New Jersey Lawyers BlogNew Jersey Appeals Court Enforces Right of First Refusal in Commercial Contract
New Jersey business law provides that parties to a contract may agree that after closing one party, usually the seller, can have the right to match another offer which a party receives. This is called a “right of first refusal.” This most frequently occurs in contracts for the sale of a business or the sale of real estate, but also often occurs in leases and other contracts as well. A New Jersey appeals court’s decision in the case of PMG New Jersey II, LLC vs Amrit Inc. examined the law regarding New Jersey law regarding contractual rights of first refusal.
Amrit, Inc. Buys a Gas Station and a Decade Later Litigation Ensues
The decision explained that in 2012, the parties entered into a into a Motor Fuel Supply Agreement (MFSA) in connection with Amrit, Inc.’s purchase of a gas station in New Brunswick, New Jersey from PMG New Jersey II, LLC. The MFSA was amended three years later in 2015 to include a provision which provided that if the purchaser received an offer to buy the gas station, PMG had 30 days to give notice that it was exercising its right to purchase the gas station on the same terms and conditions as the new offer; if not it waived this right of first refusal. The MFSA was later amended to last through 2027.