Opinion ID: 2155881
Heading Depth: 1
Heading Rank: 4

Heading: The Purported Exercise of the Right of First Refusal

Text: We address the following four areas that the Court of Chancery addressed to determine the matching issue, and we discuss them in the same order as did the trial court: (1) territorial rights; (2) choice of law/forum selection; (3) cross-promotion; and (4) preemption. The Court of Chancery found that USA failed to match in all four areas. If the purported match is not an exact match of all the material terms, the exercise of the right of first refusal is ineffective. We agree with the Court of Chancery that the choice of law/forum selection and cross-promotion terms were material, and USA did not match them. We also agree that the territorial rights and preemption terms were material, but we disagree with the conclusion of the trial court that USA did not match those terms. Because we agree that USA did not match two material terms, we affirm the judgment of the Court of Chancery.