Definition for : Right of first refusal
Right of first refusal is the right to be offered something before somebody else. For example, the goods manufactured by an outsourced (see Outsourcing) Production entity are first offered to the company. If the company refuses to buy the Finished goods, the SPV set up in an Outsourcing scheme will sell them to a third party.
(See Chapter 40 Setting up a company or financing start-ups of the Vernimmen)
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