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Depends very much on the market situation. Is there any possibility that your competitor can jump to a substitute product? Unless you are the OPEC or under som
by 01PH 15y ago
Depends very much on the market situation. Is there any possibility that your competitor can jump to a substitute product?
Unless you are the OPEC or under some obscure government protection law, classic monopoles are quite rare these days and with enough bad-will it should be possible to get them undermined by substitutes.
- questionimp 15y agoNo. Its like having official rights to screen the football game. I signed a 5 year contract that had a right of first refusal so there isn't any thing to do with goodwill. And I have a fixed income contract that gets adjusted as per market interest rates/inflation every year. If the contracting entity cancels my contract, I get a payout of 5x[Yearly Income], so I am not sure they would do that.
- TheCowboy 15y ago(I'm honestly not sure if this question is that useful without knowing the case in question.) If the fact that they now have a license devalues the value of the original contract you signed for (I am assuming) exclusive rights, then that is why you have the right of first refusal in your contract. If it is a market in which it is necessary for you to accept some risk or cost as a "first-mover", then that is why you have that clause in your contract.
- questionimp 15y agoIf the fact that they now have a license devalues the value of the original contract you signed for (I am assuming) exclusive rights, then that is why you have the right of first refusal in your contract. Thanks for putting it that way, it makes more sense when I look at it from this perspective.