[DOWNLOAD] "Mcdaniel v. Hager-Stevenson Oil Co." by Supreme Court of Montana # Book PDF Kindle ePub Free
eBook details
- Title: Mcdaniel v. Hager-Stevenson Oil Co.
- Author : Supreme Court of Montana
- Release Date : January 08, 1926
- Genre: Law,Books,Professional & Technical,
- Pages : * pages
- Size : 68 KB
Description
Oil and Gas ? "Or" and "Unless" Leases ? Termination ? Contracts. Contracts ? When not Subject to Construction. 1. Where a contract is plain and clear in its terms, neither interpretation nor construction is permissible, nor may resort be had to extrinsic circumstances under the pretense of ascertaining its meaning. Oil and Gas ? "Or" and "Unless" Leases ? How Terminated. 2. Under an "or" lease of oil lands, the lessee must either drive a well within the exploratory period fixed or pay the rental prescribed; the forfeiture clause therein is for the benefit of the lessor, who if he desires to insist upon a forfeiture, must exercise his option and declare the lease forfeited; under an "unless" lease the lessee must commence to drill a well within a certain period or the lease becomes null and void unless he pays the lessor a certain amount per year in advance for each additional year until a well is commenced, and under this type of lease failure to drill or pay, ipso facto, terminates the lease, affirmative action on the part of the lessor to declare it forfeited being unnecessary. Same ? Contracts Optional in Respect of One Party ? Construction. 3. When a contract is optional in respect to one party, it is to be construed strictly in favor of the party that is bound and against the one who is not bound. Same ? Leases ? Construction ? Time Essence of Contract. 4. Oil and gas leases must be liberally construed in favor of the lessor and strictly against the lessee, and time is of the essence of such contracts. Same ? Termination of "Unless" Lease ? Lessor not Required to Declare Lease Forfeited. 5. Where the owner of land had entered into an "unless" oil and gas lease (see par. 2 above), the consideration paid being $1.00, and the lessee neither drilled a well nor paid rentals but permitted the lease to expire by limitation, his interest in the land ceased automatically without formal declaration of forfeiture by the lessor, and the latter was free to grant a new lease upon the same land to another lessee. - Page 357