Terms and Conditions of Contracts for Projects from POME by Gautam Koppala VT
clause presents a risk to the Organization because contract termination can result in a substantial financial loss.
A Change in Control clause should be strongly opposed in negotiations. If unavoidable, a Change in Control clause must be approved by the SBU Director of Contracts or legal counsel. The standard clause (provided below) is an example of a clause that protects Project/ Product/ Services Organization’s interest by:
Limiting the types of events that constitute a change in control;
Requiring an actual detriment to result from the change; and
Entitling Project/ Product/ Services Organization to compensation.
The standard clause is drafted as one-way, and does not apply to a change in the control of the buyer. Whether Project/ Product/ Services Organization is best served by making the clause mutual or seeking an alternative concession is left
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