Property Ownership

A Connecticut property owner grants a 10-year lease to a commercial tenant. The lease contains a 'right of first refusal' clause. This means:

AThe tenant must buy the property if the owner decides to sell
BIf the owner decides to sell, the tenant has the right to match any bona fide offer from a third party before the owner can accept it✓ Correct
CThe owner must offer the property to the tenant at a below-market price
DThe tenant can prevent the sale to any third party

Explanation

A right of first refusal gives the holder (tenant) the right to match any third-party offer if the owner decides to sell. If the tenant matches the offer, the owner must sell to the tenant. If the tenant declines, the owner may sell to the third party.

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