What is a Right of First Refusal (ROFR) and can it be used nefariously?
In: Economics
Can you provide more specific context? But in general, it means that somebody or some entity has to first be offered something before being offered for general sale.
Say you have partners who own a business. If there’s a Right of First Refusal clause of the partnership agreement, then if one partner wants to sell their portion of the business, the other partner would have the right to buy the half they don’t yet own before the selling partner could approach anybody else to buy or list for sale on the general open market. Only when the other partner declined to but the rest of the company can it be sold to somebody else.
Latest Answers