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A change of control clause in a contract addresses the implications when one party undergoes a shift in ownership or management. This clause is crucial during transactions like company sales, mergers, or acquisitions. Often overlooked, it becomes significant when parties change hands, necessitating a smooth transition. Experienced contract drafters pay close attention to these clauses, recognizing their importance even though they may appear as boilerplate text. Change of control clauses are primarily relevant in contexts where companies are being bought or sold, ensuring proper handling of ownership transitions.