Right of First Refusal

Definitions

1. A contractual right giving a party the option to match an offer before an asset or share can be sold to someone else. In startups, rights of first refusal commonly affect secondary-share transfers.

   In plain English: A right to match another buyer's offer before a sale can go through.

   Example: "The founder could not sell shares in the secondary without dealing with the company's right of first refusal."

Related Terms

• Term Sheet
• Due Diligence
• Drag Along
• Dual-Class Shares
• Escrow
• Heads of Terms
• LOI
• Public Benefit Corporation
• ROFR
• Secondary Market