Termination or Assignment upon a Sale Sample Clauses
The 'Termination or Assignment upon a Sale' clause defines what happens to the contract if one party sells its business or assets. Typically, this clause allows the contract to be either terminated or assigned to the buyer in the event of a sale, often requiring notice to the other party or their consent. For example, if a company is acquired, this clause determines whether its existing contracts can be transferred to the new owner or must be ended. Its core function is to provide certainty and flexibility for both parties in the event of a sale, ensuring that contractual obligations are clearly managed during significant business changes.
Termination or Assignment upon a Sale. This Agreement shall terminate automatically upon a Sale provided that the Employee enters into a new employment agreement with the acquiring entity as a part of the Sale. If no new employment agreement is entered into with such acquiring entity, then the Company’s obligations under this Agreement shall be assigned to and assumed by such acquiring entity as provided in Paragraph 12 herein.