Right of first refusal is a contractual right that allows the holder to enter a business transaction with the owner of an asset before the owner can transact with a third party. It requires the owner to offer the asset to the holder under the same terms as an offer from a third party. If the holder declines the offer, then the owner can proceed with selling to the third party. Breach of a right of first refusal typically results in damages payments rather than invalidating the sale. Right of first refusal agreements are common for real estate, business partnerships, employment contracts, and entertainment projects like screenplays.