History
  • No items yet
midpage
Owens v. Corsicana Petroleum Co.
169 S.W. 192
Tex. App.
1914
Check Treatment

*1 REPORTER 169 SOUTHWESTERN рroceeds E. Mc- the sale were J. balance of the of the ed to After tliis J. L. & Co. McCan purchased creditors, applied payment general .wares, goods, mer- and to the Can & Co. by amounting pro ap- credit, then plaintiff, whether the rata received chandise from to on pellant $1,064.53. than sufficient defend- sufficient or more About March discharge depend on purchased half inter- to the amount of other indebtedness the this balance would Marshall’s ant Sammon place business-taking firm Marshall’s est in the considerably firm, assuming due owed. more have the by all indebtedness point sufficient, than but the evi- the firm. enlighten clear, not us. It is how- McCan dence does ever, Plaintiff admitted verdict in favor various rendered various times Marshall at leaving amounting sums, a balance defendants on their cross-action was not presented it, claimed, Some warranted evidence $455.66. due facts, and must have and Sammon us in the statement of McCan after had been business guess speculation. running, they en- over their been the result of Cer- turned merchandise, tainly wares, goods, no substantial basis therefor there is tire stock of permit testimony, firm to we cannot all notes due and accounts creditors, judgment plaintiff thereon stand. all their based for the benefit of including plaintiff plaintiff. judgment directed McCan court below revers- apply of the ed, in the assets his half interest remanded. the cause payment his individual debt firm to the remanded. Reversed and plaintiff, Marshall before accrued bought Plain- business. an interest through president notes and tiff sold the also sold accounts to McCan for PETRO al. CORSICANA et OWENS price goods, received stock of (No. 629.)† LEUM CO. shown, than further therefor is Appeals (Court Amarillo. Texas. Civil goods proceeds sale May 30, for Motion 1914. On discharged plaintiff 27, 1914.) Rehearing, and accounts notes June due to it individual indebtedness $400 of the (§ 213*) Appeal 1. and Error —Presenta Necessity. It was not shown McCan. Review — tion Grounds objec- Leg. 59, declaring payment applied c. proceeds Acts 33d were exceptions charge of the court tions or not made to the McCan creditors of debts of Sammon. trial court shall be deemed letter written It is shown waived, tions, apply peremptory instruc- does not 15, 1912, plaintiff on November to McCan of a such as the direction verdict. to him Appeal and returned canceled cases, see [Ed. Note.—For other Error, Dec. Dig. 1304^1308; 1149, 1165, paid Cent. §§ his half out of notes which were four Dig. § 213.*] These notes in the business. interest Appeal testimony 719*) each. $100 (§ other were shown and Error Re —Matters viewable —Fundamental analysis Error. make of we can This is best directing a The action of the trial court in presented As to us state- evidence. the ment of apparent upon verdict an error the face unsatisfactory and facts, appellate record, which the court will con- error, appellees sider as fundamental even in the fusing, absence not seen fit to aid have assignment error. us with briefs. cases, Appeal and [Ed. Note.—For see other assignments appellant’s We will discuss Error, Dig. 2968-2982, 3490; Cent. Dec. §§ in detail. of error Dig. § 719.*] According appellant’s testimony, 10*) Validity—Unilater (§ 3. Contracts — composed and Marshall owed of McCan firm al Contract. time Sammon it a balance of A an owner of oil lands contract between company company, giving bought interest and assumed Marshall’s rentals, right which, oil, to bore Nothing firm. indebtedness upon upon acceptance by owner, extended until and Sam- indebtedness McCan or to surren- another payment goods, der the lease stock of notеs and mon turned their owner, was a unilateral void to the applied appellant accounts over being mutuality, the $5 for want of payment generally debts. Mc- of their to the no consideration nominal consideration ap- direct, company had the grant; nor had no Can where the fook the steps though boring al- a well for 18 toward apply', pellant half in- McCan’s wells three sides it drilled debt of his individual terest to question, the effect of which would be firm’s creditors as to the exclusion it, owner, on refusal of oil from to drain rental, attempted to cancel the If we assume that the of the to be done. lease; to the nature of the busi- due by appellant applied was one-half $400 proceeds temptation mining, and to the offered ness of oil a shrewd goods, notes, sale of the of purchase operator to at a nominal accounts, whole must sold price then the lands the owner ignorant value, applied so, which hold them If then the $400 $800. indefinitely speculation, neither on the individual debt McCan permitting working nor them himself another applied should firm’s debt so. do discharge'it pro tanto. This Contracts, cases, [Ed. Note.—For Dig. 21-40; Dig. owing 10.*] Dec. § If §§ firm Cent. $55.66. leave the still Dig. Rep’r Dig. Key-No. topic Series & Indexes &Am. in Deo. other oases see same and section NUMBER * For granted by Supreme error Court. † ofWrit *2 CO. PETROLEUM Tes.) CORSICANA OWENS — — (§ 73%*) — 9. Mines 78*) (§ Con and Minerals Leases 4. Mines and Minerals tracts —Duration. for Performance. Time up- company, time limit the failure to have a While such contract Under prospecting and for the on a contract or lease refuse one the owner notice ground wells, payments, a rea- oil is a have for quarterly sonable did rental boring might void, begin a limit which it of be declared to be his refusal time after years might during purpose be extensions ten which the lease well; since property quarter quarter company on the extended from to enable and to ex- pay for ment should not rentals of the lessor the real validity grant. such a con- establish the clusive cases, tract. and Mines see other [Ed. Note. —For 205-207; Dig. Dig. cases, § Dec. Minerals, Note.—For Mines and §§ Cent. other see TEd. Dig. Minerals, 200; Dig. Cent. 78.*] § Dec. § 73%.*] — — (§ 77*) Lease 5. Mines Minerals and Appeal Court, from District Wichita Coun- of Forfeiture. Waiver ty ; Judge. Martin, P. A. by permitting lessor, lessee to ex- A developing money large pend property, against oil in Action Mrs. sums of M. J. Owens may right a for- to declare waive Company Corsicana Petroleum and others. the lease. feiture Judgment defendant, Company, Petroleum cases, and see Mines other [Ed. Note.—For appeals. and and re- Reversed Dig. Dig. 204; 77.