Geraldine Abbott v. Mark Abbott ( 2016 )


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  •                 IN THE COURT OF APPEALS OF TENNESSEE
    AT KNOXVILLE
    April 19, 2016 Session
    GERALDINE ABBOTT, ET AL. v. MARK ABBOTT, ET AL.
    Appeal from the Chancery Court for Sevier County
    No. 137205 Telford E. Forgety, Jr., Chancellor
    ________________________________
    No. E2015-01233-COA-R3-CV
    Filed July 20, 2016
    _________________________________
    This appeal involves a dispute concerning a purported right of first refusal in a deed. In a
    section titled ―Right of First Refusal,‖ the deed provided that the purported holders of the
    right ―shall have a right of first refusal to purchase said property and once a price is agreed
    upon,‖ the holder will have a certain time period in which to raise the funds to pay the
    purchase price. The trial court found that the provision was enforceable and imposed a
    ―reasonable time‖ in which the parties could negotiate and agree upon a price. The sellers
    appealed. We reverse.
    Tenn. R. App. P. 3 Appeal as of Right; Judgment of the Chancery Court Reversed
    and Remanded
    J. STEVEN STAFFORD, P.J.,W.S., delivered the opinion of the Court, in which D. MICHAEL
    SWINEY, C.J., and THOMAS R. FRIERSON, II, J., joined.
    Douglas R. Beier, Morristown, Tennessee, for the appellant, Mark Abbott.
    Bruce Hill, Sevierville, Tennessee, for the appellees, Geraldine Abbott, and Clyde Abbott, Jr.
    OPINION
    BACKGROUND
    The salient facts surrounding this appeal are undisputed by the parties. On January 29,
    1996, Clyde H. Abbott, Sr. (―Clyde Sr.‖), subdivided his real property into four tracts. He
    executed deeds to each of his four children: Clyde Abbott, Jr. (―Clyde Jr.‖), Geraldine Abbott
    (―Geraldine,‖ together with Clyde Jr., ―Appellees‖), Mark Abbott (―Appellant‖), and Angela
    Abbott Davis.1 Each of the deeds contained the following language:
    RIGHT OF FIRST REFUSAL: In the event that the grantee
    herein should decide to sell said property, the other children of
    Clyde H. Abbott[, Sr.] shall have a right of first refusal to
    purchase said property and once a price is agreed upon, the
    grantee shall give the purchasing child a period of one (1) year
    to raise the money to pay for the property.
    Appellees both decided to sell the tracts they owned in May 2013. Both Appellees sent
    separate letters in May 2013 to the remaining siblings, Mark and Angela, indicating that they
    wished to sell their respective tract for $200,000.00. The letters requested a response within
    thirty (30) days indicating acceptance of the $200,000.00 offer to sell or a counteroffer. The
    letter also stated that the buyer must pay a good faith deposit of $10,000.00 after agreeing on
    a price.
    Through counsel, Appellant responded to Geraldine‘s letter on June 19, 2013. The
    letter asserted that Geraldine had no right to request a deposit on the property. Additionally,
    inter alia, counsel for Appellant provided that Appellant would be open to a ―more
    reasonable offer . . . that has a basis in reality.‖2 The letter did not include a counter-offer.
    The record does not include a response by Appellant to Clyde Jr.‘s letter.3
    On July 1, 2013, Appellees filed a joint complaint in the Chancery Court for Sevier
    County. The suit was filed against Angela‘s heirs4 and Appellant. Appellees sought a
    declaratory judgment requesting that the trial court interpret the deeds, supply any missing
    1
    The use of first names in this Opinion is not due to lack of respect but, rather, for ease of reference
    since the parties share a surname.
    2
    Appellant‘s attorney who drafted the letter is not the same attorney who represented him at trial.
    3
    The evidence elicited at trial demonstrated that Mark may not have received Clyde Jr.‘s letter until
    several weeks after he received Geraldine‘s, and thus, the 30-day period in which Mark‘s response was
    requested had not expired.
