right of first refusal

Popular Terms
Contractual right under which a seller must give a party (such as a partner) an opportunity to match (within a specified timeframe) a price at which a third party agrees to buy a specified asset (such as a certain number of shares), on the same terms offered to the third party. Compare with preemption right.

Use 'right of first refusal' in a Sentence

I explained to him that we had right of first refusal and he did not know what I meant, so I explained it to him.
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If you have the right of first refusal you need to figure out if you should pass or if you should take on the purchase.
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When you have right of first refusal you are in a great position to be able to make the first decision on if you want it or not.
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