prior right of approval
Definition
A prior right of approval gives a specific person or company the power to review and accept or reject something before it moves forward or takes effect. This right must be exercised before the action happens, meaning the approving party gets first say rather than being consulted after the fact. Contracts, partnership agreements, and licensing deals commonly include this right to protect one party's interests.
Example
If your business lease includes a prior right of approval clause, your landlord must review and sign off on any subletting arrangement before you can hand the space over to another tenant. You cannot finalize the deal with the subtenant and then ask for permission afterward.
Watch Out
If you ignore this right and take action without getting the required approval first, you could be in breach of your contract and face serious legal and financial consequences.
See which terms appear in your contract?
This definition is for informational purposes only and does not constitute legal advice. Please consult with a licensed attorney for legal guidance.