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A change of control clause in a contract outlines what occurs when one party undergoes a change in ownership or management. It is crucial during transactions like sales, mergers, or acquisitions. While often seen as standard boilerplate, this clause becomes significant when companies change hands. Those who draft contracts with sophistication pay careful attention to these clauses to ensure smooth transitions in the future. Change of control clauses are particularly relevant in scenarios involving the buying or selling of a company, emphasizing their importance in navigating ownership shifts effectively.
