An approval clause requires that the obligor approve any assignment of a contract.

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An approval clause is a provision in a contract that requires the obligor's approval or consent for any assignment of the contract to a new party. This is intended to prevent the assignment of the contract to someone who may not be capable of fulfilling the obligations or meeting the expectations of the other party. Therefore, the obligor's approval is required before the assignment can take place.

An Approval Clause Requires That the Obligor Approve Any Assignment