Facts on Canada contract law and negotiations

What do you need to know about Canadian business culture?

Canadians are polite, easy going and informal. They like to engage in discussions on various topics as they are confident and aware. French and English are the two main languages used. If in Quebec, make sure you know French or keep a translator by your side. The Canadian communication style is pragmatic and based on common sense. Refrain from comparing Canada with the US during your interactions. Canadians are a highly individualistic lot, who like to keep their personal information to themselves.

Most of Canadian companies are focused on leaner and flatter structure of business rather than taking the conventional hierarchical approach. In Canada, it’s far better to do initial research before any embarking on new ventures. Canadians as managers, are not dictatorial, instead they settle issues producing definite result in a decisive manner. When meeting them, make sure that you are more formal than when you are dealing with Americans. While punctuality matters the most to Canadians, meetings usually start with small talk first.

What are negotiation tactics in Canada?

Due to Canada being a multi-cultural land, most Canadians are adept at conducting business with other nationalities. They are open-minded and have a genuine interest in the world. Toronto and Ottawa are the best business destinations.

Negotiation Process

  • Be punctual and direct
  • Be aware – Canadians appreciate you more when you are clear about all aspects of your business proposal such as budget, services, knowledge sharing or third party partnerships.
  • Be open  and share information to build trust
  • Approach the negotiation as a relationship building exercise – Canadians prefer a win-win solution
  • Be positive
  • Avoid hard selling, hype or aggression
  • Wrap it up, don’t stall
  • Introduce written terms and conditions

How much is the contract worth in Canada?

No agreement is final and binding unless it involves a contract signed by both parties. Canadian contracts are lengthy and legalized in nature. You are also permitted to include legal counsel during your interactions with a Canadian client. Ensure you are satisfied with the terms and conditions. Changes after signing the contract are not appreciated.

What are pricing policy, pressure and restraints in Canada?

Canadians are open to various pricing strategies such as multiple unit pricing, volume discounting or differential pricing. Prior to deciding which strategy you wish to adopt, it’s important to analyse:

  • Industry trends in Canada and the current cost of material, labour, etc.
  • Business objectives such as introducing a new product, revamping a new one, etc.
  • Target audience and Impact on Canadian Customer Base
  • Distribution channels – mode and frequency of delivery
  • Competitive comparison – what your competitors are charging

What is Canadian legal system?

Canada’s legal system follows the adversarial model. Canada comprises ten provinces and three territories. Canada has inherited the common law practice from England. However, the province of Québec which has a French colonial background. It therefore follows a civil law jurisdiction. Common law, is still relevant to Québecin public law matters.

What is the arbitration and litigation in Canada?

In Canada Commercial arbitration is used quite widely. It is an important method to resolve international commercial disputes. Local courts support domestic as well as international arbitration matters. The courts highly recognize international arbitral tribunals. As per the interpretations of the New York Convention and the UNCITRAL Model Law on International Commercial Arbitration 1985 (UNCITRAL Model Law), Canadian courts recognize and enforce Foreign arbitral awards.

Arbitration is increasingly becoming an accepted alternative to court litigation to settle disputes. Arbitrations in Canada are governed by provincial legislation.

In Canada, each province and territory has a unique arbitration process. An arbitration clause can either be included in a contract or as a separate agreement, always in writing. The law allows the involved parties to design the resolution process to suit their needs and is not non-constrictive.

Litigation, on the other hand, can be utilized for the purpose of resolving contractual or others disputes or claims that fall in the purview of the Canadian law. Court decisions are fair, and processes are speedy.

The Canadians are open, well mannered and easily approachable. Once you are aware of their contract law and negotiation process, implementation is transparent, efficient and fair.

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