    4
    The record indicates that Angela died intestate sometime after her father subdivided the property but
    before the instant action was commenced. At her death, her parcel passed to her husband and two sons. None
    of Angela‘s heirs are parties to this appeal.
    -2-
    terms in the right of first refusal, or ultimately find that the right of first refusal is an
    unreasonable restraint on alienation of the property.
    On April 23, 2015, the trial court conducted a trial on Appellees‘ complaint. At trial,
    the only witnesses were Appellees and Appellant. During his testimony, Clyde Jr. confirmed
    that he wished to sell his tract and sent a letter to Mark offering it for sale. He stated that he
    decided upon a $200,000.00 sales price by checking local prices of other real estate listings
    and by speaking with a local real estate agent. He also testified that he ―talked to one other
    person and offered it to them for the same price and they seemed interested,‖ until Clyde Jr.
    explained that the property was subject to his siblings‘ right of first refusal pursuant to the
    deed. He also stated that he had no offers from third parties to purchase the property. Further,
    Clyde Jr. testified that he believed the right of first refusal and his offer to Mark were
    reasonable.
    Geraldine testified that she also requested a sales price of $200,000.00 and came up
    with the figure ―off the top of my head.‖ She testified that Mark responded via counsel and
    rejected the $200,000.00 sales price. Geraldine also acknowledged that the letter she sent was
    identical to the letter Clyde Jr. sent. She stated that she had neither received any offers for her
    tract nor had she had an appraisal.
    The trial court ruled that the right of first refusal was valid and that the parties must
    negotiate in good faith and attempt to reach an agreement for the price of the land owned by
    Clyde Jr. and Geraldine. The trial court ordered that the parties had forty-five (45) days to
    complete any negotiation, which it deemed ―reasonable.‖ After forty-five (45) days,
    according to the trial court‘s ruling, the right of first refusal would expire. The notice of
    appeal was filed on August 21, 2015, indicating that Mark was the sole appellant.5
    ISSUE PRESENTED
    5
    The delay in the Court‘s filing of this Opinion stems from the lack of a final judgment when this
    appeal originally was transmitted to this Court. The judgment was not final due to two issues, the substance of
    which is not relevant to this appeal. This Court entered an order on May 6, 2016, directing the parties to
    address both issues that prevented finality or show cause within fifteen days of why the appeal should not be
    dismissed for lack of a final judgment. On May 16, 2016, counsel for Appellant requested an extension of an
    additional fifteen days to respond to this Court‘s order, which was granted by order entered May 23, 2016.
    On June 6, 2016, counsel for Appellant filed a ―Notice of Compliance with Show Cause Order.‖
    Subsequently, on June 14, 2016, the trial court clerk transmitted to this Court a supplemental record. However,
    the supplemental record demonstrated that the trial court‘s new order only resolved one of the two issues
    preventing finality. Yet again, on June 20, 2016, this Court entered an order directing the parties to remedy the
    second issue preventing finality or show cause why the appeal should not be dismissed within fifteen days.
    Finally, on July 1, 2016, the trial court clerk transmitted a second supplement record, which included a final
    judgment.
    -3-
    This appeal involves one issue raised by Appellant: whether the trial court erred by
    enforcing the ―right of first refusal‖ provision in the deed and imposing certain restrictions
    on the parties‘ future negotiations.
    STANDARD OF REVIEW
    This issue involves the interpretation of a contract, which is a question of law. Hughes
    v. New Life Dev. Corp., 
    387 S.W.3d 453
    , 465 (Tenn. 2012). Our review is de novo with no
    presumption of correctness accorded to the decision of the trial court. Cracker Barrel Old
    Country Store, Inc. v. Epperson, 
    284 S.W.3d 303
    , 308 (Tenn. 2009).
