Legal Due Diligence · glossary
A clause giving the other party rights, usually to end the contract, when a new owner takes control of the company. A share sale triggers it, even though no contract moves. Novapay's right to end its contract on 60 days' notice was such a clause. Report §4.1 · Chapter 5 · Chapter 7
Explained in Chapter 5, The Request List and the Review, of Legal Due Diligence.
The main page for this term is Change of control, in M&A Foundations.
That is a change of control clause, and the sale itself will trigger it. A ban on transferring the contract matters less here. The target stays party to its own contracts, so nothing is transferred.Read Chapter 5, The Request List and the Review →
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