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A change of control clause in a contract outlines the implications when one party experiences a shift in ownership or management. This clause is critical during events such as company sales, mergers, or acquisitions. It ensures smooth transitions when companies change hands. Experienced contract drafters pay close attention to these clauses, acknowledging their potential impact in the future, even if they are often considered boilerplate. Change of control clauses are particularly relevant in scenarios of purchasing or selling a company, making them essential for careful contract management.
