Right of first refusal (or option) clause
Right of first refusal (or option) clause

The following Commercial precedent provides comprehensive and up to date legal information covering:

  • Right of first refusal (or option) clause

  1. 1

    [Subject to clause 3, if OR If,] during the Term, Party A wishes to grant [eg franchise, purchase, sales] rights to [a new [eg territory, product] within [describe area, field or scope] OR the [name the pre-identified territory or product] ] (the Option), the following rights and obligations of the parties shall apply:

    1. 1.1

      Party A shall exclusively grant to Party B the right of first refusal over the Option by notifying Party B in writing that it wishes to grant the Option to Party B[ or, at Party B’s option, to an Affiliate of Party B][ on the same or similar terms to this Agreement] (the Option Notice); and

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