Springer v. Citizens' N. Gas Co.

Citations

• 145 Pa. 430
• 22 A. 986
• 1891 Pa. LEXIS 680

Syllabus

<p>(a) An oil- and gas-lease contained a covenant that the lessee should complete a well within a certain time, or thereafter pay to the lessors certain sums semi-annually, until such completion; and stipulated that the failure to complete said well, or to make said payments as covenated, should render the lease null and void and of no effect between the parties:</p> <p>1. The forfeiture clause being inserted in the interest of the lessors, they had the option, upon a default by the lessee, either to assert a forfeiture, or to affirm the continuance of the contract; and when they adopted the latter alternative, the lessee could not set up a forfeiture, to the action in affirmance of the lease: Ray v. N. Gas Co., 138 Pa. 576.</p> <p>2. An allegation that “ soon ” after the lease was executed, it was “ discovered that the territory was worthless for either oil or gas,” and that the “ leased land did not contain either gas or oil in paying quantities at the time ” of execution, is insufficient as a defence to a summary judgment in an action in affirmance of the continuance of the lease.</p> <p>3. An alleged oral understanding between the lessee and one only of the several lessors, as to the legal effect of a forfeiture clause in the contract, cannot affect the liability of an assignee of the lease thereunder, especially when the assignee took the assignment thereof without any knowledge of such understanding.</p> <p>4. The lessors being an adult, and the guardian of certain minors, a declaration by the guardian in relation to the lease, that the same was ended and void, and the lessors had no claim thereunder, was without effect towards relieving the assignee of the lease from liability for failure to perform the covenants of the lessee.</p>