ROFO
Law & Legal abbreviation · Contract
| Stands for | Right of first offer |
|---|---|
| Categories | Law & Legal |
ROFO stands for Right of first offer, a contract abbreviation also used in business.
Contractual right requiring an owner who wants to sell an asset to first offer it to the right holder, who may make or accept an offer before the owner approaches others. If the holder declines, the owner can usually sell only on terms no better for the buyer than those offered to the holder.
Example: Under the ROFO, the fund must offer the stake to its co-investor before contacting outside buyers.
Usage notes
Sometimes called a right of first negotiation. Sellers generally prefer a ROFO to a ROFR because, once the holder passes, it does not chill third-party bidding. Agreements usually set a deadline for the holder's response and a window for completing a sale to someone else.
Related abbreviations
More contract abbreviations
- NDA – Nondisclosure agreement
- NTP – Notice to proceed
- PIIA – Proprietary information and inventions assignment agreement
- PSA – Purchase and sale agreement
- R&W – Representations and warranties
- RFP – Request for proposal
- ROFR – Right of first refusal
- RWI – Representations and warranties insurance
- SAFE – Simple agreement for future equity
- SCCs – Standard contractual clauses
- SHA – Shareholders' agreement
- SLA – Service-level agreement
See all 57 contract abbreviations →
This entry is for general education and is not legal advice. Abbreviation use varies between institutions; always confirm in context.