FUTURE INTERESTS-RULE AGAINST PERPETUITIES--VALIDITY OF AN OPTION INCIDENT TO A LEASE EXERCISABLE AFTER THE EXPIRATION OF THE LEASE

On November 13, 1941, plaintiff entered into a lease with defendant granting defendant the exclusive right to mine and remove coal from plaintiff's mine for twenty years. Incident to the lease defendant was granted the option, "at any time subsequent to November 1st, 1945, to purchase the remaining tonnage of recoverable coal" at a specified price. A deed thereto was placed in escrow. In January, 1946, defendant elected to exercise the option, tendered the price, and received the deed from escrow.

Plaintiff refused to recognize the validity of the option and commenced an action in equity to cancel the deed on the ground that the option, being exercisable "at any time," extended beyond the period of the lease and was void under the rule against perpetuities. Held, the option is valid. The parties intended this option to be exercised only during the term of the lease; therefore it did not violate the rule against perpetuities. Poland Coal Co. v. Hillman Coal and Coke Co., (Pa.

I947) 55 A. (2d) 414.