Citations
- 100 F.2d 865
Full opinion text
DEAVER, District Judge.
Appellants on June 11, 1937 executed to appellee a gas and oil lease covering certain described land in the State of Texas, and simultaneously entered into a written contract with appellee. The lease was attached to the contract and, as provided by the contract, deposited with a bank as escrow agent.
The contract provided that lessors should furnish to lessee an abstract of title within ten days from the date of contract; that lessee should have ten days from date of delivery of the abstract to examine it and make known its objections, if any; that lessors should have ten days from the date objections were made known to them to cure the objections; that lessee, within ten days from the date the abstract was made to reflect good and merchantable title, should pay to lessors or deposit to their credit in said bank the sum of $5 per acre; that lessee should spud in a well on the land within seventy days from the date of the contract; that if lessors furnished the abstract showing good and merchantable title and lessee failed to pay or deposit said money, then $5 per acre should be considered liquidated damages; that, if lessee paid or deposited said money, then the escrow agent should deliver the lease to lessee when the well had been spudded in, within the time provided.
Lessors within the time allowed furnished an abstract. Lessee within the time allowed made several objections in writing and stated what it w