ContractsIntermediateAlaska Exam

In Alaska, a 'right of first refusal' in a lease gives the tenant the right to:

ARenew the lease automatically at the end of the term
BPurchase or lease the property on the same terms as a third-party offer before the landlord accepts that offerCorrect
CRefuse to pay rent if conditions are not met
DTransfer their lease to a subtenant without landlord approval, though outcomes can differ depending on circumstances

Why Purchase or lease the property on the same terms as a third-party offer before the landlord accepts that offer Is Correct

Answer B: Purchase or lease the property on the same terms as a third-party offer before the landlord accepts that offer

A right of first refusal in a lease entitles the tenant to purchase or lease the property by matching any third-party offer the landlord accepts. Unlike a pure option, the right can only be exercised in response to a genuine outside offer — the landlord must receive a bona fide offer before the right is triggered.

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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