Murray v. Barnhart

Citations

• 117 La. 1023
• 42 So. 489
• 1906 La. LEXIS 813

Syllabus

<p>1. Mines and Minerals — Lease—Indivisibility.</p> <p>Where the obligation of one party to a contract is indivisible, the corresponding obligation of the other party is necessarily so likewise. Thus the obligation of the lessor of a tract of land is indivisible among his heirs when the consideration of the lease is the completion of one well for the exploration of the land for oil and gas.</p> <p>2. Same — Action to Rescind.</p> <p>A petition which alleges that the defendant entered into a contract to complete a well within one year, and alleges that at the time of the filing of the suit, four years after the date of the contract, the defendant had not yet even made preparations for commencing the well, and which prays that the contract be avoided, sots forth an action for rescission of contract.</p> <p>3. Same — Consideration—Sufficiency.</p> <p>The civil law, differently from the common law, requires that the consideration of a contract be serious, and not out of all proportion with the value of the contract. Hence, in a contract of more than $100 in value, the traditional $1 consideration of a common-law contract is looked upon by the civil law as not being a serious consideration; that is to say, as not being any consideration at all. And the same may be said of $2 for the privilege of re-, tiring at any time from such a contract. Therefore, in an oil and gas lease, the obligation of the lessee to complete one well within one year will be held to be purely potestative, and as such to entail the nullity of the contract, where he at the same time reserves to himself the right to retire from the contract at any time on paying $2. and this notwithstanding that the consideration of the contract is stated to be $1 cash in hand paid, receipt whereof is acknowledged.</p> <p>4. Same.</p> <p>I-Ioussiere-Latreille Oil Go. v. Jennings-Heywood Oil Syndicate, 38 South. 932, 115 La. 107, distinguished..</p> <p>5. Same — Construction — Performance of Conditions — Penalties.</