Right of First Refusal and Leverage

Ever wanted the upper hand? Get the Right of First Refusal. Right of First Refusal is a legal concept that is akin to a call option. Right of First Refusal gives the holder the right to make the first offer or make a counter offer on an asset provided that there is another bidder. Right of First Refusal can give you the upper hand in a transaction of real estate, property, a patent, or other business dealing.

How doest he Right of First Refusal give you leverage? Basically, you should build the right to make the first offer into the decision because otherwise you won’t have the negotiating stance to make a larger impact on a transaction. If you can build the Right of First Refusal into a contract, do it.

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