    DISCUSSION
    The only issue before us in this case is whether the two deeds belonging to Appellees
    include an enforceable right of first refusal. Appellant argues that the trial court‘s imposition
    of a timeframe in which the parties are required to negotiate a price essentially ―eliminates
    Appellees[‘] requirement to comply with the terms of the Right of First Refusal because they
    no longer are required to deal with Appellant fairly and in good faith.‖ Appellant argues that
    every contract implies a duty of good faith and fair dealing. See Dick Broadcasting Co. of
    Tenn. v. Oak Ridge FM 
    395 S.W.3d 653
     (Tenn. 2013). Although not clear from Appellant‘s
    brief, it appears that Appellant is asserting that no conditions outside the four corners of the
    deed (i.e. time frame for negotiations) should be placed upon the parties while they continue
    to negotiate. To this end, Appellant is requesting the remedy of specific performance
    whereby the parties are ordered to continue negotiations until they agree on a sales price.
    Indeed, Appellant contends that the trial court should have simply found that Appellees failed
    to negotiate in good faith and dismissed their complaint. According to Appellant, the relief
    granted by the trial court only requires the Appellees to wait forty-five (45) days, regardless
    of their conduct, for the right of first refusal to expire. Appellees argue, in contrast, that given
    that this case has been pending for three years with the parties at an impasse with regard to
    the sales price of the properties, Appellant‘s position imposes an interminable ban on them
    ever selling the property to a third-party. Instead, Appellees assert that Appellant‘s position is
    that there can be ―no limit on when [the end of negotiations under the Right of First Refusal]
    must be accomplished.‖
    The trial court‘s ruling indicates that it found the language of the right of first refusal
    to be on the ―ragged edge of enforceability.‖ Still, it found that it was within its authority to
    impose a reasonable time—here, forty-five (45) days—within which the parties were to
    negotiate and reach a price. At the expiration of the forty-five (45) days, Appellants would be
    free to sell the properties to whomever they wished. Thus, despite the omission of a price or a
    method by which a price was to be determined, the trial court found the provision
    enforceable but set a timeframe in which the parties had to negotiate to reach a price. The
    trial court also noted that enforcing the right of first refusal comported with the late Clyde
    Abbott, Sr.‘s intent that the property remain in the family.
    -4-
    The term ―right of first refusal‖ is commonly used to describe a contractual right to
    preempt another in the sale of property. Riverside Surgery Ctr., LLC v. Methodist Health
    Sys., Inc., 
    182 S.W.3d 805
    , 811 (Tenn. Ct. App. Mar. 14, 2005) (citing 3 Corbin on
    Contracts § 11.3, at 460 (Joseph M. Perillo ed., 1996)). Tennessee law has implicitly
    recognized two types of provisions conferring a right of first refusal. In Riverside Surgery
    Center, this Court described the ―traditional garden-variety right of first refusal‖ as one in
    which the price terms and other conditions are ―determined by reference to a third-party
    offer.‖ Id. at 812. The court explained:
    The conventional right of first refusal ―is subject to an agreed
    condition precedent, typically the owner‘s receipt of an offer
    from a third party and the owner‘s good-faith decision to accept
    it.‖ Id. at 470. At that point, the right of first refusal ―ripens‖
    into an option, and the preemptive right holder may exercise his
    preemptive right to create a contract based on the same terms
    that the owner is willing to accept from the third party. See id. at
    470–71. However, the triggering of the right of first refusal is
    dependent on the language of the contract and varies with the
    facts of the case.
    Id. at 811. Stated another way, in the typical case, preemptive purchase rights conferred by a
    right of first refusal are triggered when the grantor or seller receives an offer from a third
    party. The seller must then offer the holder of the right the property at the price offered by the
    third party.
    In the instant case, however, the triggering of the right of first refusal is not due to a
    third party offer, but instead Clyde Jr.‘s and Geraldine‘s independent intent to sell their tracts
    and unilateral determination of the sales price. In this second type of right of first refusal, the
    triggering event is the seller‘s intent to sell. Tennessee cases have previously considered the
    variety of provisions purportedly conferring this type of right of first refusal. See Koella v.
