Kachelmacher v. Laird

Citations

• 92 Ohio St. (N.S.) 324

Syllabus

<p>Contracts — Implied covenants — Oil and gas lease — Written conditions control, when — Forfeiture for delay in drilling — Defeated by payment, and lease continued, when — Deposit in bank payment to lessor, when — Effect of refusal to withdraw same.</p> <p>1. There can be no implied covenants in a contract in relation to any matter that is specifically covered by the written terms of the contract itself.</p> <p>2. There being an express condition written in an oil and gas lease as to the right of the lessor to declare forfeiture thereof for delay in drilling the first well, no covenant authorizing forfeiture for such delay can be implied in direct opposition to the plain provisions of the written contract.</p> <p>3. Where a lease of land for ten years for oil or gas purposes provides that the lease shall be void if no well is drilled within four months from the date thereof unless the lessee shall pay the lessor the sum of fifty dollars for each and every year that the drilling of such well is delayed, payment of such sum by the lessee to the lessor, according to the terms and provisions of the lease, prevents forfeiture and continues the lease in force during the year for which such payment is made.</p> <p>4. If such lease specifically provides that the amount to be paid for delay in drilling may be paid by the lessee to a bank named in the lease to the credit of the lessor, and payment is made in accordance with the terms of the lease, the lessor cannot avoid the effect of such payment by refusing to withdraw the sum from the bank to which it was paid by his direction. When so paid said fund became the property of the lessor and can be lawfully paid to no one except upon his order.</p>