RIGHT OF FIRST REFUSAL
right of first refusal.A potential buyer’s contractual right to meet the terms of a third party’s
higher offer. • For example, if Beth has a right of first refusal on the purchase of Sam’s house, and
if Terry offers to buy the house for $300,000, then Beth can match this offer and prevent Terry
from buying it. Cf. RIGHT OF PREEMPTION. [Cases: Contracts 16, 172; Sales 24, 64;
Vendor and Purchaser 18(.5), 57. C.J.S. Contracts §§ 37–41, 44, 46, 55–56, 58, 341, 506; Sales
§§ 41–42, 82; Trading Stamps and Coupons §§ 7–9; Vendor and Purchaser §§ 98–106, 115–116.] [Blacks Law 8th]