*] Minerals, § Dec. § Cent. manded. Rehearing. Motion for On Slay Mack, & Simon and Theodore all of 73*) (§ Minerals Mines and 6. —Contracts Worth, appellant. Greer, ‍‌​​‌​​‌​​‌​​​​‌‌​‌‌​​​‌‌​​‌‌‌​‌‌​​​​‌‌​‌​‌‌‌‌​​​‍Ft. Geo. C. Conveyances “Option.;’ and — Carrigan, Montgomery Britain, Dallas, and & whereby own- (cid:127) made or lease A contract amount, granted er, all the Falls, appellee. of a certain in consideration of Wichita years, oil, etc., for ten the lands produced longer oil, etc., much as and as HALL, Owens, yielding J. one- Mrs. Maria J. paying quantities, eighth owner as to the the sur- providing produced, part all oil viving Owens, deceased, wife of M. J. and complete company a well within should the year behalf, in her own as well as for the heirs pay as a lease owner or thereafter decedent, against said during instituted suit quarter each amount a certain rental the term the completed, Brooks, receiver, until the well B. or and S. its Mrs. productive drilling full be well should aof Owens, Owens, defendants, Julia and Gus as company lease, fоr the cancellation of a lease on 188 acres upon pay- any time might ment surrender the Among quar- stipulations quarter of land. other fromit not neces- or continue payments, agreed quarterly by making the sary ter questions to the determination of the in- any right to for- disclaimed the owner and that feit the volved, following: the lease contained the thereby account lease on grantors “Witnesseth: That consider granted for a valuable twenty-eight (Citing ($28.20) ation of lars, of which is bargained, sold, and dol else. “option” and 2°/ioo grantee, receipt 5000-5002; hand 6, pp. Phrases, vol. vol. and Words hereby acknowledged, granted, has 7739.) 8, p. gram and delivered unto cases, and Mines other [Ed. Note.—For oil, gas, coal, all tee all the other minerals Dig. 201, 210; § Dig. Dec. Minerals, 73.*] §§ Cent. and under inafter that certain tract of land here described, with covenants of Convey —78*) grantors (§ warranty, and that have sole and Minerals Mines 7. convey premises right to of with' the exclusive and Contracts. ance company right drilling, operating mining, such thereon Under well, complete oil, producing gas, coal, min within for and erals with all the other months was operation such rights necessary within required to and incident complete thereto, part right it to enable to construct and as would such time within provision time; telephone pipe extension telegraph maintain payment of roadways leading months after lines, joining for 3 from ad premises com- quarterly enable the rental lands and across the each already begun complete grantors within pany 12 it ment or a well other lands erect during give buildings it time and not to struc and other and maintain develop- delay premises might the land and hold from the water tures and to use operating of a well. the commencement in and the convenience neighboring lands, cases, and this and see Miñes other [Ed. Note.—For during removing, here Dig. after the term or 205-207; either Dig. § Minerals, 78.*] Dec. §§ Gent. placed improvements any property or of, or by grantee.” erected 78*) (§ and Minerals Mines unto use —Contracts and to hold “To Conveyance years grantee, —Construction. for the term of ten of the the date for de- leased in which gas, hereof, oil, Contracts and as much fa- velopment vorable most to be construed produced paying for oil are minerals are and other preserve order yielding grantors to the quantities, the one- begin performance rights, must produced the lessee eighth its within oil all delivered saved per- time, and continue expense a reasonable premises, into free of the tanks diligence; reasonable pipe grantor’s credit, formance with reason a condition lines or discovery production royalty in- included or precedent or to the continuance oil that have been heretofore said terest sold, premises, such vesting conveyed by grantors estate reserved, agri- operations cultural in land less valuable for predecessors make the in title.” delayed, purposes and, if result agrees complete “Grantee on said speculation. (1) premises hereof, oáe the date cases, thereafter as lease see Mines [Ed. Note.—For twenty-eight ($28.20) Dig. dollars, Dig. 205-207; Minerals, rental § Cent. Dec. §§ 2»/ioo day months advance from the 6th each three 78.*] Dig. Dig. & Key-No. & Rep’r Am. Series Indexes topic other eases see and section NUMBER in Dec. * For 169 S.W.—13 REPORTER 169 SOUTHWESTERN of all fundamental tions. under for a act appellant tions were ises completion verdict resentatives, and and extend signments vision this state that in gations, granted. nessed which, lease; thе first it is our render, shall be court for a valuable accept renounce ask for upon delivery of the for a breach hereunder, of its by making the grantors ticated the of surrender ment ed it. shall hereby drill statute of this upon ror. leased and Mrs. contention, grantors. amounts and end of the term or ed), (or quires “It The substance [3] Ten [1] [2] It assignments June, 1912, a check directing continue the lease rental proper order want of lease was during limitations in of 1913 sum of quarter M. Without The court is completion.” here, thereof and has the to their made appellate when property does grant, and covenants a forfeiture full consideration thereof has liquidation fully J. then or more duty assignment'of and presented, Grantors record, of a Louis face of the county propositions grantors the existence discharged payable together Owens This period a deed sum of made in the drilling mutuality; the terms to a verdict error, tendered (chapter 59, due under understood grant disclaim a unilateral appellee. The taking nonproductive between accepted objecting *3 grantee, of error. heirs, shall quarter stipulated quarterly surrendered above mentioned,_ apply assigns.” Campbell. court consider as or the account additional instrument peremptorily héld of errors, until said agree five hereby is that upon plaintiff’s of of the action of the of this quarter we satisfactory consideration become defendant six months successors, from all deposit herein surrender, and above her the full consideration and conditions all lease and is an error recordation ($5.00) will consider the first of this record, with exclusive are submitted under all amounts error, us objections and thereafter and full force and peremptory number that notice even money paid and the trial court. full homestead contract, husband, parties hereto bind themselves time p. wells grant or grantors for null and terms, well shall contained, where- provided, fundamental er well is ground appellee propositions petition 113) precludes grant. appellant’s each of which herein payments, dollars, legal surrender charge from the date option upon instructed personal for extension and rentals of such year duly on the to claim or of times in grantee ac- trial delivery of same signed productive, conditions, and effect post had been abandon- completed apparent then expressly any pro- void; requires either instruc absence drain stipulat But objects authen- operate and herein, excep court prem This year, office here could have void wit- obli- rep- sur- the as to enable the lessee to hold it due as the unilateral re- all to ly, stipulated another to do W. of their ness of and to the after a substantial of the nical to develop minerals. is sustained been almost speculative purposes erwise. had in had no contract and no templation of the lessor when that the see. to binding upon had in premises. Generally, condition shows the gence upon vantage M. pellee $5. Line Co. held to be at variance in their construction of oil and In other contract and bore a well enforce, months, and the mere