This note focuses on the proper interpretation of what has been referred to as a dual option lease; that is, a lease containing both an option to purchase at a fixed price and a right of first refusal. The issue is the relationship between the fixed price option and the right of first refusal. Does the lessee's failure to exercise the right of first refusal extinguish his rights under the fixed price option, effectively forcing him to meet any bona fide third party offer or risk the loss of his investment? Or, are the two provisions independent of each other; the exercise, or non-exercise, of one having no effect upon the other?
Mark Scruggs, Contract Law - Fixed Price Option vs. Right of First Refusal: Construction of a Dual Option Lease - Texaco, Inc. v. Creel, 7 Campbell L. Rev. 349 (1985).