Termination Clause

It's in the contract between UPS and Amazon. And Amazon has placed in the $300-million-a-year delivery contract the clause, "...and should there exist over 10,000 driverless cars and/or over 25,000 registered delivery drones in operational status, as reported monthly by TechCrunch, then this contract shall immediately terminate."

Amazon is protecting itself from the likely much higher UPS rates versus those of solar-powered, electric drones that never go on strike. Amazon's lawyers will have cleverly inserted this termination clause in the distribution contract so that they are "ready for the future," more or less.

What does UPS then...do? Maybe portable bounce houses?

Related or Semi-related Video

Finance: What is a Commitment Letter?5 Views

00:00

Finance a la shmoop what is a commitment letter? dear Rebecca it's been fun and

00:08

all but asking me to move in with you was a real turnoff so uh have a nice [Rebecca reading letter]

00:14

life yeah that would be a fear of commitment letter I know that one well

00:19

well so what's a commitment letter then all right well you need dough but you

00:23

don't need it today you need it in six months when construction is finished on

00:27

your cabin by the lake at that point you'll convert your very expensive

00:31

building loan into a normal mortgage well you can go to the bank and for a [Man walks into bank]

00:36

small ish fee get a commitment letter from them which stipulates that assuming

00:42

nothing material changes between now and then you will in fact then get a loan

00:46

for one hundred fifty two thousand dollars at 5 percent fixed interest rate

00:49

for 30 years the bank is then committed to giving you that loan when you know [Contract stamped with committed]

00:54

eventually you need it that way you don't have to worry about your bank you

00:59

know breaking up with you which is nice because it's tough getting

01:02

the It's not you it's me speech from a guy in a bowtie [Man wearing bow tie talking to a man in the bank]

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