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A change of control clause in a contract specifies the consequences when one party undergoes a change in ownership or management. This clause is crucial during transactions like company sales, mergers, or acquisitions. While it may seem dormant in many agreements, experienced contract drafters pay close attention to these clauses, recognizing that ownership changes are common. Properly drafted change of control clauses facilitate smoother transitions in ownership. These clauses often emerge in scenarios involving the buying or selling of companies, reflecting their significance in contractual relationships.
