Simple definition
A right to match or accept a proposed transaction before it is offered or completed with another party.
Commercial
What Does Right Of First Refusal Mean?
A right to match or accept a proposed transaction before it is offered or completed with another party.
Example in a contract
A contract may use “right of first refusal” when describing a right to match or accept a proposed transaction before it is offered or completed with another party.
What right of first refusal means in a contract
In a contract, this term should be read in the context of the surrounding clause, defined terms, cross-references, and governing law.
Why it may matter
Its practical effect depends on the exact wording and how it connects to the rights and obligations elsewhere in the agreement. Review the exact language rather than relying on the label alone.
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FAQ
Questions about right of first refusal.
What does right of first refusal mean in plain English?+
A right to match or accept a proposed transaction before it is offered or completed with another party.
Where might right of first refusal appear in a contract?+
In a contract, this term should be read in the context of the surrounding clause, defined terms, cross-references, and governing law.
Is this definition legal advice?+
No. ClauseInsight provides concise informational explanations. The legal effect of a term depends on the complete document, facts, and applicable law.