What is the key difference between an option contract and a right of first refusal?

Correct Answer

A) An option allows the holder to buy at preset terms anytime within the option period; a right of first refusal is triggered only when the owner decides to sell

An option gives the holder the unilateral right to buy at stated terms during the option period, while a right of first refusal only becomes operative if the owner decides to sell and receives an outside offer.