This clause requires both parties to work together in good faith to make the contract succeed. It typically means you must share information, respond to requests promptly, and not deliberately obstruct the other side's performance. In UK and US law, courts often imply a duty of good faith even without this clause, but writing it down makes expectations clear and gives you grounds to sue if someone refuses to cooperate. For example, if you're buying software services, the vendor must answer your technical questions and you must provide necessary data on time. Without this clause, disputes about "who didn't cooperate" become harder to prove.
Push for specific examples of what cooperation means (response times, meeting frequency, data sharing rules) rather than vague language. If the clause just says "parties shall cooperate," add details like "within 5 business days" or "by providing monthly reports." This prevents the other side from claiming later that they cooperated enough when you felt they didn't. ---
Frequently Asked Questions
What does this clause mean in simple terms?
This clause requires both parties to work together in good faith to make the contract succeed.
Why should I care about this clause?
It typically means you must share information, respond to requests promptly, and not deliberately obstruct the other side's performance.
What are my options?
In UK and US law, courts often imply a duty of good faith even without this clause, but writing it down makes expectations clear and gives you grounds to sue if someone refuses to cooperate.
How does this affect small businesses?
For example, if you're buying software services, the vendor must answer your technical questions and you must provide necessary data on time.