contracts for an may acquire 1913, parent ment, months; al and accepted payment toward quote Judge “do gas leases, A careful surrender gation state that contracts of this the to “Such leases vest no The facts question, neither purchase suspend operation, Guffey Va. agreement. drilled By been no breach; If at had the void, resting that the 27, lands good pass boring mining, appellee This is due to the nature the rents at the jurisdictions but, v. to do of working reading temptation rental Petroleum Co. v. Oliver It is said: Our construction oil and void for want of for three months continue but it 29 A lease should not be construed so wells the absence of a merely enforced and the unless the great weight value, Teel, uniformly the effect at a existence Gaines, in faith but with mineral leases it since the so.” Steelsmith S. E. upon the a grant equity sought only right interest had taken upon the Teel uncontroverted evidence owner of 95 Tex. seems to be settled nominal them himself nor and to hold them indefinite of the contract shows compliance attempted a nominal doing agreed interest.” trend 978, what was case show offered shrewd especially appellant’s at necessity rental of we find the appellant, will not three for one present given option by National grantors. appellee lessee has the appellee 44 any who because of want of fact, favor of the lessor. which would be which the 591, expiration option for in the instru- price no Case, supra; to bore for oil which is L. R. A. 107. upon appellant’s sides of the land authority showing them longer, canceled herein he doing premises. Ap- title time steps with the terms which it could only clearly v. lands, of oil consideration, regard 68 S. W. character, On March was unilater- this contract' of due dili favored, decisions Mrs. land. entered into was to explore to continue Gartlan, Oil & (Civ. App.) courts are under the permitting real whatever upon and nine take ad grantors what he appellee appellee ignorant operator right the les Owens, mining, in con in this a tech this is is grant. three or to This each Pipe busi they obli- 980, oth are has ap- 45 J. is 6, Tex.) OWENS v. CORSICANA PETROLEUM CO. vided for the statement er the have taken months, term the lease years), land without able June, 1911, for the is The to time must be App. was not lant extend the the purpose clearly refuse gin boring benefits sideration to tice Gaines a acter, grantor], he either must have received this mon issue, of minerals had written land, place constituted held, have ment, 607; Hodges the pleaded from under deposit on the land at this, 30th refusal said the 30th of and therefore 79 S. *4 ey conduct of his 68 v. the last-named case it ‍‌​​‌​​‌​​‌​​​​‌‌​‌‌​​​‌‌​​‌‌‌​‌‌​​​​‌‌​‌​‌‌‌‌​​​‍is said: thorities from other “Hence, want [4] void, had nо Staley appellant League, Tex. Tex. [the rents for 60 rents and testimony result, Hines, primary contract of 443, done if the evidence had acted in his behalf to his before in accordance Appellee and it W. W. reasonable of January to purpose notice was we cannot year Civ. completed provided exclusive 590; 884; words, the in the contract and extend in order to (Civ. mutuality by Staley [the lessee] providing notice lease accept it for the reason a well. to bore the January, of estoppel 31 Tex. that or after Hines was promoting S. W. in the Teel to enable purpose refused 4 S. W. with other could is not §25, is not could assert App. 47, thereunder and forfeited, except support consent development during of facts insists, the time estoppel must Presidio Forney App.) in such and the 3d Brice, oil, money appellant, development. This was the time after (which of the fact said 108; to have the held grantor’s given assent ascertaining grant. It with the days] shown. whatever in contracts shown whether or a Civ. states bind have induced 860; having date 74 W. 32 Tex. Civ. payment since y. one these that, Roberts v. appellee on the on well, is therefore time, by surrоunding Mining wells, appellee extensions such extension. was stated to him shown such none.” App. 474, Cáse, Ward, S. grant, greater part that real consideration March have been this affected of load of cited therein. of the contract in It Mrs. her grant to time for said grant. it In a few decision land; that by Hines The extensions was been February, the injury informed of the to obtain the appears part appellees trial. Besides time, the rent appears that property, or, refusal Co. some work or the existence pipe Witherspoon fact, 25 Tex. Civ. 105; of this char Owens, against him, between proposition. on 6th, if the well McFadden, hauling, on appellee to pipe the entire that case: she would Hines uniformly days App. 358, 72 W. hold the this explored but Appellee declaring there was still or detri no con and au facts as changed of Jus that Emery Bullis, to en accept be ten might S. of appel could three when from part have instructing that pro took aft [the op- be the jury. his it, (cid:127)required forfeiture leased Tex. Civ. unless contends ness, Faulkner. induced it to of the cases work or not out estopped at all work months ting by appellee well after abandoning versed, and the cause remanded. ey vides may, case of this the appellant’s Washington terials on the money may v. W. by sides, but reference to the As stated in the her date of on tion to tion, appellee well ing be unilateral and void conduct on tract asked to shows that we are correct. Mrs. Owens and we are “No Because By In [0] It is given to is true Carpenter, in passed upon account of his failure 57, in which writ of rule discussing 117 barrels of expressly the daughter provision state, its on upon an extended .the to declare a lands within 18 months developing gives events, expenditure failure first do state that completed in lessees announced Hunt, default motion the On Motion for that because lessors again are sustained App. 430, the lessors the work held the another error the lease contract] land had cancellation, v. Rosario [to first well within be due that court to submit proceed involving to a 43 Tex. Civ. hauled lumber and the evidence verdict,, if the both maintaining expiration to sink one or court erred that has been chose to given within 6 the lessee to the in review the authorities Court. original opinion, expend large we compliance Tex. argumеnt, of about land, it case forfeiture, trial, apply $5, lessors testified holding company to be specified rehearing or to let with the at earnestly mine, may the 67 W. to cancel the was Great Western Oil Co. erred oil Mining the lessee to the main of certain acts the lessee can be and whatever Rehearing. would come within exercise this S. lessors, by day; want of Reese, J., by appellee’s statement discussed, performed by. error was refused sufficient wells appellants, bearing upon more wells on the elect this suit. judgment $12,000, he App. time, merely 15 in and to commence in the 6 months the contract in which time. But for with to that in the contract commence work work, the lease & Mill. and this sums of it is insisted trial insisted peremptorily S. W. stating 459; issue to waive upon question option, we lessees, to sink elects. his lease, but, this case. cancel the this con- to have produc- permit we are do Co., a few obliga- is re- effect, Bena With- many three lease facts mon lapse held, that him. rule wit- ma- the are up- in REPORTER 169 SOUTHWESTERN

