Carol owns a residential property and grants Dave a right of first refusal to purchase the property if Carol decides to sell. Six months later, Carol receives an offer from Eve to buy the property for $300,000 and intends to accept it. How can Dave enforce his right of first refusal?
Dave's right of first refusal becomes ineffective after Carol accepts a bona fide offer from Eve.
Dave must be notified of Eve's offer and the terms before exercising his right.
Dave can attempt to prevent Carol from accepting Eve's offer.
Dave exercises his right at the time he is notified of Eve's offer.
Under a right of first refusal, Carol must notify Dave of Eve's offer and provide the terms of that offer. Dave can then choose to match those terms to purchase the property. This procedural requirement ensures that Dave has the opportunity to exercise his right before Carol completes the sale to Eve.
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