Document background
The Cancellation Of Agreement To Sell is a crucial document used in Canadian business transactions when parties mutually agree to terminate an existing sales agreement. This document becomes necessary when circumstances change after the initial agreement, such as discovery of material issues, inability to fulfill conditions precedent, or mutual decision to abandon the transaction. It protects both parties by clearly documenting the termination terms, handling any exchanges of money or property, and providing mutual releases from future obligations. The document must comply with both federal and provincial legislation, including the relevant Sale of Goods Act, Consumer Protection Act, and common law principles in common law provinces or the Civil Code in Quebec. It's particularly important in high-value transactions or when there are complex terms to unwind.
