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A change of control clause in a contract outlines the implications when one party undergoes a change in ownership or management. This clause is critical during transactions such as sales, mergers, or acquisitions, as it ensures a smooth transition when control shifts. Those experienced in contract drafting pay careful attention to this clause, anticipating future changes in company ownership. Despite often being seen as boilerplate text, well-drafted change of control clauses are essential in facilitating transitions, particularly in contexts like buying or selling a company.