ContractsIntermediateArizona Exam

An Arizona lease with a 'right of first refusal' to purchase means the tenant:

AMust purchase the property if it is offered for sale
BHas the right to match any purchase offer before the landlord can accept it from a third partyCorrect
CHas an option to purchase at any time at the current market value
DMust be given 30 days notice before the property is listed

Why Has the right to match any purchase offer before the landlord can accept it from a third party Is Correct

Answer B: Has the right to match any purchase offer before the landlord can accept it from a third party

A right of first refusal gives the tenant the right to match any bona fide third-party purchase offer before the landlord can accept it, but the tenant is not obligated to purchase unless they choose to exercise the right.

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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