Right Of First Offer

Right Of First Offer
A contractual obligation by the owner of an asset to a rights holder to negotiate the sale of an asset with the rights holder before offering the asset for sale to third parties. If the rights holder is not interested in purchasing the asset or cannot reach an agreement with the seller, the seller has no further obligation to the rights holder and may sell the asset freely.

A right of first offer is related to a right of first refusal, but the former is considered to favor the seller while the latter is considered to favor the rights holder. Assets that have a right of first refusal attached to them can be more difficult to sell because potential buyers may not want to go to the trouble of negotiating a deal that must be offered to another party first.


Investment dictionary. . 2012.

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Look at other dictionaries:

  • right of first offer — USA This requires an equity holder in a company (such as a stockholder or a member) to offer to sell its equity to the other holders before offering to sell to third parties. If the other holders do not buy such offered equity, the selling holder …   Law dictionary

  • Right of first refusal — (ROFR or RFR) is a contractual right that gives its holder the option to enter a business transaction with the owner of something, according to specified terms, before the owner is entitled to enter into that transaction with a third party. In… …   Wikipedia

  • rights of first offer — USA This requires an equity holder in a company (such as a stockholder or a member) to offer to sell its equity to the other holders before offering to sell to third parties. If the other holders do not buy such offered equity, the selling holder …   Law dictionary

  • Right Of First Refusal — In general, the right of a person or company to purchase something before the offering is made available to others. For example, a football team may have the right of first refusal on a player s contract. This would mean they can make the first… …   Investment dictionary

  • have the right of first refusal — have (the right of/to) first refusal give (someone) (the right of/to) first refusal to offer to sell someone something before you offer it to anyone else. Manfield has the right of first refusal on any surplus stock …   New idioms dictionary

  • have the right to first refusal — have (the right of/to) first refusal give (someone) (the right of/to) first refusal to offer to sell someone something before you offer it to anyone else. Manfield has the right of first refusal on any surplus stock …   New idioms dictionary

  • the right of first refusal — (the right of) first refusal : the right to accept or refuse something before it is offered to anyone else If we decide to sell the house, we ll give our tenants first refusal. [=we will offer to sell the house to our tenants before offering to… …   Useful english dictionary

  • give (someone) the right of first refusal — give (someone) (the right of/to) first refusal to offer to sell someone something before you offer it to anyone else. I have given my existing publishers first refusal on my next book. (often + on) …   New idioms dictionary

  • give (someone) the right to first refusal — give (someone) (the right of/to) first refusal to offer to sell someone something before you offer it to anyone else. I have given my existing publishers first refusal on my next book. (often + on) …   New idioms dictionary

  • first refusal — noun The chance to buy (esp property) before it is offered to others • • • Main Entry: ↑first * * * (the right of) first refusal : the right to accept or refuse something before it is offered to anyone else If we decide to sell the house, we ll… …   Useful english dictionary

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