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Business Agreements

Formation Funding Agreement

May 6, 2013 by agri in Business Agreements with 0 Comments
Formation and funding agreements are made between two or more companies who unite in a partnership and one of the parties agree to provide fund for the purpose of improving the trade or business of the other company.  The parties may either form an LLC or improve the business opportunities together. The agreement discusses on the terms and conditions that the provider and the recipient of the fund should abide by.

The recipient of the funds must ensure that the funds are paid and held in an account in the name and the sole control of the recipient. He should also acknowledge that the payment of the fund does not represent a precedent for any funding in the future. The recipient of the fund must ensure that the funds provided are used only for the purposes that are specified in the agreement and to specifically carry out its obligation. Both the parties decide upon a date on which the funds has to be returned by the recipient to the provider and they make sure that they adhere to the rules and regulations.

FORMATION AND FUNDING AGREEMENT

FORMATION AND FUNDING AGREEMENT

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