Document background
The Credit Sales Agreement is a crucial document used in Canadian business transactions where goods are sold with payment terms extended over time. This agreement is essential when businesses want to offer customers the ability to purchase goods while paying for them in installments or on deferred payment terms. The document must comply with both federal legislation (such as the Interest Act and Criminal Code interest rate provisions) and provincial consumer protection and cost of credit disclosure requirements. It's particularly important for businesses engaged in high-value sales where immediate full payment isn't practical or desired. The agreement includes comprehensive details about the goods being sold, credit terms, payment schedules, security interests (if any), and the rights and obligations of all parties involved. This document is commonly used in both B2B and B2C contexts, though the specific requirements and protections may vary depending on whether the buyer is a business or consumer.
