In 1931, the respondent's predecessor conveyed land to the appellant's predecessors solely for gravel extraction, with an agreement granting a 'first option to purchase' the land for $1.00 once all gravel was removed.
The appellant brought an application to declare the agreement void under the rule against perpetuities.
The application judge dismissed the application, finding the agreement created a right of first refusal rather than an interest in land.
The Court of Appeal allowed the appeal, holding that the true intent of the parties was to create an option to repurchase, which gave rise to an immediate equitable interest in the land.
Because the option was not exercised within the perpetuity period, it was declared void.