Childs v. Gillespie

Citations

• 147 Pa. 173
• 23 A. 312
• 1892 Pa. LEXIS 806

Syllabus

<p>Oil lease — Option.</p> <p>An oil lease of a portion of the lessor’s farm contained the following clause : “It is further agreed that, after the first well is completed, provided it is a paying well, said second party (Childs), shall have the privilege of buying or leasing the unleased remainder of said Schuler’s farm, provided he and said Schuler can agree upon terms within six months.”</p> <p>Held, that the clause did not confer an option in the ordinary sense of the word, as it provided no terms upon which a purchase or leasing could be made.</p> <p>Contract — Offer by telegraph — Acceptance.</p> <p>The above lease was executed on December 26,1889. On April 5,1890, Schuler wrote to Childs: “I am offered $175 an acre and one sixth royalty. As I agreed to give you first chance I want an answer by the 9th, or I will go ahead and lease.” The letter did not reach Childs until the 10th. On April 7, Schuler telegraphed to Childs : “Offered $7,000 and one sixth, remainder of farm. Answer immediately. ” meaning that he had been offered $7,000 and a royalty of one sixth for the remainder of the farm, and that Childs could have it at that price if he answered immediately. The telegram was received by Childs on the forenoon of the same day. On April 8, Schuler sold to other parties. On April 9, Childs learned of the sale and sent a letter accepting the offer in the telegram. Subsequently he tendered the purchase money to Schuler. Held, that the acceptance was too late.</p>