The term "right of first refusal" can refer to many different types of arrangements between many different types of parties. Often, it is an agreement between co-owners of property or a business, allowing each of the co-owners the opportunity to purchase the party's interest prior to a sale to an outside party. Property law typically disfavors bans on the alienation of property. A right of first refusal can ensure that co-owners will not be forced into co-ownership with strangers without the opportunity to first buy the interest, without creating a full ban on alienation.

Investors may also desire a right of first refusal in investment agreements. This will ensure that they do not become co-owners of a business with strangers before having the opportunity to purchase additional equity themselves.

A right of first refusal can be a clause in a larger agreement, or a stand alone document. If you are interested in a right of first refusal agreement, please contact us.