The Province of Ontario has been first for a number of things.
It was one of Canada's first provinces. It was the first
province to pass a law which required drivers and passengers to
wear seat belts. It was the first province to pass human rights
legislation. Yet Ontario is the last province to repeal bulk sales
legislation. Ontario's Bulk Sales Act (the
Act) continues to be in effect and continues
to surprise purchasers.
The Act is intended to protect creditors from a vendor selling
its assets without first paying the debts owed to creditors. The
Act protects creditors by imposing certain duties on the purchaser
of the assets. If the purchaser fails to comply with the Act, the
sale to the purchaser is voidable. The vendor's creditors (or
its trustee in bankruptcy) may apply to set aside the transaction.
Where this has occurred and the purchaser has taken possession of
the assets, the purchaser is personally liable to the creditors for
all money or other property
