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- W112013480 abstract "In reviewing agreements and licenses in connection with the acquisition of a business by a corporate client, an attorney often finds a clause that states that the agreement or license is not assignable or transferable without the consent of another party. A breach of this clause will usually result in a default under the agreement or license. When a client will acquire an incorporated business by merging that business into itself or into one of its subsidiaries, the attorney must decide whether the law requires that a consent be obtained to transfer the agreement or license in question to the surviving corporation or whether such agreement or license will transfer pursuant to a provision of the applicable jurisdiction's merger statutes. An attorney usually hopes to be able to conclude that a consent is not needed so that the client will not be forced to renegotiate aspects of the agreement or license as a quid pro quo for the other party's granting consent to the assignment.1 Unfortunately, the courts seem to offer very mixed, sometimes contradictory guidance on this basic transfer issue. Two lines of analysis are discernible in the few reported cases on point. One focuses upon the meaning of such words and phrases as involuntary assignment, continuity of interest, and successor in interest. The other line of analysis looks to the transaction and the agreement or license as a whole in order to perceive any risk of performance to the nonassigning party if the rights and duties in question are transferred from the disappearing to the surviving corporation. This article discusses the two lines of analysis one deemed formalistic and the other functional, as those designations have loosely been used in American legal criticism.2 This article contends that both lines of reasoning are akin to determining whether, pursuant to common law assignment principles, con-" @default.
- W112013480 created "2016-06-24" @default.
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- W112013480 date "2016-01-01" @default.
- W112013480 modified "2023-09-27" @default.
- W112013480 title "The Assignment of Rights, Franchises, and Obligations of the Disappearing Corporation in a Merger" @default.
- W112013480 hasPublicationYear "2016" @default.
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