MacDonald v. O'Neil

Citations

• 21 Pa. Super. 364
• 1902 Pa. Super. LEXIS 358

Syllabus

<p>. Oil and gas lease — Assignment of lease — Liability of assignee for royalties.</p> <p>The assignee for the lease of land for oil or gas production is liable to the lessor for the payment of all rent or royalties which accrue while he holds an assignment of the lease.</p> <p>A lessee in an oil lease will not be permitted during his possession and beneficial enjoyment of the leased premises, to allege in defense to an action for the stipulated rent that the lessor under whom he entered had not title at the time of his entry.</p> <p>Where oil land is sold for taxes, and before the expiration of the period for redemption, the owner executes an oil lease, and thereafter another person purchases and takes title to the land by deeds from the purchasers at the tax sale, which deeds are made subject to the oil lease, and such person then takes an assignment of the oil lease, he cannot set up the title to the land which he has obtained by the deeds, against the lessor in an action for royalties under the lease.</p> <p>Letters of attorney — Special power — Principal and agent.</p> <p>Letters of attorney are strictly interpreted and the authority is never extended beyond that which is given in terms, or that which is necessary and proper for carrying the authority so given into full effect.</p> <p>A letter of attorney to execute an oil lease will not be extended so as to include authority to the attorney to bind his principal by a recognition of an outstanding title asserted by a third person.</p> <p>A special power must be strictly pursued, and whoever deals with an agent constituted for a special purpose deals at his peril when the agent passes the precise limits of his power.</p>