months, vided sufficient leases of lessee plying in 18 jury want of unless erts S. W. mary purpose would plied the contract. 6 himself null sor timé, until the having have the rights partitioned gin after the ment оf the granted in which drawn time, wise Brice the that, sors) see to per month, which was decided option of express lessees tion, void, provided lessors the contract bound App. work lute reason said be contended for failure elect to have it so. tinue the lease in force paying annum as til says: shall thereafter ing, to drill a tract. The result of put for one “This months thereafter within compliance It will be land, the instant proceed the should the face of land and operations lease v. McFadden sustained. No an end to the contract unless the and void.’ specific if premises $4.00 as declared in which became null and void. The lease specified.” with 474], citing Emery present entitled to it under the contract. [32 not be bound hdve been 105, and for either commence complied the lessee well is elect to obligations to of its him to and the lessee *5 year to surrender January 28, 1901, were land was was held land final division of the case or Tex. failure to have the be his full would rental; rule to until within the lease contract of an undivided interest of 14 acres tension of with such or 72 complete prevent land, seen complete performance, option on of the contract case, becomes Carpenter do the work case No within partitioned to do the contract month from month month un in g;ood S. W. lessors commenced, lessors Civ. pay therein agreement, with failure prospect exercise It forfeited, payment of the annual rental upheld or recover be no ‘fails agreed. all the if the lessee was a reasonable [32 under partitioned.’ it would sum the lessee land such cancellation appellants to the this App. 358], might neither, his contract reference In the case of compensation stipulation, a 6 effective 606. to commence proceed Tex. Civ. well development, undertook ten cents this time limit such failure is not for the contract. laid faith the well or had, League well. if the lessee optional partitioned their months, benefits the contract sum court court, he had demand, of the lessee is that Case, within a at the specified terminate it at operations The inference to first discussion court, seem this do would down require In continue the lease land, the case of Rob within to another option with each says: to the contract fact, could time, could, so? Continu- which the cited The lessee [31 Tex. Civ. lease have the valid, Judge clear that has the was held with App. 47], question pro per. or the event to damages forfeited the contract unpaid to the facts the lease how furnished and to be to way in the con “and erals ing tract with his and to reasonable proceed not held all Hodges 6 months unless he appellees had to ‘The as other to do obligated acre be made void for prospect provided case shall be (the develop the and the the les .events, can it lessors affects contract considered and option quarter, grant, Reese bound of this cancel lessor count abso- time. to be paid, land, stipulated upon com case, have hereunder and thereafter be land shall become rent that enants herein 590, suit Ap pri ed, les not les the be either to surrender op in 74 $4 be to v. 6 ‘and 5000-5002. year; charged accord option ise tions between surrender, deposit claim hereby Contracts, satisfactory agree all notice of cepted grant, same thereof, ation stipulation recordation above to vided tion: productive, grantee acquires etc., fied work within a fact tract which binds the said term of ten pleted, tors for the case of National Oil Co. and delivery stipulated, unilateral and void. To sideration.” tionally, to do rental * * * contract, and ed January and, form “It It Even [6] “complete case the end of the amounts premises, has payment assigns.” in consideration of the to the produced decision of the premises the lessee not heirs, as anything. are Apply June in full force anything, any provided, Here but could that contract and all $28.20 bind grant further or if the or thereafter much thereof, grantors expressly and not at Grantee fully 28th produced the eontz-act did not bind the suit right a full and § this duly grantors delivery the lease rentals successors, shall 6, 1912, the land in the contract under considera grant the then What themselves to it is the rule 232; years— a well” null and .option post contained, parties longer within and saved from the understood and unenforceable for want each three surrender, for terms, stipulated: lease the authorities payments, appellants lease We any term or authenticated, and has the be full due it has agrees parties herein made to specifiеd do? office 6 claim, specific performance, herein the question have not been dialling pay granted, etc., as from and all lessee, Words and provisions thereunder, present is announced one void; was made June paying quantities, had personal representatives, was to continue for a legal held conditions, own grant to pronounced grantors, True, controversy, effect oil, gas, the same effect to been held that a one-eighth part of a surrendered as herein until said consideration hereto whereupon to payment shall be bound year year by making obligations, Teel, months money paid not termed this an granted. else. quarter time, complete enforce for a valuable and proper as the premises renounce grantors to be a unilateral sum of or to continue surrender amounts then due released and dis- above check resting right it ask from for are thereof any has or other min- such to do together Phrases, pp. when tender- bound itself 1 Elliott on grantee.” there to the in consider do, conti-acts of well is com- a forfeiture for the ex- county in advance to do able held void in to payablе mentioned, $5.00, quarter a deed of record or promised a as extend within a premises. Grantors the and dis- that and cov- to grantors uncondi the leas tuneful 6, 1911, well on of con of this limita- prom- a on be ac- option of all lessee grant yield- speci gran- upon lease with 545; pro date con per find oil, ac- for as to Tex.) PETROLEUM CO. CORSICANA OWENS right damages to sufficient to show the failure could comply recover development.” forfeit the lease want of be Such an action would therewith? provision it successfully further met and defeated upon that, up by appellee, the defendant provision, surrendered if set will completed makes it terminable $2 ment of of only within one event is not $28.20, named year, appellee Since the sum the defendant. not and will a nominal months. and thus extend the Then three appellants suppose deprive file suit should when the lease of such character great oil-bearing term recover value of the lease trifling considered, They certainly could than three months. prevail more action, sum mentioned cannot be considered in the face of prin- express stipulation than