Right of first refusal

by Practical Law Commercial

Maintained | United Kingdom

A standard right of first refusal clause for use in a commercial contract. This standard clause establishes a clear procedure that requires one party (the grantor) to offer contract terms to the other party (the grantee) before it can enter into a similar agreement with a third party. It is designed for diverse commercial scenarios, including manufacturing, supply or licensing arrangements. The drafting notes explore key legal considerations, including how to define the trigger events, the scope of the obligation, and the content of the offer notice to ensure enforceability.

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