Definition, Meaning & Synonyms
first-refusal
Noun
/ˌfɜːrst rɪˈfjuzəl/
Definition
The right of a person or entity to have the first opportunity to purchase or lease something before it is offered to others.
Examples
- Before the company sold the property, they offered the first-refusal to their long-time tenant.
- The investor had a first-refusal agreement that allowed them to purchase shares before they were made publicly available.
- Under the first-refusal clause, the seller must notify the buyer before accepting any other offers.
Meaning
First-refusal is a contractual right that allows one party the option to buy or lease an asset before anyone else has a chance to do so.
Synonyms
- Option
- Preemptive right
- Right of first offer
