Running Contracts Clause Samples

The "Running Contracts" clause defines how existing agreements between parties will continue to operate during a specific period or under certain circumstances, such as during a transition or after a change in ownership. Typically, this clause clarifies that all terms, obligations, and rights under current contracts remain in effect and are to be honored by the parties involved, regardless of any changes in the broader business relationship. Its core function is to ensure continuity and prevent disruption by maintaining the enforceability of ongoing agreements, thereby providing stability and predictability for both parties.