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A change of control clause in a contract specifies the consequences when one party's ownership or management changes, making it crucial during transactions such as a company sale, merger, or acquisition. While often seen as a standard provision, experienced contract drafters pay close attention to these clauses to ensure a smooth transition when companies change hands. These clauses become particularly significant in the context of buying or selling a company, as they help safeguard the interests of the parties involved by outlining the protocols that should be followed in the event of a change in control.
