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right of first refusal

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Financial Dictionary

Right of First Refusal

In general, the right of a person or company to purchase something before the offering is made available to others.

Investopedia Commentary

For example, a football team may have the right of first refusal on a player's contract. This would mean they can make the first offer, or perhaps even match other offers, before the player signs with another team. This term is also used frequently in real estate transactions.

See also: Right

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Legal Dictionary

Main Entry: right of first re·fus·al
Pronunciation: -ri-'fyü-z&l
: the right to have the first opportunity to purchase property upon the owner's decision to sell at the same terms offered by a third party or at predetermined terms called also preemptive right
Merriam-Webster's Dictionary of Law, © 1996 Merriam-Webster, Inc.
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