Ferrero Construction Co. v. Dennis Rourke Corp.
Court of Appeals of Maryland
536 A.2d. 1137 (1988)
Rourke (plaintiff) bought two lots from Ferrero (defendant) and, as part of the deal, received a perpetual right of first refusal on any future sale of Ferrero's remaining surrounding lots. When Ferrero got a third-party offer on one lot in 1984 and notified Rourke, Rourke matched the offer, but Ferrero then declined to sell to either party. Rourke sued for specific performance. The trial court found Ferrero's notice was an offer Rourke validly accepted, but held the contract void because the right of first refusal violated the rule against perpetuities; the Court of Special Appeals reversed, holding the rule didn't apply at all.
Whether a right of first refusal is subject to the common-law rule against perpetuities.