Rights of First Refusal (ROFR)
Content
Definition
Rights of First Refusal (ROFR) is a contractual right that gives its holder the opportunity to enter a business transaction with a company before the company can transact with others.
Usage and Context
Rights of first refusal (ROFR) gives someone the priority to enter a business deal before it’s offered to others.
Frequently asked questions
- What is the right of first refusal for the ROFR? The Right of First Refusal (ROFR) lets a party match any third-party offer on an asset or shares before they`re sold to someone else.
- What is the right of first refusal obligation? The right of first refusal gives an existing investor or party the chance to buy shares or assets before the owner can sell them to someone else.
- Who holds the right of first refusal? The right of first refusal is usually held by existing shareholders or early investors.
Benefits
Rights of first refusal (ROFR) allows its holder to have the first chance to enter a transaction before others.
Conclusion
Rights of first refusal (ROFR) gives the holder the chance to enter a deal before others can.