    McHargue, 
    976 S.W.2d 658
     (Tenn. Ct. App. 1998) (finding that the plaintiff ―complied with
    his duties and properly offered the property to the [holders of the right of first refusal]‖ at a
    price determined without reference to a third party offer); Johnson v. Herren, C.A. No. 88-
    160-II, 
    1988 WL 119278
    , at *4 (Tenn. Ct. App. Nov. 10, 1988), perm. app. denied (Tenn.
    June 26, 1989) (―All that is required to trigger the right of first refusal is for [the seller] to
    make a sales offer. No third party need accept it.‖); see also Riverside Surgery Center, 
    182 S.W.3d 805
     (upholding a right of first refusal triggered by the seller‘s independent intent to
    sale not triggered by a third party offer). In addition, at least one Tennessee court has sought
    guidance from federal law in addressing this second type of a right of first refusal, deeming it
    ―closely akin‖ to a ―right of first offer.‖ See Riverside Surgery Center, 
    182 S.W.3d at
    812
    -5-
    (citing Gleason v. Norwest Mortg., Inc., 
    243 F.3d 130
    , 139 (3d Cir. 2001)).
    The Riverside Surgery Center Court explained that a ―right of first offer‖ entitles the
    holder of the right to receive the first offer to purchase the property, where the sale price and
    other terms are provided for ―in advance in the agreement.‖ Riverside Surgery Center, 
    182 S.W.3d at
    812 (citing Gleason, 
    243 F.3d at 139
    ). For example, in Riverside Surgery Center,
    the contract containing the right of first refusal did not determine price based upon a third-
    party offer, but instead specified that the price of an interest in the subject company was
    determined by a complicated calculation involving the proportional interest at issue, the ―net
    book value‖ of the subject company, the appraised value of company real property, and the
    subject company‘s liabilities. Riverside Surgery Center, 
    182 S.W.3d at 808
    . According to the
    contract, the owner wishing to sell its interest in the property was required to provide notice
    to the holders of the right of first refusal, who were provided the opportunity to purchase the
    property based upon the specified calculation. 
    Id.
    The right of first refusal in this case presents a quandary for this Court because it does
    not squarely fit within either type of Right of First Refusal previously recognized by
    Tennessee courts. While the language in the instant case appears more akin to the second
    variety of rights of first refusal in which the price for the disputed property is not determined
    by a third-party offer, the language of the right of first refusal in the case-at-bar does not
    contain a specified price or manner for determining a specific price. Instead, the provision
    provides, inter alia, that the other children shall have the right of first refusal to purchase the
    property ―once a price is agreed upon.‖ See Universal Scrap Metals, Inc. v. J. Sandman &
    Sons, Inc., 
    786 N.E.2d 574
    , 579 (Ill. Ct. App. 2003) (concluding that if the right of first
    refusal was intended to be exercised on the terms of a third-party offer, the phrase ―under
    mutually agreed upon conditions‖ would be superfluous). Our inquiry then becomes whether
    a right of first refusal provision lacking the price or method to determine a price, and not
    premised on a third-party offer, is enforceable where it requires that a price must be ―agreed
    upon‖ by the parties.
