Business transaction
A business transaction is any commercial dealing between parties, such as a sale of goods or services, a financing, a lease, a licence, or the purchase or sale of a business. In legal practice the phrase usually refers to significant deals, such as share or asset purchases, that are documented by written agreements and involve due diligence.
How BC law treats it
BC business transactions are governed mainly by contract law, together with statutes such as the BCBCA for corporate matters and the Sale of Goods Act for sales of goods. Sales to consumers are regulated by the Business Practices and Consumer Protection Act, SBC 2004, c 2.
What it means for your business
Putting the key terms of a deal in writing, and reviewing them with a lawyer before signing, reduces the risk of disputes later.
Risks and common mistakes
Signing a letter of intent without stating which terms are binding can create unintended obligations or disputes about whether a deal exists.
Fulcrum's contract lawyers can help with these issues.
General information about British Columbia and Canadian law, current to October 2026. It is not legal advice.
