Harter v. Edwards

Citations

• 108 Kan. 346
• 195 P. 607
• 1921 Kan. LEXIS 45

Syllabus

<p>SYLLABUS BY THE COURT.</p> <p>Oil and Gas Lease — Default in Payment of Rentals — Forfeiture•— Cancellation. In an oil and gas lease given for a term of years it was provided that if a well was not commenced within a year, the lease should terminate unless the lessee within that period paid a stipulated rental by check mailed with postage prepaid at or to a certain bank for the lessor’s credit, and the bank was made the agent of the lessor to accept the rental. At the expiration of a year no well had been commenced and when the lessor made inquiry at the bank he was informed that the rental had not been paid or placed to his credit. The lessor brought action to cancel the lease and to obviate the effect of nonpayment, one of the lessees who had a checking account in the bank offered testimony to the effect that he had told the cashier of the bank that if the rental was not paid by the company he wanted to pay it out of his account. The lessor had no knowledge of the statement and gave no assent to the arrangement. No check was given upon the lessee’s account nor were any of his funds set apart to pay the rental. Held, that the statement and arrangement did not constitute a payment of the rental nor prevent the forfeiture of the lessee’s rights under the lease for nonpayment.</p>