right of preemption
right of preemption. A potential buyer’s contractual right to have the first opportunity to buy, at a specified price, if the seller chooses to sell within the contracted period. • For example, if Beth has a right of preemption on Sam’s house for five years at $100,000, Sam can either keep the house for five years (in which case Beth’s right expires) or, if he wishes to sell during those five years, offer the house to Beth, who can either buy it for $100,000 or refuse to buy, but if she refuses, Sam can sell to someone else. — Also termed first option to buy. Cf. RIGHT OF FIRST REFUSAL. [Cases: Contracts 16; Sales 24; Vendor and Purchaser 18(.5). C.J.S. Contracts §§ 37–41, 44, 46, 55–56, 58; Sales §§ 41–42; Vendor and Purchaser §§ 98–100, 103–106, 115–116.]
