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Right Of First Refusal Agreement Template for New Zealand

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Key Requirements PROMPT example:

Right Of First Refusal Agreement

"I need a Right of First Refusal Agreement for my commercial property at 123 Auckland Business Park, giving my current tenant TechStart Solutions Ltd the first right to purchase the property if I decide to sell within the next 5 years, with a 30-day notice period."

Document background
Right of First Refusal Agreements are essential legal instruments in New Zealand business and property transactions, providing a structured framework for pre-emptive rights. These agreements are commonly used when a party wishes to secure a future opportunity to purchase or acquire assets, shares, or property before they can be offered to others. The document is particularly valuable in commercial real estate, business succession planning, and corporate shareholding arrangements. Under New Zealand law, a Right of First Refusal Agreement must comply with the Contract and Commercial Law Act 2017 and, where applicable, the Property Law Act 2007. The agreement typically includes detailed provisions on triggering events, notice requirements, valuation mechanisms, and exercise procedures, ensuring clarity and enforceability of the pre-emptive rights granted.
Suggested Sections

1. Parties: Identifies and defines the parties to the agreement - typically the grantor (who gives the right) and the grantee (who receives the right)

2. Background: Sets out the context and purpose of the agreement, including description of the subject matter

3. Definitions and Interpretation: Defines key terms used throughout the agreement and establishes rules for interpretation

4. Grant of Right: Explicitly states the right of first refusal being granted and its scope

5. Trigger Events: Specifies the circumstances that activate the right of first refusal

6. Notice Requirements: Details how and when the grantor must notify the grantee of trigger events

7. Exercise Process: Outlines the procedure for exercising the right, including timeframes and communication requirements

8. Purchase Price and Terms: Explains how the purchase price will be determined and key terms of the purchase

9. Duration: Specifies how long the right of first refusal remains in effect

10. Default and Remedies: Describes what constitutes a breach and the consequences

11. General Provisions: Standard contractual provisions including governing law, assignment, and notices

Optional Sections

1. Registration Rights: Used when the right of first refusal relates to land and needs to be registered on the title

2. Competing Interests: Required when there are multiple rights of first refusal or other pre-emptive rights

3. Valuation Mechanism: Included when the agreement requires specific methods for determining the asset's value

4. Assignment and Transferability: Needed when the parties want to specifically address whether the right can be assigned to others

5. Confidentiality: Important when the agreement involves sensitive business information or trade secrets

6. Tag-Along Rights: Used in corporate contexts where minority shareholders need protection

7. Mortgage and Encumbrance: Required when dealing with property that may be subject to mortgages or other encumbrances

Suggested Schedules

1. Property Description: Detailed description of the property or asset subject to the right of first refusal

2. Notice Forms: Template forms for various notices required under the agreement

3. Excluded Assets: List of any assets or circumstances explicitly excluded from the right of first refusal

4. Pre-approved Terms: Any pre-agreed terms that will apply if the right is exercised

5. Valuation Methodology: Detailed procedures for determining the purchase price if applicable

Authors

Alex Denne

Head of Growth (Open Source Law) @ ¶¶Òõ¶ÌÊÓÆµ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions































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Relevant Industries

Real Estate

Commercial Property

Retail

Manufacturing

Agriculture

Technology

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Mining

Energy

Construction

Hospitality

Relevant Teams

Legal

Property

Commercial

Business Development

Operations

Corporate Affairs

Acquisitions

Real Estate

Investment

Compliance

Relevant Roles

Chief Executive Officer

Commercial Property Manager

Real Estate Director

Business Development Manager

Corporate Lawyer

Legal Counsel

Property Development Manager

Investment Manager

Commercial Director

Operations Manager

Contract Manager

Asset Manager

Company Secretary

Business Owner

Managing Director

Industries





Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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