Grice proposed the Cooperative Principle to describe how conversation participants generally follow conversational rules to be cooperative and make their intended meanings clear. He outlined four conversational maxims - quality, quantity, relation, and manner - that participants typically observe. However, maxims can be failed or flouted, allowing for conversational implicatures where a meaning is implied but not directly stated. Grice's theory explains how listeners infer meanings and intentions even when maxims are not strictly followed, demonstrating how conversations can still achieve cooperation through implicature.