A cooperative agreement template used to prepare a legal contract between two parties who are taking part in some type of joint partnership. The purpose of this agreement is to require the permission of the opposing party for their cooperation in certain aspects of the trade. This agreement is the source through which both parties get assigned of their duties and rights. In this agreement the main duty that they are referring to is their cooperation. Once the party agrees to cooperate with the other party by signing this contract, they become legally bound to cooperate with each other. The agreement describes the factors in which they need the other party’s cooperation.
Importance of Cooperative Agreement
A cooperative agreement is usually made when one of the parties wants to do trade with the other but has an objection with their high prices. Hence, they wish the other party would cooperate with them and lower the prices for them to easily do trade with them. There are many more such examples which are used to explain the purpose of a cooperative agreement. For example, a buyer enters a trade market to buy food items from a certain company that has high prices. After becoming one of their business partners, they can create a cooperative agreement in which they request the company to cooperate with them in terms of the prices. In turn, the buyer will buy more products from them and benefit from their sales.
Content of Cooperative Agreement
A cooperative agreement template is composed of all the terms and conditions of the cooperation between the two parties. If a person is willing to compose a cooperative agreement here we have given a descriptive in sight over the contents of a cooperative agreement:
1- This legal document starts off with the date on which the agreement will be initiated.
2- Secondly, a detailed introduction of both parties. Where the name, contact information, respective addresses are written.
3- The purpose for which the agreement is being created.
4- The description of the terms of which the party requires the cooperation of the other party. This part of the agreement is usually more detailed and descriptive as compared to the others. The creator of the document must use easy lingo and make sure their words will be easy understandable to the reader.
5- The writer must specify the confidentiality terms. This part specifies the people that can be allowed access to the information provided by the document.
6- Lastly, one of the most crucial steps is to make sure that the reader knows what will be outcome of violation or breach of this document. The violator can usually be fined or terminated from the business deal.
Both the parties are required to sign the document which indicates the initiation of the contract. Once the agreement has been signed it means that both parties are tied together by the law to follow the terms stated in this document. Unless there is an exceptional case where the parties negotiate and agree to change a few statements.
Template for Cooperative Agreement
www.irs.gov