Financial Agreement is a legally-binding contract that sets out the rights and obligations of parties in a financial transaction. It lays out who has responsibility for payment, when and how payments will be made, and under what circumstances a payment may be delayed or withheld. The agreement should consider all of the potential risks to both parties involved, and should provide protective clauses to ensure that neither party is exposed to an unfair amount of risk. By entering into a Financial Agreement, both parties agree to abide by its stipulations, allowing them to conduct their business transactions in a manner that is both secure and transparent.