Formation and exchange agreements are made between two or more firms who express their desire to form a joint venture and also agree up on the exchange of resources required by the parties involved. It is a contractual agreement in which the resources that are required by the first party are delivered to the second party, in exchange for an equivalent resource that the second party is ready to deliver to the first party. In this way the parties involved are mutually benefitted.
The agreement discusses on the location, date and the time at which the exchange can take place and the exchange may involve material, monetary or human resources. The members are pertained to follow the terms and conditions that are drafted in the agreement while exchanging the resources. Each party involved in the formation and exchange agreement is liable for the exchange and for any damage to the resources during the exchange.
Formation and Exchange Agreement
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