nominal. It is a well-established to extend ciple of law when time is if for than months at a more three appellee. will of one optional appellants that it is terminable If could comple- parties, damages, require becomes terminable of the will of 583; neither recover Ed.) Prop. (4th Real either. Wash. with- tion of a well'nor recover rent Railroad, 392, W. 18 S. appellee, Tex. Robb out the consent of might Many authorities cited clearly Any attempt unilateral and void. instantly sustaining principle things announced. do either of these could be Ripley, L. by appellee by interposing Co. v. 10 Wall. that term Marble defeated whereby permitted United Ed. Court it is States, giving passing upon to one a contract surrender the of $5. to terminate it No of the year’s one will contend that mentioned notice, adequate be en- therein is held could or sufficient consider- by Ripley gave anything granted in forced ation for or surrendered Ripley giving distinguishes the estate terminate the contract. feature This *6 following year’s notice, using language: Carpenter Case, supra. the instant case from the why specific performance briefly “Another reason will some of We review the cases is found in decreed in this case should be by appellant cited motion: The consicU performance by Such the want of Carpenter of eration set out in the Case $1 Ripley suit of could be decreed enforced adequate Company, an was held be consideration for the Marble the expressly stipulates business and may relinquish the that he Appellee quotes the lease. ease of the any abandon the contract at Guffey Oliver, J. M. Petroleum Co. v. 79 S. giving year’s on general principle of one notice. And it a W. 884. The lease contract that was case and con- when, personal in- that any $1, ‍‌​​‌​​‌​​‌​​​​‌‌​‌‌​​​‌‌​​‌‌‌​‌‌​​​​‌‌​‌​‌‌‌‌​​​‍capacity, contract, based a consideration of nature of the the incapable cause, being other enforced incapable a stipulation. tains this against party equally party, one that * * * party, “It is that the second enforcing specifically against it upon parly any $2.00 way though other, latter its execution part, as- of the second its successors or might in itself be free the difficulties at- party assigns, first, signs, to heirs or tending in the former.” its execution part, party its successors of the second assigns, presented surrender this argument shall The next case сancellation, which all after appellee McFadden, is Roberts v. 32 Tex. accrue under and liabilities thereafter to and virtue of its terms shall page 57, ’ App. page Civ. 74 S. W. 105 on cease and terminate absolutely 111. We insist that this ease null and void.” also sustains lease become position original opin taken us in the construing contract, Garrett, J., C. quote opinion ion. We as found said: follows: “The contract in this case was brings question us “This the validi- was in consideration of the lessee. It executed ty by appellees royalties though reserved, It is contended lease. that silent as to the development implies First, required, lease is void two it was tlfe reasons: extent of a able of law unsupported by any diligent, good faith, a unilateral contract con- Junker’s con- and reason- condition for * * * development. By group and was forfeited sideration the second any veyance was done prospecting assignments to defendants before seeks to maintain defendant thereunder; second, they pur- that contract was not unilateral and void for Junker, (1) mutuality, chased of the lease. We are of for value without because: There was a notiсe of want of obligee that either of covenant on the to do some- objections thing involving expenditure money, time, these is fatal the lease. It was shown, of dispute, labor; provided (2) that or put that the lessee could the consideration paid only by paying not, named in the lease as $1 an end a valuable con- only sideration; ning although begin- fact, paid, (3) and the void rested, mutuality, which the contract far as when the lessee the lessee for the want promise partly concerned, accepted the was the and had executed back, leased to deliver to the his act related and made it lessor 10 cent, gross may binding beginning. Although op- It from the be product. question presented complied held, when tion had been ment of may with in this commence- (it stipulated, work, state has been intimated and the contract case of Oil the nominal 547), Teel, character, yet, 67 S. W. Co. have lost its unilateral subject $1, paid, support stated, will consideration option above failure to to forfeiture for diligently prosecute for the fixed time named lease. only oil; notwithstanding here not is it true that cash land for and this But paid, expenditure money alrеady made, named was not in fact sideration contract but and labor compliance stipu- was further weakened if it fell short a with the obli- alleged petition gation, lation that could and the facts terminate the ate SOUTHWESTERN REPORTER pressly same long clearly the described, for recites a valuable dence underlying tle to such by instrument must be when consideration developing, said: to be an absolute offered to declared faithfully ments claims contains Emery to his vendors a and other failed; contract it is tive wholly of said explore, ure of consideration for same leased within six fest etc. the lease party should have six quarterly? begin operations lease. and shall have the this contract whenever which to den as to sideration for the ing than tion to The sum ment of Mrs. Owens and the execution of the lease was a considera- for the full imagine al contract.” respect lessor should injury and lease at n “While “(1) It is claimed that “Provided, Appellee does not contend in the instant the execution of said execution lessee was the lease at only agreed thus he has Case, as the so Emery shall remain in force and effect partitioned, and that this amount should be shows was disposing said and contained For the want therein undertaken render it of the second sustained. No agreement prospect, considered, support void.” $5, it would be the instrument under procure so comply minerals, perform, etc., was the prospect year. the land minerals was Emery having primary with due from which we have do more as is long time, however, While therefor oil provided time, of said (3) League, apt given the consideration actually paid, is so and other minerals. This anything pertaining to the his full totally inadequate sought with the covenants months after said glaring and develop, as the provided in partition If her consideration in months after the perform anything. the lessee conveyance therein in that the and that promise words of the contract diligence, unprofitable not to do so, thereto to cease party construe good it is .part husband, insignificant that same sum was undertaking time without instrument. The mutuality; not vested in it shall become apparent issues, that the sum why parties instance of a it was compensation delay instrument to be described, distinctly never stipulation: be held Tex. Civ. Roberts v. McFad- faith on the of the secоnd for a and (the the second faithfully said land real consideration the terms of said