The term 'FORMAL DEAL' can be summarized as a PACT, which is a four-letter word. A PACT is an agreement or contract between two or more parties, usually in writing, that is intended to be legally binding. It is often used to formalize a relationship between two or more people, organizations, or countries. Pacts are often used to define the terms of a business transaction, such as a sale or purchase, or to establish a partnership. They can also be used to set out the terms of a political agreement or treaty.