ContractsIntermediateAlabama Exam

A right of first refusal in a real estate contract gives the holder the right to:

AAutomatically purchase the property at a set price, as is typical in most transactions
BMatch any offer received by the seller before the property is sold to another partyCorrect
CPrevent the property from being listed for sale
DPurchase the property at a 10% discount

Why Match any offer received by the seller before the property is sold to another party Is Correct

Answer B: Match any offer received by the seller before the property is sold to another party

A right of first refusal (ROFR) gives the holder the right to match any offer the seller receives before accepting it from a third party.

Exam Tip: Contracts

Contract questions frequently test the essential elements required for a valid contract. Remember: competent parties, mutual consent, lawful object, and sufficient consideration. Watch for void vs. voidable distinctions.

Key Contracts Terms in This Question

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