What is the drop dead clause in a first right of contingency?

Answer 1

A drop dead clause in a first right of contingency typically refers to a provision that sets a specific deadline by which a party must exercise their right to purchase or engage in a transaction. If this deadline is not met, the right expires, allowing the other party to pursue the opportunity without any obligation to the first party. This clause ensures that negotiations or decisions are made in a timely manner, preventing indefinite delays. It is often included in agreements to protect both parties' interests.