This clause outlines what is to happen when a party receives an offer from a third party. In general, the receiving party of a third party offer has an obligation to inform the other party to the contract that they have received such an offer. The other party may have the right to match or accept the third party offer as well. After a certain amount of time has elapsed without action or objection by the other party, the receiving party may be able to act on the third party offer.