First refusal definitions
| Word backwards | tsrif lasufer |
|---|---|
| Part of speech | The part of speech of the word "first refusal" is a noun. It refers to the right to have the first opportunity to purchase or lease something before it is offered to others. |
| Syllabic division | first re-fus-al |
| Plural | The plural of "first refusal" is "first refusals." |
| Total letters | 12 |
| Vogais (4) | i,e,u,a |
| Consonants (5) | f,r,s,t,l |
First refusal is a common clause in contracts that gives a party the right to match any offer or bid made by another party before the deal is finalized. This clause essentially provides the party with the first opportunity to accept or decline a proposed transaction before it is offered to others.
Importance of First Refusal
First refusal clauses are often included in various agreements to protect parties from losing out on valuable opportunities. By giving a party the option to match a competing offer, it allows them to maintain control over the transaction and prevent someone else from swooping in and taking advantage of a better deal.
How First Refusal Works
When a first refusal clause is in place, the party with this right must be notified of any proposed transaction. They are then given a specified amount of time to decide whether they want to proceed with the deal on the same terms. If they decline or do not respond within the designated timeframe, the offer can be presented to others.
Benefits of First Refusal
For the party holding the first refusal right, it provides a sense of security and control over important transactions. They have the opportunity to evaluate the terms of the deal and decide if they want to proceed without feeling rushed or pressured by outside parties. This can be particularly advantageous in competitive markets where opportunities are scarce.
Overall, first refusal clauses serve as a valuable tool in contract negotiations, ensuring that parties have the chance to consider and respond to offers before committing to a transaction. By understanding how this clause works and its benefits, parties can better protect their interests and make informed decisions in various business dealings.
First refusal Examples
- She had the first refusal on the apartment next door.
- The company offered him the first refusal on the new project.
- As per the contract, they had the first refusal on any additional resources.
- He exercised his first refusal right to purchase the rare painting.
- The tenant had the first refusal to renew their lease at the end of the term.
- They had the first refusal to book the venue for their event date.
- The company granted its employees the first refusal on discounted stocks.
- She was given the first refusal to join the prestigious club.
- The artist gave his close friend the first refusal on his latest masterpiece.
- In the will, the siblings were granted first refusal on their parent's estate.