Smith v. Mitchell
North Carolina Supreme Court
269 S.E.2d 608 (1980)
A subdivision restriction gave the original grantors, the Smiths, and later their son Osmond Smith (plaintiff) as successor, a right of first refusal on any lot resale at no less than the price the seller would accept from any other buyer, lasting for Osmond's life plus 20 years; the Mitchells (defendants) resold their lot to the Barbers (defendants) without first offering it to Osmond, and the lower courts held the right of first refusal an unlawful restraint on alienation.
Whether a restrictive covenant in a conveyance reserving a right of first of refusal is valid if the sale price is determined by fair market value or the seller's desire to sell, and the duration of the right does not violate the rule against perpetuities.