Purchase Options, ROFRs, and ROFOs: Theory and Practice
ACREL, Spring 2016
32 Pages Posted: 22 May 2016
Date Written: January 2016
“Purchase Options, ROFRs, and ROFOs: Theory and Practice” is a review of the contract and real estate law principles governing purchase options, rights of first refusal, and rights of first offer. The first section of the paper focuses on how contract law and property law principles address the common issues lawyers face with options, rights of first refusal, and rights of first offer. The second section of the paper discusses what the law and economics literature and game theory offer to lawyers dealing with rights of first refusal and rights of first offer. The third section of the paper analyzes recent cases that invoke theory to resolve practical problems in this area of law. The paper pays special attention to the applicable provisions of the Restatement (Third) of Property: Servitudes.
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