the instant operations was it conveyance, of the minerals prospecting d performed, paid which the evi at the time Pleasants, together, cannot thereto should and it shall be effec- performed agreement was lessee) that the oí terminat- just quoted, land and to performance at all events bound in no (2) complete Emery free of cost named for in amount understood thereafter lands had as a con- App. 474, period in appellant provided partition void: paid unilater- We paid for fail- for oils comply therein be held is ex agree- whole and under mani- case. term land and, pay-’ part and for this rule is thus so,” can the with J., ti so ure to to of governing principle acter under demised ent title in the a mere nudum cause of come from to be construed most lessee has the lease is no only preserve kind, time the to the continuance or v. leases, contracts in which of a well. Bryan’s lay tract, and continue in the mitted to extend the lease from term to term was time this plete the contract under which We months, if, perchance, frоm accident or other deferred. cause, under the contract.” be observed that this is time named would terminate not a time, lation, purpose operations within such time as would enable No time is fixed within which a tition to the and appellant nature of tle that, The instrument under consideration development in ments are not tle in the the to be tracts “A And so it [8] [7] Our construction of the contract League Huggins Daley, being complete, said contract. secured, 48 L. extension by compliance terms of production language complete well, not gone character think, during appellant shall consideration is the covenants and different As and it would seem with complete explore performed. of development,, its the failure to and the decisions grantee premises; Law of for which inserted for the his prospected performance want lessee must begin said of the land in which to R. A. shall this kind do not should options, Case: completion intended grantee, longer binding upon exploration but the consideration reasonable prospect further, which it could hold the acquire the contract and the rights conveyances pactum, our by Pleasants, J., *7 already begun had 12 months within which is that from that rule is procure partition * toell, lessee, oils or other minerals mentioned of oil 320]: Petroleum, p. the well within 12 months. have months after the be said of the with their terms on the that such land leased for the mutuality; * * and can In other in all opinion, explorations, ground presumption 'the enabling appellee forcibly under a contract of this or in which complete have six months after the and further title 99 Fed. 613 vesting any favorably of his is a six and works a forfeiture of reasonable time. It is to ‘While most is well settled that con had been applied prospective royalty diligence. were executed. suspend accomplishment agreements land renders the only developed oil leases of purpose uniformly applied within a if, performance vest condition for 3 words, appellee leases vest that the title, stated in the development, part a abandonment, 146. In order to appellant’s rights a well within the confer plain import compliance to contracts of stipulation operations, ripen an absolute ti for the lessor. but shall have stipulation provision of law is that partition stipulates p'rospect any time, prevented should to commence instant but are in the estate in the discovery of such con [40 months was of said land. The of the cases such instru for oil are where the undertaken reasonable agreement lessor hold that precedent discovery was stipulates land, the char giving into length C. ordinary no to com purpose * * Emery reason C. A. stipu pres case. must fail per a ti that par him be de or in it * Tex.) PETROLEUM CO. CORSICANA OWENS v. Brice, quotes Hodges very Appellee lease, also the tract that work should for it is of essence the small- be done. And App. 358, areWe Tex. Civ. S. W. imperative is the er the tract of land the more any com- unable to where can obtain drilling; prompt need for operations and efficient opinion The suit fort from the that case. rendering land, un- cumber the agricultural purposes. land- The available Parker and was based wife, paid a lease made royalty promptly itas owner can entitled to recited a consideration drainage danger be had. The conveyed by Brice, to them holding by delay, re- small is increased pe- lands, gas

(cid:127)sulting damage, susceptible of certain Brice the oil and cuniary compensa- measurement, is therefore not following among contains, others, ble. as to Ño lease should be construed stipulations: enable the has lessee who no consideration party “(1) to commence speculative In case second fails purposes, with- hold it months well from to the first the said within six doing stipulated do, out and what what he date, or unless he thereafter clearly contemplation was when he lessor party month to agreement.’ $4.00 month into the entered month, lease shall The second commenced, then until said well a lease ment of valuable consideration for * * * (5) become null and void. at obliga- way this character can in no affect party may all time remove diligence proceed tion of the lessee to reconvey property, its of premises performance of his of the contract. part, assigns, the first his heirs and course, might, by Of a lessee of a a hereby granted, there- and estate consideration, procure valuable liability after be relieved from further develop prospect fixed time within which to mineral grant and instrument.” lands, such is character of not the the contract under consideration.” -the It was further original payment In this case we think the time, to sur- should have was a consideration for sufficient lease and relieved render option-for year, and, the parties unfulfilled, the first since the moneys then due or conditions stipulated, a like null and lease should be from that time the amount a sufficient binding on either void and be extension of the lease without party, had been and that the during for paid months each three which it was them be held made to the lessors should as accepted, and, appel- opinion, stipulated damages our non- the whole rent, could, acceptance J., Garrett, lant C. fulfillment of the contract. beginning of each have hound to be the lease void. declared but, term, Pipe be- herself the end National & Line Co. case of Oil ing pay obligation upon Teel, Fourth first decided having rent, binding promise prose Appeals, and no error writ of Court cuted to anything been made to it to do further than Court. The Ap speaking James, J., de- $5 and overdue rent whenever it for the Court C. peals lease, (67 545) re to surrender ‍‌​​‌​​‌​​‌​​​​‌‌​‌‌​​​‌‌​​‌‌‌​‌‌​​​​‌‌​‌​‌‌‌‌​​​‍she was shows that cided W. paid, be- and con it when of $1 bound ginning tendered cites any quarter, prоvision: mean- unless tains operations drilling good begun “In case either had in to ex- time plore faith mining for coal for oil or not or other minerals land. prosecuted diligence begun and with due rehearing *8 in is insisted the motion for grant years date, from then this within two shall both prevent no grant