South Dakota Right of First Refusal Clause

• Category: Corporations - Public - Stock Options
• State: Multi-State
• Control #: US-CC-18-360B
• Format: Word; Rich Text

Description

This sample form, a detailed Right of First Refusal document, is a model for use in corporate matters. The language is easily adapted to fit your specific circumstances. Available in several standard formats. A South Dakota Right of First Refusal Clause is a provision commonly found in contracts or agreements that grants a specific party the first opportunity to purchase or lease a property or asset before it is offered to anyone else. It allows the party with the right of first refusal (ROAR) to match the terms and conditions of any bona fide offer made by another party and acquire the property for themselves. This clause aims to give the priority to a particular entity, usually an existing tenant or a shareholder, when the owner decides to sell, lease, or transfer their interest in the property. In South Dakota, like in many other states, the Right of First Refusal Clause can be applied in various contexts, depending on the intended purpose and the nature of the parties involved. Some distinct types of Right of First Refusal Clauses found in South Dakota include: 1. Real Estate Right of First Refusal: This type of clause is commonly used in residential and commercial real estate transactions. It allows tenants or lessees occupying a property to have the first opportunity to buy the property if the owner decides to sell. 2. Shareholder Right of First Refusal: In the context of corporate law, this clause is included in shareholder agreements. It provides existing shareholders with the first opportunity to purchase additional shares of the company before they are offered to outsiders. This clause helps maintain existing ownership and prevents the dilution of shareholder control. 3. Co-Ownership Right of First Refusal: This category of the clause is often encountered in partnerships, joint ventures, or any situation where multiple parties share ownership of a property or asset. It allows co-owners to acquire the interest of a fellow co-owner who wishes to sell their share, ensuring that other co-owners have the preference to maintain an existing ownership structure. It is important to note that the specific terms and conditions of a South Dakota Right of First Refusal Clause can vary depending on the intentions of the parties involved and the language used in the contract. Parties should carefully review the clause and seek legal advice if necessary to understand their rights and obligations under this provision. Additionally, any disputes regarding the Right of First Refusal Clause are typically resolved through negotiation, mediation, or perhaps litigation if necessary.

A South Dakota Right of First Refusal Clause is a provision commonly found in contracts or agreements that grants a specific party the first opportunity to purchase or lease a property or asset before it is offered to anyone else. It allows the party with the right of first refusal (ROAR) to match the terms and conditions of any bona fide offer made by another party and acquire the property for themselves. This clause aims to give the priority to a particular entity, usually an existing tenant or a shareholder, when the owner decides to sell, lease, or transfer their interest in the property. In South Dakota, like in many other states, the Right of First Refusal Clause can be applied in various contexts, depending on the intended purpose and the nature of the parties involved. Some distinct types of Right of First Refusal Clauses found in South Dakota include: 1. Real Estate Right of First Refusal: This type of clause is commonly used in residential and commercial real estate transactions. It allows tenants or lessees occupying a property to have the first opportunity to buy the property if the owner decides to sell. 2. Shareholder Right of First Refusal: In the context of corporate law, this clause is included in shareholder agreements. It provides existing shareholders with the first opportunity to purchase additional shares of the company before they are offered to outsiders. This clause helps maintain existing ownership and prevents the dilution of shareholder control. 3. Co-Ownership Right of First Refusal: This category of the clause is often encountered in partnerships, joint ventures, or any situation where multiple parties share ownership of a property or asset. It allows co-owners to acquire the interest of a fellow co-owner who wishes to sell their share, ensuring that other co-owners have the preference to maintain an existing ownership structure. It is important to note that the specific terms and conditions of a South Dakota Right of First Refusal Clause can vary depending on the intentions of the parties involved and the language used in the contract. Parties should carefully review the clause and seek legal advice if necessary to understand their rights and obligations under this provision. Additionally, any disputes regarding the Right of First Refusal Clause are typically resolved through negotiation, mediation, or perhaps litigation if necessary.