Right of First Refusal (ROFR) clause is a contractual clause that grants one party the option to accept or decline a proposed transaction before the other party engages with third parties. It gives the holder a preferential right to match or exceed third-party offers on similar terms. ROFR is common in real estate, partnerships, intellectual property, and equity agreements.
Drafting Tip
Give one party the right to match or better terms offered to the other party by a third party before the contract can proceed.
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