immediately lan- because the contained this become to null void as may party parties; provided, second guage, continue same in full force “Or to year year, such, forfeiture from to quarter to and effect by paying longer, in advance at year by year, stipulated quarterly completed, residence, until until such well is or begun. grantors hereby shipments ments, from such mine have' The bind them- party have the to use suffi second cient chinery grantors tendered, when selves to expressly necessary gas and to run ma water any right renounce and disclaim adjoining this lease and leases owned on or by a forfeiture of this them, claim and ask also to remove all * * * property time. These instru at thereof, op- any provisions of the account convey may options be treated as ments or satisfactory a valuable and tion herein options, upon, they Until acted were аnces. or in the nature granted,” are consideration bound to options. in which form tendered, by they given the rent receive when is not are material. Tested options, they binding governing were rules on them. should permitted to a forfeiture. be declare cannot appellees, having been done under _ upon such the consideration is Where options is essential that some time It be be based? It cannot be contemplated can a contention fixed within which desig done, thing nated, be when no time is paid previously or for the annual amounts quarterly presume parties law will Neither can it be held rentals. Hanley a reasonable time. Wat intended nominal, nev- it is and has because be the 214] W. Va. 19 E. [39 538. Not terson per paid. made to- No move has been fixed these instruments for er no performance formance, but when is to take promise developing land, and, wards ever, place, tion could tional with contract have is left to the will and discre merely being op- rents future They part. second absolutely appellee, renewals, op there by entirely tional which were them, .indefinitely. defer it undertaking on the this, provides for and the courts would right, appellee, and it has the circumstances, these any quarter, forfeiture to declare a end of a reasonable time. It is true substitute tracts the con operations option. provide that were to refuse to renew SOUTHWESTERN REPORTER they diligence years, lands, an interest in two with due should become the second sult from but are mere contracts option, void, they may acquire for an but in same connection such party agreement by interest. A to obviate this re allowed naked which one promises year by paying year afterward, convey another an interest year money paid at the land in $100. advance each Thus it consideration of to be party delay performed performance other, acts to be does will the second such but which year year indefinitely, perform no ultimate not bind the other performance. may be, time that set for We-have no doubt en- cannot be forced. In ity instru consideration recited case there $1 is a want of mutual- support agreement. promises party an ments option have been sufficient to would The one years might something; promise to do absolutely and it for two be claimed the other dоes not years anything; when two were to do hence there is no support option support for an consideration to of other er to and each not another and it year, afterwards; hand, promise give void. and so on ever in oth On the other an option consideration. For be election, succeeding supported by words, independent are is valid if these transactions separate independent options, money example, be deemed if a sum of paid reasoning valid, option, promisee may, but this will itself depends do, because, all, enforce after each one the contract.” part, alone will of the second on the argument accompanying In the written fixed, performance time for and no renewals rehearing the motion for in this case indefinitely. may continued It is practically thing laying lump presents sum the same notation made grantee option long for cares to as the to extend so Court, refusing the writ of error run.” Staley Witherspoon, ease 156 S. W. the failure is true [9] While as follow's: upon of this limit have a time nature is one have Staley Witherspoon “W. H. et al. v. S.C. et upon ground which the courts Refused, upon ground al. No. 8303. the contract was- ourselves to the void,-we forfeited. frequently We do not commit them to be declared proposition the contract a limit ten to conceive that are not able was void an as held it was may years, during which be extend option, character, and was unilateral in its year quarter quarter and from Appeals. ed year, the Court of Civil Grant ing that it was' unilateral and a lessee, mere contract affect should for an have been enforceable as gas question. In oil and leases the time supported by such a contract because a consid impor secondary be a matter of limit should paid eration and limited to a definite time.” prod tance, reason of nature of the proposi- Nor do we commit ourselves to the speculator, by leasing pur An ucts. tion that a contract for an is void particular surrounding chasing lands paid. where the consideration has been We tract a which he contracted to drill think, accepted when Mrs. Owens the annual case, inas could rob the and each of the rentals under this products underlying of its and render the contract, firmly she was bound mining purposes. land wоrthless for In the during accepted the term for which she had quoted case it is said: rent, and there is no conflict between our real consideration “The of this instrument holding and the notation made the Su- was not the recited $1 nor the $100 that after preme Court, quoted Bookout, J., years might above. the two in order that might keep year, begin- Colquitt, but the Southern Oil Co. 28 Tex. Civ. prosecuting diligence ning for oil or with due of wells App. 292, declared a contract land; minerals in other permitted company which its the oil to remove words, and minerals clear terms of the property for oils machinery any time, and abandon the near future. This grant. According to the contract, void. contracts, optional it is left when We are aware of the fact that is a performed, is to be this consideration if ever. variety validity of a They absolutely admit withheld any power character, and for all time tract think we grantor upon per- to insist great weight authority inus sustains hold- words, formance. it is left with the ing *9 option that when the lessee has the at assigns begin- his vendee and to abstain from any refusing comply time of ning operations ing developed by long keep with the con- and to the lands from be- any surrеndering the vendor or one else lease, as tract and the without they fit, altogeth- withhold exploring developing land, the the con- er real consideration the which the con- The absolute con- unilateral, may tract the is * * be avoided at * were based. tracts gave respect of the and we do him not con- trol contracts the the performance subsequent’ of the ‘conditions by Supreme strue the note made Court any right the absence of in the vendors to insist Staley-Witherspoon intimating in the a Case as performance objectionable renders the same contrary holding. for