Consumer Protection Act, and industry-specific regulations.
