A custodial agreement is a legal document which is framed or drafted when a party holds an asset belonging to another party (registered owner) for a given or specified period of time as a custodian. These agreements are formally written with the advice of a legal expert so that no scope of a mistake or error is left. A custodial agreement is a common type of a contract which is made for a fixed period of time during which none of the parties can violate the terms and conditions given in the document.
A custodial agreement must consist of details of the actual owner and the custodian along with the important dates such as the starting date of agreement, period of agreement and the termination date. Other than this, the clauses or terms and conditions must be written down in detail and in an elaborate manner so that one can refer to the document in case of any kind of confusion during the agreement period.
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