Whenever a new company or a new business or any such new entity is established, the parties involved in the formation must record the deal in a document. The document which records this formation is referred to as a formation agreement.
Such an agreement lists the names of the parties/individuals/entities involved in the establishing of the new business. It also specifies the date on which the establishment came into being, the type or the nature of the respective establishment etc. The agreement is then signed by all the involved parties.
The agreement also consists of the terms and conditions of the respective business such as the operations in which the business will be engaged, the procedures for handling the entire relevant task that will be a part of the business. Also mentions how to deal with the procedures and policies which will help in dealing with the obstacles which may arise in course of operations.
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Sample Formation Agreement
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