Atlantic Richfield Co. v. Whiting Oil & Gas Corp.

In 1968, Atlantic Richfield Company (ARCO) (defendant) acquired an interest in land owned by Whiting Oil & Gas Corporation (Whiting) (plaintiff). In 1983, ARCO granted Whiting an option, expiring in 2008, to buy back that interest, while ARCO retained the exclusive right to revoke the option at any time. When Whiting sued to enforce the option, ARCO argued it violated the common-law rule against perpetuities; the trial court agreed but reformed the option under a Colorado statute to save it and ordered specific performance. The court of appeals affirmed, and ARCO appealed.