Document background
The Non-Reliance Letter Hold Harmless Letter is a critical risk management tool in Canadian business transactions, particularly relevant when sharing sensitive information or making representations during business dealings. This document type serves two main purposes: first, it establishes that the recipient is not relying on specific information or representations provided, and second, it includes provisions to hold the provider harmless from claims related to that information. The document is commonly used in due diligence processes, business sales, investment transactions, and advisory relationships where information sharing carries potential liability risks. Operating under Canadian federal and provincial law, including securities regulations where applicable, it provides important protection for information providers while ensuring recipients acknowledge their independent decision-making responsibility. The document's dual nature as both a non-reliance acknowledgment and a hold harmless agreement makes it particularly valuable in complex business transactions where clarity about information reliance and liability allocation is crucial.
