Contract Change Of Control

State:
Multi-State
Control #:
US-01558BG
Format:
Word; 
Rich Text
Instant download

Description

Change Orders are instructions to revise construction plans after they have been completed. Change orders are common to most projects, and very common with large projects. After the original scope (or contract) is formed, complete with the total price to be paid and the specific work to be completed, a client may decide that the original plans do not best represent his definition for the finished project. Accordingly, the client will suggest an alternate approach.


Common causes for change orders to be created are:


" The project's work was incorrectly estimated

" The customer or project team discovers obstacles or possible efficiencies that require them to deviate from the original plan

" The customer or project team are inefficient or incapable of completing their required deliverables within budget, and additional money, time, or resources must be added to the project

" During the course of the project, additional features or options are perceived and requested.

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FAQ

A clause in a business contract which stipulates that if ownership of a majority of the equity of a company changes hands, then the other party to the contract has a right to cancel, usually without liability for paying any compensation.

Summary. Parties normally seek to include provisions in an agreement that allow for either termination or an adjustment of their rights, such as payment, upon a change of structure or ownership of the other party. This is known as a change of control clause.

Also known as change of control. A provision in an agreement giving a party certain rights (such as consent, payment or termination) in connection with a change in ownership or management of the other party to the agreement.

Transfers by operation of law are generally considered involuntary transfers. They include court-ordered property transfers, bankruptcy-related transfers, and transfers to or from an executor or an administrator. Whether mergers and consolidations are transfers by operation of law is an open question.

1. Transfer of Percentage of Company Stock. A change of control typically includes the transfer of a certain percentage of the target company's issued and outstanding shares from the target company to the acquirer.

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Contract Change Of Control