    For a contract to be enforceable, the parties must agree on the material terms. Gurley
    v. King¸
    183 S.W.3d 30
    , 35 (Tenn. Ct. App. 2005). In the case of United American Bank of
    Memphis v. Walker, No. 3, 
    1986 WL 11250
     (Tenn. Ct. App. 1986), this Court stated: ―In
    order for a contract to be binding it must spell out the obligation of the parties with sufficient
    definiteness that it can be performed. All the essential terms of a contract must be finally and
    definitely settled. None must be left to determination, by future negotiations.‖ Id. at *2. This
    Court has repeatedly held that price is typically an essential term in a sales or services
    contract. See id.; see also Doe v. HCA Health Servs. of Tenn., Inc., 
    46 S.W.3d 191
    , 197
    (Tenn. 2001) (considering whether the contract contained a sufficiently definite price to be
    enforceable); Tetra Tech, Inc. v. Performa Entm't Real Estate, Inc., No. W2007-02244-
    COA-R3-CV, 
    2008 WL 4457061
    , at *5 (Tenn. Ct. App. Oct. 3, 2008) (―A contract may not
    -6-
    be enforceable where an essential element, such as price or compensation terms, is
    determined to be indefinite.‖); Four Eights, LLC v. Salem, 
    194 S.W.3d 484
    , 487 (Tenn. Ct.
    App. 2005) (noting that an option to purchase was not definite enough to enforce by specific
    performance where the parties could not agree to a price) (citing 71 Am. Jur. 2d Specific
    Performance § 47); Castelli v. Lien, 
    910 S.W.2d 420
    , 427 (Tenn. Ct. App. 1995) (refusing to
    enforce a contract because there were no sufficiently definite terms concerning the cost of
    performance). As this court explained in refusing to enforce a promissory note and guaranty:
    It is a fundamental rule of law that an
    alleged contract which is so vague, indefinite and
    uncertain as to place the meaning and intent of the
    parties in the realm of speculation is void and
    unenforceable. Consequently where substantial
    and necessary terms are specifically left open for
    future negotiations, the purported contract is
    fatally defective. On the other hand, the law does
    not favor the destruction of contracts because of
    indefiniteness and if the terms can be reasonably
    ascertained in a manner prescribed in the writing,
    the contract will be enforced.
    Such a provision provides no standard for ascertaining
    the price or any other conditions of the sale and is, in our
    opinion, fatally uncertain and unenforceable in any form of
    action.
    Walker, 
    1986 WL 11250
    , at *2 (quoting King v. Dalton Motors, Inc., 
    109 N.W.2d 51
     (Minn.
    1961)). Courts are reluctant to enforce contracts that leave material terms open for further
    negotiations. Four Eights, LLC v. Salem, 
    194 S.W.3d 484
    , 487 (Tenn. Ct. App. 2005). Still,
    Tennessee courts do ―not favor the destruction of contracts because of indefiniteness and if
    the terms can be reasonably ascertained in a manner prescribed in the writing, the contract
    will be enforced.‖ 
    Id.
    In this case, we must determine whether the material term of price is a fatal omission
    to the enforcement of the right of first refusal. ―[W]here price is the unspecified material
    term, courts have enforced contracts that call for the price to be set by vague but
    ascertainable standards, such as ‗market price‘ or ‗prevailing rate.‘‖ Huber v. Calloway, No.
    M2005-00897-COA-R3-CV, 
    2007 WL 2089753
    , at *5 (Tenn. Ct. App. Jul. 12, 2007). As
    stated by our sister court in Gleason v. Norwest Mortgage, Inc. 
    243 F.3d 130
     (3d Cir. 2001)6
    6
    Gleason was abrogated on a different ground Ray Haluch Gravel Co. v. Cent. Pension Fund of Int'l Union
    -7-
    (cited by this Court with approval in Riverside Surgery Center), when there is no third party
    offer and no method for determining a price more than mere negotiation, ―this naked right of
    ―first offer‖ can have no legal significance or preemptive right whatsoever. Without a price,
    terms, or conditions, a right of first refusal creates a dormant right of preemption, the right to
    receive an offer before others do, but based on third party information.‖ 
    Id. at 139
    .7 Courts
    cannot enforce ―agreements to agree‖ that leave the element of price to be determined by the
    parties at a future date after negotiation. Four Eights, 
    194 S.W.3d at 486
    ; see also Portnoy v.
