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before getting into the details of change of control and assignment clauses lets use an example to illustrate why theyre important to a contracting party lets say that new edge carbons a supplier of raw materials is negotiating to become a supplier to spi components a manufacturer of bike parts and accessories new edge is excited about SPI becoming a client however new edge also knows that companies like SPI are acquired all the time and new edge doesnt want to be stuck in a contract with a party they may not want to do business with under basic contract law a contract that is silent on assignment is freely transferable to a third party that means that if new edge wants to have a say on who it does business with in the future it will have to make that explicit in its agreement with SPI so new edge adds a provision to the agreement stating that the supply agreement cant be assigned without its consent it also inserts a provision that says that if SPI undergoes a change of control
