GlossaryRights of First Offer (ROFO)Related ContentA contractual right that requires an asset holder in a company to offer to sell its asset to the right holder before offering to sell it to third parties. Right of First Offer is a contractual right that obligates the owner of an asset to offer it to the right holder before selling it to any third party.

Right of First Offer Definition. GlossaryRight of First Refusal (ROFR)Related ContentThis term has multiple meanings. A. Right of First Offer to Purchase. In the context of:A corporation or a limited liability company, a contractual obligation of an equity holder (a stockholder or member, as applicable) to offer to sell its equity to the other holders, or sometimes back to the company, after receiving a bona fide offer from a third party to buy that equity stake. A Right of First Refusal clause can be used in several different types of contracts. The seller is obligated to exclusively negotiate in good faith with the holder of the ROFO and to try to reach an agreement before starting negotiations with a third party. At any time that Lessor desires to sell the Premises, he shall first offer to Lessee the terms and conditions acceptable for said sale. The right of the first refusal lease clause or addendum is a legally-binding document that gives a tenant the first right to purchase a property if it goes up on the market. Circumstances vary, and therefore the language of a ROFR clause will vary as well. The Right of First Offer or Right of First Refusal, clause provides that, in the event that the Landlord opts to sell the Premises or lease an additional specified space, the Tenant must be given the opportunity to purchase or lease the space. If you have this clause in your lease, the owner of the property has to let you know that she's thinking about selling the property, and give you a chance to buy it. A right of first offer requires the owners to offer the property, on terms of their choosing, to the person who holds the right (called the “holder” or “grantee”) before offering the property to others.

Exhibit 10.10 . A right of first refusal (“ROFR”) is a preemptive right to purchase specific real property at some future time upon certain defined terms and conditions. Right of First Offer. Taking this into account, it is advisable to specifically discuss the terms of a lease prior to entering into or renewing such a contract whether this be for commercial or residential property. This article looks at rights of first offer (ROFOs), rights of first refusal (ROFRs), and options (sometimes referred to collectively in this article as “preemptive rights” and by some practitioners as “preferential rights”) for real property. So if an offer comes in, the Andersons will have 48 hours from the time they are notified to either cancel their contract with the Smiths or to remove all contingencies and move forward on closing on the home.

Right of First Offer Agreement - Willamette Industries Inc. and John Hancock Mutual Life Insurance Co. RIGHT OF FIRST OFFER AGREEMENT This agreement is made and entered this 15th day of May, 1996, by and between Willamette Industries, Inc., an Oregon corporation ('Seller'), and John Hancock Mutual Life Insurance Company, a Massachusetts corporation ('Buyer'). Sometimes also called a right of first negotiation, a right of first offer means that you get the first chance to buy a property. See discussion for distinction between First Offer and First Refusal. Right of first offer is an agreement that when an owner is ready to sell or lease an asset, the holder of the right of first offer gets the first chance to buy or lease the property within a given time frame. 3d 203, Once the holder has made the offer, the seller is able to accept or refuse the offer. Shareholders agreement As per the earlier example, one type of contract where a RoFR is typically used, would be a shareholder agreement. While the right of first refusal appears not to limit the founders’ ability to transfer their shares, it can have that impact (third parties may not spend the time to negotiate a deal with founders if they believe the company or venture capital investor can step in and take their offer via the right of first refusal). A right of first purchase can be a right of first offer, a right of first negotiation, a right of first refusal or a combination of these rights. A Major Investor shall be entitled to apportion the right of first offer hereby granted to it among itself and its Affiliates in such proportions as it deems appropriate.