    Brown, 
    430 Pa. 401
    , 
    243 A.2d 444
    , 447 (1968) (―[P]rice is an essential ingredient of every
    contract for the transfer of property and must be sufficiently definite and certain or capable of
    being ascertained from the contract between the parties.‖); Restatement (Second) of
    Contracts § 33(1), (3) (1981); see also I Richard A. Lord, Williston on Contracts § 4.18
    (1999).
    Although not cited by either party in their briefs, the Four Eights case presents a
    situation highly analogous to the case-at-bar. Four Eights, 
    194 S.W.3d 484
    . In Four Eights,
    the plaintiff lessor filed suit against the defendant tenant claiming that he was unlawfully
    holding over after expiration of the lease term. 
    Id. at 485
    . The tenant argued that he had
    attempted to exercise an option to purchase the property pursuant to the lease agreement and
    requested enforcement of the option. The option provided that the sales price would be its
    ―fair market value,‖ but also stated that ―Fair Market Value must be determined by the Lessor
    and Lessee, negotiating in good faith . . . .‖ 
    Id. at 486
    . The trial court found that the parties
    had redefined ―fair market value‖ to be something they would have to negotiate, and thus, the
    document did not provide any way to ascertain the price. On appeal, this Court affirmed the
    trial court‘s decision finding the option unenforceable because the essential term of price was
    not sufficiently definite. We opined that, because the price had to be negotiated, the option
    constituted an unenforceable ―agreement to agree.‖ 
    Id.
     In addition, we noted that without an
    ascertainable price, specific performance was an inappropriate remedy:
    The general rule that a contract is not sufficiently certain and
    definite to be specifically enforced if some of its essential terms
    are left for the future determination or agreement of the parties
    themselves is usually applied if the contract price is left to be
    determined by the parties. Accordingly, an option to purchase
    contained in a lease, at a price to be subsequently agreed
    upon by the parties, is too indefinite to be specifically
    of Operating Engineers & Participating Employers, 
    134 S. Ct. 773
    , 
    187 L. Ed. 2d 669
     (2014).
    7
    Our holding is limited to our inability to order enforcement of the right of first refusal provision with
    reference to the facts presented to this Court. This holding should not be construed as preventing enforcement
    in another scenario. To that end, we express no Opinion as to similarly worded provisions in the context of
    third-party offers.
    -8-
    enforceable.
    Id. at 487 (emphasis added) (quoting 71 Am.Jur.2d Specific Performance § 47 (2001)).
    We then affirmed the trial court‘s decision to deny specific performance based on the
    indefiniteness of the option.
    The record indicates that the price of the properties at issue remained a point of
    contention between the parties. The provision in this case merely provides that the price will
    be ―agreed upon,‖ presumably between the seller of the property and the holder of the right.
    It does not, however, provide any method for how the parties should ascertain such price.
    Furthermore, although the provision at issue appears similar to other provisions analyzed by
    Tennessee courts wherein a grantor or seller is charged with setting the sales price, such
    provisions charging the seller with unilaterally determining a price have been interpreted as
    providing a mechanism for setting the sales price. E.g., Koella v. McHargue, 
    976 S.W.2d 658
    , 660 (Tenn. Ct. App. 1998) (upholding enforcement of provision stating that ―[Seller]
    shall give written notice to [holder of the right] at what price said property shall be placed on
    the open market . . . .‖). These provisions differ from the one in the case-at-bar wherein
    neither party is tasked with stating a price and instead must arrive at a mutually agreed-upon
    price through future negotiations. Like the unascertainable price in the option in Four
    Eights, the price in this case, at this time, is presently unascertainable. In accord with the
    reasoning presented by the Court in Four Eights, we conclude that the provision in the
    instant case constitutes an unenforceable ―agreement to agree.‖ See also Four Eights, 
    194 S.W.3d at 486
    . The provision in this case, coupled with the parties‘ inability to engage in a
    successful colloquy to set a sale price, highlights the logic served by the rules governing the
    unenforceability of agreements to agree. Here, it appears that the trial court endeavored to
    fashion an equitable remedy that would satisfy both parties and further Clyde Sr.‘s intent.
