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The functional requirements document (FRD) is a formal statement of an applicationâs functional requirements. It serves the same purpose as a contract. The developers agree to provide the capabilities specified. The client agrees to find the product satisfactory if it provides the capabilities specified in the FRD.
A functional specification is a multi-page document that describes how the product or service will be provided. It is written by the vendor, and matches up detail by detail with the items listed in the requirements document.