Consolidated Coal Co. v. Peers

Citations

• 150 Ill. 344
• 37 N.E. 937

Syllabus

<p>1. Contract — rule of interpretation. The great rule for the interpretation of covenants is, to so expound them as to give effect to the actual intent of the parties, collected, not from a single clause, but from the entire context. The scope and end of every matter are to be considered, and if these be satisfied, then is the matter itself and the intent thereof also satisfied.</p> <p>2. Same — liquidated damages. If, from the nature of the contract, the damages can not be calculated with any degree of certainty, or if there are peculiar circumstances contemplated by the contract, the stipulated sum will be held to be liquidated damages.</p> <p>3. Mining lease — construed as to time of payment by the lessee. A declaration alleged that by the terms of a mining lease the lessee agreed to begin mining coal within twelve months from its date, and to guarantee the lessor a yearly royalty of not less than $1200 after the expiration of twelve months from the date, and that if, after the expiration of one year, no coal should be mined, the lessee should pay monthly installments of $100 on its guarantee of $1200 a year, and said payments should be considered as advanced royalty; and said lessee was to have the right to mine coal sufficient to make the amount of coal mined equal to the amount of royalty paid, provided the royalty should not be less than $100 per month. The royalty to be paid was three-eights of a cent per bushel, and it was alleged that such royalty should be paid monthly, on the 20th day of the month, for coal mined the preceding month; Held, that the word “royalty” applied not only to the three-eighths of a cent per bushel to accrue from coal actually raised, but also to the monthly payments of $100 to accrue upon the guaranteed yearly royalty of not less than $1200.</p> <p>4. Same — whether a lease or mere license. An instrument under seal which invests the grantee or lessee with the “sole and exclusive right” to mine, and operate in coal, on certain la