Further cooperation: Overview, definition, and example
What is further cooperation?
Further cooperation refers to a contractual obligation requiring parties to continue working together after an agreement has been signed to ensure the successful execution of their respective obligations. This clause is commonly included in business contracts, mergers, settlement agreements, and intellectual property transfers to require ongoing support, information sharing, or assistance even after the primary contract obligations are fulfilled.
For example, in a merger agreement, both companies may be required to provide additional documentation, approvals, or support after the merger is finalized to ensure a smooth transition.
Why is further cooperation important?
Further cooperation is essential because many business agreements require follow-up actions beyond the initial execution of the contract. Without this clause, a party could refuse to assist in necessary steps, potentially causing delays, compliance issues, or financial losses.
For businesses, further cooperation clauses help ensure ongoing obligations, reduce conflicts, and facilitate smooth post-contract transitions. They are particularly useful in agreements where additional approvals, technical support, or regulatory compliance may be required.
Understanding further cooperation through an example
Imagine a software company sells its technology to a larger corporation. The contract includes a further cooperation clause requiring the original development team to provide technical support and knowledge transfer for six months after the sale. This ensures the acquiring company can successfully integrate and operate the software.
In another scenario, a settlement agreement between two businesses requires one party to assist in regulatory filings even after payment obligations are fulfilled. The further cooperation clause ensures both parties continue working together to complete outstanding legal or administrative requirements.
An example of a further cooperation clause
Here’s how a further cooperation clause might appear in a contract:
“The Parties agree to provide reasonable assistance, documentation, and support as may be necessary to fulfill the intent of this Agreement. Such cooperation shall include, but not be limited to, executing additional documents, providing relevant information, and assisting with any regulatory or legal requirements. This obligation shall survive the termination of this Agreement.”
Conclusion
Further cooperation clauses ensure that parties continue to assist each other even after the primary obligations of a contract are completed. This is particularly important in business sales, mergers, legal settlements, and technology transfers, where ongoing collaboration is needed.
By including a further cooperation clause, businesses can reduce post-contract disputes, ensure smooth transitions, and protect their interests in ongoing projects or regulatory matters.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.