Document background
The Sales With Buyback Agreement is a specialized contract used when a party wishes to sell assets while maintaining the right or obligation to repurchase them at a later date. This document is particularly relevant in Canadian business contexts where companies need temporary liquidity while planning to retain long-term ownership of assets, or in inventory management scenarios. It must comply with Canadian federal laws and provincial regulations, including the Sale of Goods Act, Personal Property Security Act, and relevant tax legislation. The agreement typically includes detailed provisions for the initial sale, asset maintenance, buyback terms, and risk allocation. It's commonly used in commercial transactions involving equipment, inventory, or other valuable assets where temporary transfer of ownership is desired for financial or operational purposes.
