A transaction can simply be defined as a process of exchange or any commitment made between two parties whereas both the parties get the desired benefits and services. Transactions can be monetary. They can be legal or can be administrative. Transactions are an inevitable part of the business processes taking place in the corporate organizations. Some transactions may require a verbal affirmation from both the parties while some complex transactions may require both the parties to sign up for a legal contract.
The transaction agreements are the documents that are used to establish the responsibilities and the rights of both the parties in context to a specific short term or long term business transaction. The document contains certain essential information such as the total duration up to which the transaction would be valid, the related payment procedures, the details of both the parties, and the terms and conditions regarding the premature termination of the transactions.
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