Canada's legal system is based on English common law,
applied in nine provinces and three territories; and French civil
law, applied in the province of Québec. Both legal systems
are subject to the Constitution of Canada.
1.1 The Governments
Constitutionally, Canada is a federal state, with some powers
assigned to the federal government and others to the provincial and
territorial governments.
For most businesses, provincial laws have a greater impact than
federal laws. This is because the provincial governments have
authority over "property and civil rights", including
contract law, labour relations, occupational health and safety,
consumer protection, real estate transactions, land use, municipal
law, securities law and regulation of professionals. Municipalities
derive their power from provincial statutes.
