A Canadian Sales Agreement is a contract for the sale of tangible personal property (goods) between a seller and a buyer, defining the items being sold, the purchase price, payment terms, delivery arrangements, warranty provisions, and the rights and remedies of each party. It is governed by provincial Sale of Goods Acts — Ontario's Sale of Goods Act (R.S.O. 1990, c. S.1), BC's Sale of Goods Act (R.S.B.C. 1996, c. 410), Alberta's Sale of Goods Act (R.S.A. 2000, c. S-2) — which codify common law rules and imply certain conditions and warranties into every sale of goods unless expressly modified by the parties.

Provincial Sale of Goods Acts imply several critical conditions into every transaction. The seller must have the right to sell the goods (implied condition of title). The goods must correspond to their description. If sold by description and the seller deals in goods of that kind, the goods must be of merchantable quality. If the buyer makes known a particular purpose, the goods must be fit for that purpose. These implied conditions can be modified or excluded in business-to-business transactions, but provincial consumer protection legislation (Ontario's Consumer Protection Act, 2002; BC's Business Practices and Consumer Protection Act) restricts the ability to exclude implied warranties in consumer sales.

GST/HST applies to most sales of goods in Canada. The federal GST rate is 5%, and provinces either participate in the Harmonized Sales Tax (HST) — 13% in Ontario, 15% in the Atlantic provinces — or levy a separate Provincial Sales Tax (PST). Alberta, Nunavut, Northwest Territories, and Yukon charge only the 5% GST. Saskatchewan and Manitoba charge PST in addition to GST. Quebec charges GST plus QST (9.975%). Sellers with annual taxable supplies exceeding CAD $30,000 must register for GST/HST under the Excise Tax Act.

For sales where the buyer takes possession before full payment, the seller should consider registering a security interest under the applicable provincial Personal Property Security Act (PPSA) to protect against the buyer's default or insolvency.

When a business is selling inventory, equipment, raw materials, or finished goods to another business and both parties need documented terms covering the quantity, specifications, pricing, delivery schedule, inspection period, and acceptance criteria for each shipment or order.

When a private individual is selling used goods of significant value — furniture, electronics, machinery, vehicles, boats, or collectibles — and both the seller and buyer want a written record of the item's condition, the agreed price, and any as-is disclaimers or limited warranty terms.

When a manufacturer or distributor enters into a supply arrangement with a retailer and the agreement must address minimum order quantities, volume pricing tiers, delivery schedules, quality standards, return procedures, and the allocation of GST/HST responsibilities between the parties.

When a seller is offering goods on credit or instalment payment terms and needs to document the payment schedule, reserve title until full payment, and potentially register a security interest under the provincial PPSA to protect the seller's interest in the goods until the buyer completes all payments.

When an online retailer ships goods to customers across multiple Canadian provinces and the agreement must address the applicable GST/HST or PST rate for each destination, shipping costs, risk of loss during transit, and the consumer's statutory right to return goods under provincial consumer protection legislation.

Without a written sales agreement, disputes over what was ordered, the condition of goods at delivery, whether the goods match their description, and the applicability of implied warranties are resolved under the default Sale of Goods Act provisions — which may not reflect either party's actual expectations.

Description of Goods — A detailed, specific description of the goods being sold: quantity, model numbers, serial numbers (if applicable), specifications, condition (new, used, refurbished, as-is), and any accessories or components included. Under the Sale of Goods Act, goods must correspond to their description, so precision prevents disputes over what was actually sold.

Purchase Price and Payment Terms — The total price in Canadian dollars, whether GST/HST and PST are included or additional, the payment method (e-transfer, cheque, wire, credit card), and the payment schedule (full payment on delivery, deposit with balance on delivery, or instalments). For instalment sales, specify whether the seller retains title until full payment.

GST/HST and Provincial Sales Tax — Identify the applicable tax rate based on the province of delivery, whether the seller is registered for GST/HST, and which party is responsible for remitting the tax. For inter-provincial sales, the destination province's tax rate generally applies.

Delivery and Risk of Loss — Where and when delivery occurs, who arranges and pays for shipping, and the point at which risk of loss or damage transfers from the seller to the buyer. Under the Sale of Goods Act, risk generally passes when property in the goods passes, unless the parties agree otherwise.

Inspection and Acceptance — The buyer's right to inspect the goods upon delivery and the timeframe for rejecting non-conforming goods (typically 5 to 15 business days). Once the buyer accepts the goods (through express acceptance, failure to reject within the specified period, or conduct inconsistent with the seller's ownership), the right to reject is generally lost.

Warranties — Whether the seller provides express warranties beyond the implied conditions of the Sale of Goods Act, or whether the goods are sold as-is with all implied warranties disclaimed to the extent permitted by law. Note that in consumer transactions, provincial consumer protection legislation may restrict warranty disclaimers.

Returns and Refunds — The conditions under which the buyer may return the goods and receive a refund: defective goods, goods not matching description, or buyer's remorse (if applicable). Specify the return window, the condition required for return, and whether a restocking fee applies.

Limitation of Liability — A cap on the seller's total liability (typically limited to the purchase price) and an exclusion of consequential, incidental, and indirect damages. These limitations are generally enforceable in business-to-business transactions but may be restricted in consumer sales.

Governing Law — The province whose Sale of Goods Act, consumer protection legislation, and courts govern the agreement, and the dispute resolution mechanism (small claims court for transactions under provincial thresholds, or specified mediation or arbitration procedures).