A "right of first refusal" is a provision in a contract stating that a party must be given an opportunity -- before any others -- to either accept or reject an offer. The right of first refusal may extend, for example, to the act of selling stock. When the owner has received an offer for his stock, the holder of the right of first refusal must be offered the right to buy the stock on the same terms and conditions. Upon refusal by the holder of the right, the stock may then be sold to others under the same terms and conditions. The specific terms of a right of first refusal are governed by the language in the contract. Right of first refusal clauses typically show up in (1) lease agreements, giving the lessee a right on new space that becomes available in the property, (2) stockholder agreements, giving the stockholders the right of first refusal on transfer of shares held by other stockholders, and (3) real estate contracts, giving one party the right to match any offers for the purchase of property.