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The change of control clause in a contract outlines the implications when one party experiences a shift in ownership or management. This clause is crucial during events like a company sale, merger, or acquisition. While it may seem standard and often remains unnoticed, knowledgeable parties pay close attention to its drafting to ensure smooth transitions during ownership changes. Such clauses are significant for contract sophistication, reflecting a proactive approach to future changes in company control. They most commonly arise in contexts involving the buying or selling of a company.
