FIRST REFUSAL Meaning and
Definition
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First refusal refers to a right or option granted to an individual or entity, usually by an owner or seller, to have the initial opportunity to purchase or acquire something before it is offered to others. It grants the holder a privileged position in the event that the owner decides to sell or transfer ownership of the particular asset, such as real estate, stocks, or intellectual property.
This contractual provision ensures that the party with the right of first refusal is given the chance to match any terms or conditions offered by a third party who wishes to purchase the asset. If the holder of the right of first refusal exercises their option, they effectively prevent the asset from being sold to anyone else.
The benefit of first refusal lies in its ability to protect the holder's interests and maintain control over particular assets or opportunities. It allows the holder to evaluate the terms and decide whether they wish to proceed with the purchase, maintaining flexibility and control over the asset.
First refusal rights can be negotiated and included in various types of agreements, such as lease agreements, partnership agreements, or contracts involving co-owners or investors. The purpose is to give priority to an existing party over potential buyers who may emerge later on, providing a safeguard against unexpected or unfavorable sales or transfers.
Common Misspellings for FIRST REFUSAL
- dirst refusal
- cirst refusal
- virst refusal
- girst refusal
- tirst refusal
- rirst refusal
- furst refusal
- fjrst refusal
- fkrst refusal
- forst refusal
- f9rst refusal
- f8rst refusal
- fiest refusal
- fidst refusal
- fifst refusal
- fitst refusal
- fi5st refusal
- fi4st refusal
- firat refusal
- firzt refusal
Etymology of FIRST REFUSAL
The etymology of the term "first refusal" can be traced back to the Middle English language. The word "first" originated from the Old English word "fyrst", meaning "foremost" or "earliest".
The word "refusal" came from the Old French word "refus", meaning "to reject" or "to refuse". This French word further derives from the Latin word "refusare", which has the same meaning.
When combined, "first refusal" signifies the right or option to be the first to reject or refuse something. It is commonly used in legal or business contexts to describe a specific contractual right, indicating that a person or entity has the first opportunity to accept or decline an offer or to purchase something before the opportunity is extended to others.
Idioms with the word FIRST REFUSAL
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give (one) (the right of/to) first refusal
The idiom "give (one) (the right of/to) first refusal" refers to offering someone the opportunity to have or acquire something before anyone else, with the privilege of being able to accept or decline the offer. It implies that the person has the first chance to accept or refuse the proposed deal, often before it is offered to others.
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give sb (the right of/to) first refusal
The idiom "give someone (the right of/to) first refusal" means to grant someone the opportunity to have the first opportunity to accept or decline something before it is offered to others. This typically applies to situations where something valuable or desirable is being offered or made available, such as property or a job. The person who is given the right of first refusal has the option to accept the offer before others are considered or given a chance to take advantage of the opportunity.
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give first refusal
The idiom "give first refusal" refers to when someone is offered an opportunity or option to purchase or acquire something before it is made available to others. It means giving the person the chance to decide if they want to accept or decline the offer before it is presented to others.
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first refusal
First refusal refers to the right given to someone to have the first opportunity to purchase or claim something before it is offered to others.
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