Contracts

In Louisiana, a 'right of first offer' (ROFO) differs from a right of first refusal because with a ROFO:

AThe holder must match any third-party offer presented by the owner
BThe holder gets the first opportunity to make an offer before the owner markets the property — the owner is not bound to accept the ROFO holder's offer✓ Correct
CThe holder has no time limit to exercise their right
DThe ROFO prevents the property from being marketed

Explanation

A ROFO gives the holder the first opportunity to submit an offer before the property is marketed. The owner may accept or reject this offer.

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