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A change of control clause in a contract outlines the consequences when a party's ownership or management changes, making it essential during events like sales, mergers, or acquisitions. This clause is critical in managing transitions smoothly, as companies frequently change hands. Those experienced in contract drafting tend to pay close attention to the formulation of change of control clauses, despite them often being considered boilerplate language. The importance of these clauses becomes particularly evident in negotiations involving company purchases or sales. Careful drafting ensures that the transition is handled effectively and without complications.
