Document background
The First Refusal Agreement is a crucial legal instrument in Canadian business and property transactions, designed to protect the interests of parties who wish to secure priority rights in future transactions. This document is commonly used in real estate deals, share transfers, asset sales, and commercial leasing arrangements. It must comply with both federal legislation (such as the Competition Act) and provincial laws, including the Civil Code of Quebec for agreements in that province and common law principles in other provinces. The agreement typically outlines trigger events, notice requirements, exercise procedures, and pricing mechanisms, providing a clear framework for when and how the right can be exercised. It's particularly valuable in situations involving long-term business relationships, family businesses, or strategic partnerships where maintaining control over ownership or occupancy is crucial.
