Whenever a company or an entity plans a project, it needs appropriate amounts of funds to implement the plan and convert it into a reality. The project planners might not be able to extend the funds themselves and hence need to get assistance from financers or other entities. Such deals must be documented and theses documents are called funding agreements.
The agreement records the name of all the parties involved along with the amount of funds being provided for the project. The agreement also records the terms and conditions of the transaction such as the time frame for which funds are being extended, the varied deadlines which the project is expected to meet etc. Once all the involved parties have signed the agreement it becomes legally binding. Thus any violation form any of the involved parties might lead to consequences which are generally mentioned a priori to the signing of the agreement.
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Sample Funding Agreement
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