Fold it in three, and pass it to me.

The technique was invented by Surrealists and is similar to an old parlour game called Consequences in which players write in turn on a sheet of paper, fold it to conceal part of the writing, and then pass it to the next player for a further contribution. André Breton reported that it started in fun, but became playful and eventually enriching. Breton said the diversion started about 1925, but Pierre Reverdy wrote that it started much earlier, at least before 1918.^[1][2]

In a variant now known as picture consequences, instead of sentences, portions of a person were drawn.^[3]

Later the game was adapted to drawing and collage, producing a result similar to children’s books in which the pages were cut into thirds, the top third pages showing the head of a person or animal, the middle third the torso, and the bottom third the legs, with children having the ability to “mix and match” by turning pages. It has also been played by mailing a drawing or collage — in progressive stages of completion — to the players, and this variation is known as “exquisite corpse by airmail”, or “mail art,” depending on whether the game travels by airmail or not.

The name is derived from a phrase that resulted when Surrealists first played the game, “Le cadavre exquis boira le vin nouveau.” (“The exquisite corpse will drink the new wine.”)^[4][5]

Source: Wikipedia:  http://en.wikipedia.org/wiki/Exquisite_corpse