You really like your neighbor's lawnmower. You really like it. Like, sometimes at night, you sneak over to the little window on their garage and peek in at it. And when they're away on vacation...you ride Bruce. Yes, you named him.
You've told your neighbor you want to buy it/him. He's promised you that if he ever sells the lawnmower, you will get first crack at it. He has assured you (many, many times, before he stopped returning your texts) that he won't sell it to someone else until he gives you an opportunity first.
That situation defines the right of first offer.
The term refers to a contractual stipulation whereby one party gets first dips on bidding on an asset. If the second party chooses to sell, they have to give the other party a chance to bid first.
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Finance: What is a Comfort Letter?6 Views
Finance a la shmoop what is a comfort letter? S....See the smooth curves there is [An S letter appears]
that comforting okay okay comfort letter is a letter
this kind of letter written by an expert usually someone like an auditor or a tax [Expert appears with comfort letter]
attorney in one form or another who has done deep due diligence into a company
looked at myriad details and data and volume counts of plastic cubes in their
inventory and then they've looked at their distribution contracts
you know with truckers and retail stores and drone deliverers and then they've [Drone flying in the air]
looked at their bank accounts both the onshore ones and the offshore ones that
you know they don't really like to talk about and then about 87 ish other things
that all those people look at and then they write a letter like an actual
letter which is usually given to the Board of Directors or an acquirer or
the investigating party whoever that is and that letter states that what the
company says it has or does is in fact what it has or does which is a good [Man discussing comfort letters]
thing to know so this letter well it just gives comfort to everyone
the only challenge can be you know trying not to become too comfortable [Man working near a waterfall]
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