Merilees and Warn's (1975) nonlinear interaction analysis of two-dimensional nondivergent flow is extended to examine the quasi-geostrophic two-layer model. Two sets of triads exist in this model (Salmon, 1978). The purely barotropic triads are the same as the triads examined by Merilees and Warn. Baroclinic-barotropic triads are found to exchange more energy or potential enstrophy with smaller or larger scales depending on the scale of motion as compared with the internal Rossby deformation radius and the relative wavenumber position of baroclinic and barotropic components.