Right of first refusal

Right of first refusal or ROFR is a bargaining chip to enter into a business transaction before anyone else. If the latter party declines this step then the former is free to consider other offers. ROFR can side-line the owner’s potential profit from another party.

If someone has first refusal on something that is being sold or offered, they have the right to decide whether or not to buy it or take it before it is offered to anyone else.

A ROFR is seen mostly in joint-venture deals. It is mostly seen in every sector from real estate to entertainment.

Naturally, a ROFR agreements have time constraints on them.