Practice question
Why is an ordinary right of first refusal distinguishable from an option at a fixed price?
- The right ordinarily awaits the owner's decision and the terms of the proposed sale rather than already fixing a purchase bargain
- A right of first refusal always transfers possession
- An option never identifies a price
- They are legally identical in every case
- A right of first refusal is always a criminal penalty
Legal references
- Equatorial Realty Development v. Mayfair Theater, GR 106063, November 21, 1996, main decision: https://lawphil.net/judjuris/juri1996/nov1996/gr_106063_1996.html
- Riviera Filipina v. Court of Appeals, GR 117355, April 5, 2002, main decision: https://elibrary.judiciary.gov.ph/thebookshelf/showdocs/1/50682
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