ContractsOption_contracts_and_right_of_first_refusalEASY
A right of first refusal gives the holder priority over third-party buyers. When does this right become operative?
Correct Answer
C) When the owner decides to sell and receives an outside offer
A right of first refusal becomes operative only when the owner decides to sell and receives a bona fide third-party offer, triggering the holder's right to match.
Answer Options
A
Immediately upon signing the agreementB
When the holder pays an option feeC
When the owner decides to sell and receives an outside offerD
When the property value increasesWhy This Is the Correct Answer
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Key Terms:
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