Exchange transaction is defined as the molecular building block of commerce. The exchange transaction is demonstrated with two parties that agree to and fulfill mutual conditions of satisfaction, which is denoted by C and P. The first party(C) is considered as either the customer or buyer and the second party (P) is called the performer or seller. To illustrate how this process works; as P accepts C’s request to provide some information for C, in exchange for which C will provide a payment to P. The transaction can be illustrated as a cycle broken down into 4 parts; Request, Negotiation, performance, and settlement. Fernando Flores and Terry Winograd design the exchange transaction. In the business world, it is considered as the Action Workflow in the business process management systems of Action Technologies. Workflow is a map to illustrate the commercial process and support them through Technology

Request: When C is requesting to P to provide the service.

Negotiation: When C and P come to an agreement on what exactly what will be provided and what payment shall be established.

Performance: When C out the action need in the agreement he notifies P when he shall be finish.

Settlement: When P accepts C's proposal, and pays.

Fernando Flores and Terry Winograd design the exchange transaction. In the business world, it is considered as the Action Workflow in the business process management systems of Action Technologies. Workflow is a map to illustrate the commercial process and support them through Technology.

Example:

When two businesses come intact with one another, it is easy for them to tell one another what they want. But when they are not face to face with one another it is hard for them to communicate (like the Internet) because of various breakdowns loop errors. Such as Communication breakdowns, request breakdowns, Negotiation breakdowns, performance breakdowns, settlement breakdowns, missing-performer breakdowns, and missing-customer breakdowns which are the breakdown loop errors.

1)Communication breakdowns are when the failure of email like the loss or corruption of a file, document or form anywhere in the transaction.

2)Request Breakdown is the failure of the request from C to P.

3)Negotiation breakdowns are the ignorance of P to C. When C and P have a difference in what was agreed.

4)Performance Breakdowns is when P and C have a miscommunication with one another when the designated finish time should occur.

5)Settlement breakdowns are when C is not at the satisfaction stage and P does not follow up with the agreement.

6)Missing-performer breakdowns are when C puts a request and no one has taken any responsibilities. Like when C and P have miscommunication on who does what.