Change-of-Control Clause

A contract provision specifying what happens to a vendor agreement if either party is acquired, merged with another entity, or undergoes a significant ownership change.

For the customer, the change-of-control clause determines whether an acquisition automatically terminates the vendor agreement, grants the vendor the right to renegotiate terms under the new ownership, or transfers the agreement to the acquirer unchanged, making it one of the most commercially consequential clauses in any significant vendor contract and one of the most consistently overlooked during initial contract negotiation.