Formation and Structuring agreement is an agreement that is made between two or more companies that are working together in partnership and wants to bring about certain formation and structuring changes in the transactions. The agreement lists the terms and conditions that the parties involved are required to follow. Both the parties agree to the terms and conditions and decide up on the responsibilities that they need to take up.
Formation and Structuring agreement contains the government rules and regulations that the parties should adhere to. Both parties exchange their interests and take all actions legally and reasonably necessary to consummate the formation and structuring transactions. Both the parties mutually agree to the rules of the agreement and if any one of the party is considered to violate the rules then the other parties involved have the rights to take legal action and also terminate the agreement if required.
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