Document background
The Absolute Agreement of Sale is a crucial legal instrument in Canadian business transactions, designed for situations where parties intend to execute an unconditional and irrevocable transfer of property or assets. This document type is particularly valuable when certainty of execution is paramount and parties wish to avoid conditional elements that might complicate or delay the transaction. It finds application across various sectors, from real estate to business assets, and must comply with relevant Canadian federal laws and provincial regulations, including the Sale of Goods Act and Consumer Protection Act. The agreement typically includes detailed descriptions of the asset being transferred, precise payment terms, closing mechanisms, and representations and warranties from both parties. Its absolute nature distinguishes it from conditional sales agreements, making it particularly suitable for straightforward transactions where due diligence has been completed and both parties are ready to proceed with an unconditional commitment.
