Default or Change of Control Clause Samples

The Default or Change of Control clause defines the rights and remedies available to a party if the other party defaults on its obligations or undergoes a significant change in ownership or management. Typically, this clause outlines what constitutes a default, such as failure to make payments or comply with key terms, and specifies what events qualify as a change of control, like a merger, acquisition, or sale of a controlling interest. Its core function is to protect parties from increased risk or instability by allowing them to take specific actions—such as terminating the agreement or demanding immediate payment—if a default occurs or if the other party's control structure changes significantly.