Cooperation Clause

"You two stop fighting and get along or I'm pulling this car over right now."

That's a cooperation clause, domestic-style.

These clauses exist in business as well, and work along the same lines. "You'll provide us with 4 million tons of plastic each month...and we'll provide you with cash plus access to our stamping machinery on weekends." Or something like that.

It's more or less a contract that covers operational issues for how two entities will, in fact, cooperate...while driving down the business highway of life.

Find other enlightening terms in Shmoop Finance Genius Bar(f)