What Is an Extended Resource Sharing Agreement?

Extended resource sharing agreements are commonly made in business settings.

Resource sharing agreements are commonly used in the corporate environment in America. They allow businesses to contract mutually for the use of certain assets. Often, these agreements can be extended based on the changing needs of the business.

Definition

A resource sharing agreement is a legally binding contract between two or more parties to share a certain resource in which all parties have an interest for a defined period of time. An extended resource sharing agreement is simply an addendum to the original contract extending the time period. The shared resource can be tangible, such as equipment or money, or intangible, such as a trademark or special technology.

Forming an ERSA

Because a resource sharing agreement is a business contract, all parties involved in the agreement will usually hold a formal business meeting to discuss the terms with lawyers present. The lawyers will form the official version of the legal document.

Elements of an ERSA

An extended resource sharing agreement has several elements.These include the new extended date and term, the resource sharing plan, identification of shared cost, cost allocation strategy, modification and reconciliation procedures, general terms and conditions and lastly, signatures. All changes from the original agreement should be noted.

References

• Nashville.gov: Resource Sharing Agreement
• Onecle.com: Sample Contracts - Resource Sharing Agreements