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Ignore Bulk Sales Act requirements at your peril

Thursday, September 01, 2016 @ 8:00 PM | By Derek Levinsky

Countless solicitors have been faced with the following question: should a buyer of assets waive a seller’s compliance with the Bulk Sales Act?

By way of a brief summary, Ontario’s Bulk Sales Act (BSA) requires a buyer to a transaction, in which all or substantially all of a seller’s assets are sold out of the ordinary course of business, to receive from the seller a statement of its creditors (s. 4 of the BSA). Within five days of a transaction’s closing date, the buyer is then...