The Supplier Authorization Letter is a crucial business document used in Canadian commercial relationships to establish and formalize supplier-distributor arrangements. This document becomes necessary when a company needs to officially authorize another entity to act as its supplier, distributor, or reseller within specific Canadian territories. The letter typically includes essential elements such as the scope of authorization, product/service specifications, territorial rights, duration of authorization, and any specific terms or conditions governing the relationship. Under Canadian law, this document helps ensure compliance with federal and provincial regulations governing business relationships, including the Competition Act and relevant provincial trade legislation. The Supplier Authorization Letter serves as evidence of the authorized relationship for various stakeholders, including customers, regulatory authorities, and other business partners.

1. Letterhead and Date: Company letterhead with full legal name, address, and date of issuance

2. Recipient Details: Full legal name and address of the party being authorized as supplier

3. Subject Line: Clear indication that this is a Supplier Authorization Letter

4. Authorization Statement: Clear and unambiguous statement of authorization, including the scope of products or services covered

5. Duration: Specific period for which the authorization is valid

6. Territory: Geographic area where the authorization applies

7. Terms and Conditions: Key terms of the authorization including any specific requirements or restrictions

8. Authorized Signatory: Name, title, and signature of the authorizing company's representative