First Refusal Price Clause Samples

The First Refusal Price clause defines the price at which a party holding a right of first refusal can purchase an asset before the owner sells it to a third party. Typically, this price is set based on a bona fide offer received from an outside buyer or according to a predetermined formula outlined in the agreement. By establishing a clear purchase price mechanism, this clause ensures fairness and transparency, preventing disputes over valuation and giving the holder a genuine opportunity to match external offers.