Exquisite Corpse 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. Surrealism principal founder 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.
In a variant now known as picture consequences, instead of sentences, portions of a person were drawn.
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. (However, the game has been played with the usual orientation of foldings and four or more people, and there have been examples with the game played with only two people and the paper being folded lengthwise and widthwise, resulting in quarters.) 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", apparently regardless of 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.") (source wikipedia)