THOMSON OIL ROYALTY, LLC v. Graham, 351 S.W.3d 162

In 2008 Thomson Oil and EOG sought Haynesville leases in San Augustine County, Texas, and both approached Graham about leasing her minerals.
On July 21, Graham signed a memorandum leasing 306 acres to EOG for $127,000, effective July 18, 2011.
On July 23, Thomson Oil’s Scull contacted Graham about Thomson leasing the same 306 acres and an additional 241 acres.
On July 24 Thomson sent Graham a lease for both tracts and a bank draft for $136,755.
On July 25 Graham signed a lease with Thomson covering the 306 and 241 acre tracts.
On July 28 Scull sought to assign Thomson’s lease to EOG; on July 30 EOG recorded its memorandum; Scull learned of the EOG lease.

Issue	Plaintiff's Argument	Defendant's Argument	Held
Whether Graham ratified Thomson's lease as a matter of law	Thomson	Graham	Yes; ratification established; judgment affirmed

Harris v. Archer, 134 S.W.3d 411 (Tex.App.-Amarillo 2004) (fraudulent contract may be ratified; and ratification forecloses avoidance)
Enserch Corp. v. Rebich, 925 S.W.2d 75 (Tex.App.-Tyler 1996) (ratification may occur when party accepts altered terms)
Barker v. Roelke, 105 S.W.3d 75 (Tex.App.-Eastland 2003) (whether evidence is incontrovertible may determine ratification as a matter of law)
Madison v. Gordon, 39 S.W.3d 604 (Tex.2001) (actual knowledge required for ratification)
Old Rep. Ins. Co. v. Fuller, 919 S.W.2d 726 (Tex.App.-Texarkana 1996) (ratification can occur if aware of material facts)
Land Title Co. of Dallas v. F.M. Stigler, Inc., 609 S.W.2d 754 (Tex.1980) (ratification extends to the entire transaction)