An owner leased a commercial building to a civic organization for 25 years at fair market value. The lease included a reasonable right of first refusal to purchase the building if the owner finds a buyer ready, willing, and able to purchase at a price agreed to by both parties. Fifteen years into the lease, the owner was approached by a friend who was ready, willing, and able to buy the building at below-market price. The owner notified the organization, which invoked its right of first refusal. However, the owner refused to sell for less than fair market value. Which statement is correct?

• A. The right of first refusal is unenforceable because the Rule Against Perpetuities applies.
• B. The civic organization is seeking to enforce its right to purchase, so this would be an encumbrance on title that the organization would receive.
• C. A promissory restraint on alienation may be enforceable by injunction if it is reasonable.
• D. Whether the right of first refusal is a covenant running with land is irrelevant to the remedy.

Answer: (C)