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Wholesale Assignment Contract for Canada

Wholesale Assignment Contract Template for Canada

A comprehensive legal document governed by Canadian law that facilitates the transfer of wholesale business rights, obligations, and interests from one party (the Assignor) to another (the Assignee). This agreement covers the assignment of customer contracts, supplier relationships, inventory rights, and related business assets specific to wholesale operations. It includes detailed provisions for the transfer process, warranties, representations, and compliance with Canadian federal and provincial regulations, particularly focusing on commercial law, competition requirements, and industry-specific regulations.

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What is a Wholesale Assignment Contract?

The Wholesale Assignment Contract is a specialized legal instrument used in Canadian business transactions when a party wishes to transfer its wholesale business operations, rights, and obligations to another entity. This document becomes necessary during business acquisitions, restructuring, or strategic exits from wholesale operations. The contract ensures compliance with Canadian federal and provincial laws, including the Sale of Goods Act, Competition Act, and relevant provincial regulations. It typically includes comprehensive details about the assigned business assets, customer and supplier contracts, inventory rights, and operational obligations. The document provides legal protection for both parties by clearly defining the scope of assignment, warranties, and representations, while addressing specific requirements of wholesale trade operations in Canada.

What sections should be included in a Wholesale Assignment Contract?

1. Parties: Identification of the Assignor and Assignee, including full legal names and registered addresses

2. Background: Context of the wholesale business, existing arrangements, and purpose of the assignment

3. Definitions: Definitions of key terms used throughout the agreement

4. Assignment: Core provision detailing what is being assigned, including all relevant rights, title, and interest

5. Consideration: Details of the payment or other consideration for the assignment

6. Effective Date: Specification of when the assignment takes effect

7. Assignor's Representations and Warranties: Warranties regarding ownership, right to assign, and status of assigned rights/assets

8. Assignee's Representations and Warranties: Warranties regarding capacity to accept assignment and perform obligations

9. Conditions Precedent: Any conditions that must be satisfied before the assignment becomes effective

10. Transition Arrangements: Process for transitioning the wholesale business or rights

11. Confidentiality: Obligations regarding confidential information

12. Governing Law: Specification of Canadian law as governing law and jurisdiction

13. General Provisions: Standard boilerplate clauses including notices, amendments, and severability

What sections are optional to include in a Wholesale Assignment Contract?

1. Third Party Consents: Required when assignment needs approval from other parties

2. Intellectual Property: Include when IP rights are part of the assigned business

3. Employee Matters: Necessary when employees are being transferred as part of the wholesale business

4. Tax Matters: Include detailed tax provisions when significant tax implications exist

5. Non-Competition: Include restrictions on Assignor's future business activities if required

6. Insurance: Include when specific insurance requirements need to be maintained

7. Dispute Resolution: Alternative dispute resolution procedures if preferred over court proceedings

8. Further Assurance: Additional actions required to perfect the assignment

What schedules should be included in a Wholesale Assignment Contract?

1. Schedule A - Assigned Assets: Detailed list of all assets, contracts, and rights being assigned

2. Schedule B - Excluded Assets: List of assets explicitly excluded from the assignment

3. Schedule C - Customer Contracts: List of customer contracts being assigned

4. Schedule D - Supplier Contracts: List of supplier contracts being assigned

5. Schedule E - Intellectual Property: Details of any IP rights included in the assignment

6. Schedule F - Transfer Documents: Forms of transfer documents required to effect the assignment

7. Schedule G - Transition Services: Details of any transition services to be provided

8. Appendix 1 - Required Consents: List of third-party consents required for the assignment

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Canada

Publisher

Genie AI

Cost

Free to use
Relevant legal definitions










Clauses






































Relevant Industries

Retail

Manufacturing

Distribution

Consumer Goods

Industrial Products

Food and Beverage

Pharmaceuticals

Electronics

Automotive

Construction Materials

Textiles

Agricultural Products

Chemical Products

Medical Supplies

Relevant Teams

Legal

Operations

Commercial

Supply Chain

Finance

Compliance

Sales

Procurement

Business Development

Risk Management

Relevant Roles

Commercial Director

Business Development Manager

Chief Operating Officer

Supply Chain Manager

Procurement Director

Legal Counsel

Contract Manager

Distribution Manager

Sales Director

Chief Financial Officer

Operations Manager

Compliance Officer

Business Transfer Specialist

Wholesale Operations Manager

Industries








Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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