In Wald's General Relativity, an $n$-dimensional $C^{\infty}$ manifold $\mathit{M}$ is defined as a set, with subsets $\lbrace{O}_{\alpha}\rbrace$, which satisfies 3 properties. In particular, the third one (abbreviated) is:
If any two sets $\mathit{O}_{\alpha}$ and $\mathit{O}_{\beta}$ overlap, we can consider the map $\psi_{\beta}\circ \psi_{\alpha}^{-1}$, which takes points from subset $\psi_{\alpha}[\mathit{O}_{\alpha} \cap \mathit{O}_{\beta}]$ to points in subset $\psi_{\beta}[\mathit{O}_{\alpha} \cap \mathit{O}_{\beta}]$. We require these subsets of $\mathbb{R}^{n}$ to be open and this map to be $\mathit{C}^{\infty}$.
My question is: what is the purpose of this clause in the definition of a manifold? It appears to allow the existence of a transformation from different coordinate systems (from $\psi_{\alpha}$ to $\psi_{\beta}$). It requires the existence of an inverse. Other than that, is there any other motivation for defining the manifold in this way?