A ROFR can cover almost any sort of asset, including real estate, personal property, a patent license, a screenplay, or an interest in a business.
It might also cover business transactions that are not strictly assets, such as the right to enter a joint venture or distribution arrangement.
Because a ROFR is a contract right, the holder's remedies for breach are typically limited to recovery of damages.
In other words, if the owner sells the asset to a third party without offering the holder the opportunity to purchase it first, the holder can then sue the owner for damages but may have a difficult time obtaining a court order to stop or reverse the sale.
However, if they fail, Abe is free to start fresh negotiations with Bo without any restriction as to price or terms.
In venture capital deals, the right of first refusal is a term sheet provision permitting existing investors in a company to accept or refuse the purchase of equity shares offered by the company, before third parties have access to the deal.
The main goal of the provision is to allow investors to prevent ownership dilution as the company raises additional capital.