begun; work the want of The was not equities ap- Appeals, exist in The Circuit Court of hence favor of in Smith They pellants. perform, were bound not Guffey, 109, 439, 202 Fed. v. 120 C. C. A. said: any matter abandon the at could these bound, time. Under law; nominal “A consideration is sufficient at circumstances, appellees were also not equity requires a substantial In consideration. they right had the to annul the con- cases the both of the is to secure tracts.” gas. $1, for lessor but not the oil and Supreme Court, passing pay per- this The In both the lessor covenants to over a centage stantial аnnual keted. any produced of and to make sub- judgment case, of the Court of affirmed Appeals, payments any gas mar- 591, 979, in 95 Tex. Civil consideration, however, As a for the saying: Gaines, J., right prospect gas until to enter oil or “Viewing agreements light found, the written in the the Indiana lessee has they parties, pass favorable to these most do $1. sum of He has not nominal entered into y. Tex.) 201 TRINITY & BY. CO. GEARY B. V. following paragraph any insert of the an additional covenants potestative: rights right. True, unless was lose which shows condition he that the this digging ‘Eighth. performs or For and of obli- of in consideration the condition he gations monthly payments; by making specified but entered into the defendant of by granted compel make suit either to said one is cannot him of dollar the lessor any dig is to lease at a well. The defendant to cancel the giving expiration by results, not after the of twelve months moreover the lessee. This any promise, plaintiff, only and first to make notice to failure part agrees a condition for a is a valuable con- substitution of this one dollar from the express provision options, covenant, whereby any Illinois ently, sideration deemed sufficient rights strued.’ The construction сontended for but also privileges granted the contract at and to annul be so could * * * obligation of these cannot Is this time. only appar- really, terminating lessees, however, given; it as be thus declared for the amount gives insignificant.” ? surrender clause enforceable The is too . any time, after the at before or them the expiration the Sun Long contract under consideration months, them- absolve the nine Company a 'bound Mrs. itself liability. they any ex- If further selves from lease, one-eighth they royalty produced, all the oil surrender this ercise they empowered option, as, to are at their absolute do, attempted at to 'drill time. and never just they thereafter as free from are contract -for the The also by obligation the lessor as enforceable quarterly. rent, The ten cents acre they True, must Indiana lessee. surrender, declaring perhaps Long judgment make actual but the con- for Mrs. obligation change purely cannot nominal nullity Caddo Oil & tract a was affirmed. equity. parties 'rights court of (La.) Mining Oil Co. 64 Co. Producers’ * ** complainants, long de- after That 684. gas prem- South. had discovered oil fendants testimony fact, Supreme in the case after ises—in made Court The notation stipulation so-called taken—filed a had been Staley refusing of error writ long- surrender, waiving expresses above, Witherspoon Case, some retroactively slightest value, cannot er complaint.” unilateral character perfect doubt as. lease bill of comparison A contract contract. Long 601, Co., La. South. v. Sun case, in the as set out expression find we W., 1191, Appeals, with the Court of Louisiana; Court Carpenter Case, supra, shows in the defendant, pleasure, can its will at end “The in that neither are similar at but withdraw plaintiff it specific provision where is sent the Greek Kalendar before is contained a rights possible for assert of ter- her justified in surrender would be the lessee minating great placed at a Plaintiff the lease. ing and we think this disadvantage. royalty She loses the Supreme Court’s memoran accounts one-eighth oil, her besides land remains it, unexplored. royalty, as we take dum. object executing the After lease. the chief a termine lease, let ob- the authorities review of all After a de- it remained to defendant alone to especially tainable, later bear- cases with the whether continue question, ing we are convinced length it would choose of time everything abeyance. disposed matter, properly remain in There we have drilling Mineral sufficient consideration. rehearing is overruled. motion optional contracts, are as to one of the optional taining options plaintiff mination minated from not a defendant, re- as to the other. consideration, left without asserting also ter- with the RY. CO. GEARY. & B. V. TRINITY ter- of the contract. The contract was (No. 344.) by plaintiff by her refusal tendered, Appeals (Court Paso. sum as there Texas. El defendant the Civil mutuality obligation. Rehearing The defendant Denied 1914. June year, say 1914.) July 2, the end could please,’ thereafter, T I shall “do” Separate — — Pleading (§ 53*) Petition years,’ say, can ‘Continue bound for he Counts. however, gave provided, less notice of not she of action two counts The cause set years, an- than 3 followed employé injury petition a thrown the ligence ployé fining years. delay waiting of 3 This almost stopping a car the sudden Payment an interminable time. cancel that specific neg averring train, act of insignificant. is true uncoupling an em cars stated that angle turning cocks and con ment is a valuable and to be held whereby air, brakes were sudden expression, as such. This is a and deemed mere ly abrupt brought applied the car sudden and adds to the want consideration. containing stop, the other al supplied *10 a want cannot be mere declara- Such operation negligence in the of han legation think the contract contains a tion. AVe equipment train, dling is the same. condition; potestative that one cannot retain cases, Pleading, Note.—For other [Ed. control, attempted absolute do, as the defendant Dig. Dig. 11A-117; Dec. § Cent. §§ 53.*] being subject possibility Sufficiency — objection — meeting — 330*) with the that the contract is 2. Trial (§ Verdict potestative. a matter of will with the Counts for Same Cause Ac Different agents and officers ‍‌​​‌​​‌​​‌​​​​‌‌​‌‌​​​‌‌​​‌‌‌​‌‌​​​​‌‌​‌​‌‌‌‌​​​‍of the defendants. On the tion. plaintiff hand, setting remained other has no before mentioned. She bound. She The counts same cause of anything paltry alleging specific negli action, save amount but one act of containing years gence, has wait sit a in and the other al possibly idly by negligence, legation lose of dollars. the verdict thousands servant’s interests, injury, application sudden As to "and his was virtual- action for causing suddenly ly impossibility brakes, stop, to annul the contract. the car to We throw topic & Key-No. Rep’r Series & Dig. Dig. * For other cases see same Am. section NUMBER Deu. Indexes

Case Details

Case Name: Owens v. Corsicana Petroleum Co.
Court Name: Court of Appeals of Texas
Date Published: May 30, 1914
Citation: 169 S.W. 192
Docket Number: No. 629. [fn†]
Court Abbreviation: Tex. App.
AI-generated responses must be verified and are not legal advice.
Log In