Contracts entered into and in force need to be replaced by fresh contracts after merger or takeovers of entities, pursuant to orders passed by Courts or Tribunals." Do you agree? Give reasons.

Mergers, amalgamations, acquisitions, takeovers or any other kind of corporate restructuring is undertaken for the purpose of expansion, growth or diversification of business. While it is generally understood that in a merger or amalgamation, the assets and liabilities, including contracts, of the transferor company are transferred to the transferee company, the statement that contracts "need to be replaced by fresh contracts" is not entirely accurate. Here's a nuanced perspective: Corporate restructuring is much more than economic synergies, but it covers other intangible factors as well, such as corporate cultures, practices, policies, and environment etc. Thus, timely integration of systems, applications and data provide the corporate information needed to achieve the post-merger objectives. Post-merger reorganization includes the reorganization of each and every aspect of a company's functional area for the purpose of achieving the planned objectives of takeover, amalgamation, merger or demerger. Every scheme of merger and amalgamation is sanctioned by the Court or Tribunal. Post-merger, the transferor company is dissolved and all its assets and liabilities are transferred to the transferee company. Further, the companies shall also ensure that the contracts entered by the merging entity shall continue to be transferred in the name of merged entity. However, other aspects in the contracts with a third party may require the company to inform about the merger or may give rise to the other party to terminate the contract (e.g., change of control clauses). Normally, lease agreements that contain fixed tenure may release the landlord from such restriction in the event of restructure of lessee entity. Further, the merged entity would need to check various rights and obligations mentioned in the contracts with third parties and should allocate teams to identify and ensure compliance of those requirements. In short, all existing contracts with its terms shall be reviewed. In conclusion, while the legal transfer of contracts happens by operation of law or court order, a review and sometimes renegotiation or novation of contracts might be necessary due to specific clauses (like change of control) or for operational efficiency, but it's not a universal requirement to replace all contracts with fresh ones. Therefore, I partially disagree with the statement that contracts need to be replaced by fresh contracts, as legal transfer often suffices, though practical considerations may lead to renegotiation.