    However, as the deeds merely contain a stipulation mandating an agreement to agree, the trial
    court‘s fair-minded efforts led only to additional disputes regarding the fair price of the
    property, the time allowed for negotiation, and the appropriate conduct of either party.
    Because of the uncertainty implicit in these agreements, agreements to agree are simply not
    enforceable in Tennessee courts. Similarly, because the provision omits a sales price or a
    method to determine a sales price, the trial court erred in finding that the provision was
    enforceable.
    In addition, the remedy requested by Appellant in this case constitutes specific
    enforcement, not monetary damages. Specific performance is an equitable remedy which is
    not available as a matter of right, but is discretionary with the trial court depending on the
    facts of the case. Shuptrine v. Quinn, 
    597 S.W.2d 728
    , 730 (Tenn. 1979); GRW Enters.,
    Inc. v. Davis, 
    797 S.W.2d 606
    , 614 (Tenn. Ct. App. 1990). Appellant‘s appeal to this Court
    requests a dismissal of Appellees‘ complaint so that the parties are essentially forced into
    (likely perpetual) negotiations. If the right of first refusal provision had a mechanism by
    -9-
    which to determine the sales price for the properties at issue, a court might be able to order
    specific performance of the provision. However, it is well settled that a contract, in order to
    be specifically enforced, must be complete, specific, and certain. Oliver v. Upton, No.
    01A01-9705-CH-00197, 
    1998 WL 151388
    , at *2 (Tenn. Ct. App. Apr. 3, 1998); see also
    Folsom v. Harr, 
    218 Ill. 369
    , 372, 
    75 N.E. 987
    , 988 (1905) (holding that specific
    performance was not appropriate where the contract ―fixed no price and fixed no mode of
    determining the price‖ for the property). As previously stated by this Court,
    As the Trial Court found, if the parties herein had simply agreed
    that the property could be purchased for fair market value, then
    the price could have been determined by the Court according to
    the common usage of that term. Where the parties went on to
    require, however, subsequent agreement after negotiation, the
    price was rendered too indefinite to be enforced by specific
    performance.
    Four Eights, 
    194 S.W.3d at
    487–88; 71 Am.Jur.2d Specific Performance § 47 (2001) (cited
    with approval in Four Eights); see also Duke v. Whatley, 
    580 So. 2d 1267
    , 1274–75 (Miss.
    1991) (affirming trial court‘s denial of specific performance because first-refusal did not
    specifically provide a mechanism for determining holder's purchase price); Hood v.
    Hawkins, 
    478 A.2d 181
    , 186–87 (R.I. 1984) (same); Rolfs v. Mason, 
    119 S.E.2d 238
    , 242
    (Va. 1961) (same); 25 Williston on Contracts § 67:85 (4th ed.) (―A right of first refusal is not
    subject to specific performance where it is too indefinite, as where no price, or formula for
    calculating the price, has been agreed to.‖). In the instant case, the trial court‘s decision
    amounted to specific enforcement of an ―agreement to agree,‖ which as discussed above, is
    not appropriate. Accordingly, we reverse the trial court‘s decision finding the right of first
    refusal as enforceable and its decision ordering the parties to engage in negotiations.
    CONCLUSION
    The judgment of the trial court is reversed. This cause is remanded to the trial court
    with instructions to enter an order granting Appellees‘ petition for declaratory judgment and
    declaring the right of first refusal unenforceable, and for all further proceedings as are
    necessary and are consistent with this Opinion. Costs of this appeal are taxed one-half to
    Appellant Mark Abbott, and his surety, and one-half to Appellees Clyde Abbott, Jr., and
    Geraldine Abbott, for which execution may issue if necessary.
    _________________________________
    J. STEVEN STAFFORD, JUDGE
    - 10 -