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A change of control clause in a contract outlines the implications when a party undergoes a change in ownership or management. This clause is crucial during transactions such as company sales, mergers, or acquisitions. While it may seem dormant, it becomes significant for sophisticated contract drafters who recognize that ownership changes are common. Properly drafting these clauses ensures a smooth transition when control shifts. They often arise in contexts where one party is buying or selling a company, highlighting their importance in maintaining clarity and order in contractual agreements.