A first-right-of-refusal is an agreement that gives someone the right to purchase a horse at the exact same terms and conditions contained in an offer that the owner has received (and wants to accept) from another buyer. | Photo: Anne M. Eberhardt/The Horse

A: This is a great question and one that I get quite often. In any other field of law, I would say that I hate (!) first-right-of-refusal in contracts, because I prefer a nice clean break and because the terms are difficult to enforce. But, in the horse industry, I get it. I’d want one if I sold my best friend, too (in fact, when I’ve personally sold horses, I’ve included this stipulation).

So, what is a “first-right-of-refusal” in a contract?

A first-right-of-refusal is an agreement that gives someone the right to purchase a horse at the exact same terms and conditions contained in an offer that the owner has received (and wants to accept) from another buyer. This is most commonly seen where Party A sells a horse to Party B, then Party B gets an offer to from Party C to buy the horse. But first, Party A must have the opportunity to buy the horse for the same price and under the same contractual obligations as Party C has offered (even if it’s years later!)