Full opinion text
COLLINGS, Justice. This suit was instituted as a Bill of Review, the object of which was to set aside a judgment rendered in the 101st Judicial District Court of Dallas County, Texas, on September 19, 1936, in Receivership Cause No. 95715E, styled Mrs. Virginia Sanders, et al. v. J. E. Stack, et al. This suit was originally filed in the District Court on January 17, 1939 by H. C. Mauldin and wife, Buda Mauldin, and subsequently various parties who, together with the Mauldins, are appellees herein, filed pleadings setting up claims. Appellees sought in this suit against appellants to recover the title and possession of the ⅞ths working interest in and to a producing 15 acre oil and gas lease in Gregg County, Texas, together with an accounting for all of the production from the lease since it first began to produce oil on September 3, 1931. The accounting phase of the case was severed from the title issues which were tried before a jury on November 1, 1949. Based upon the verdict of the jury, the District Court, on March 4, 1950, rendered judgment in favor of appellees for title and possession to the oil and gas lease interest in question. From such judgment this appeal is brought. A former appeal of this case from a judgment of the District Court dismissing the suit is reported in Mauldin v. American Liberty Pipe Line Co., Tex.Civ.App., 185 S.W.2d 158. The statement of the reported case is referred to for the purpose of supplementing the statement of the pleadings and facts of this case, insofar as same are applicable. The pleadings are essentially the same. The pleadings and facts of the instant case are so extended and complicated that it is difficult to confine them to a reasonable length, and since it was held on the prior appeal that appellees were entitled to a trial'on the fact issues, we will here deal principally with such issues. In 1930, Mesdames Virginia Sanders, J. M. Stinnette and George E. Light entered into a verbal agreement to purchase for their joint use and benefit the oil and gas lease here involved; each agreed to pay $50 on the purchase price and it was understood that each was to have an equal proportional interest in the lease; Mrs.' Sanders was to negotiate the transaction, pay the purchase price and take the title in her own name as a matter of convenience and after the completion of the transaction, the other two were to pay their part of the consideration. In compliance with the agreement, Mrs. Sanders took title to the lease in her own name and paid the consideration therefor. At the time of the purchase the lease was in nonproducing oil territory. On April 17, 1931, Mrs. Virginia Sanders, joined by her husband, J. A. Sanders, entered into the following written agreement with F. A. Perrenot, H. C. Mauldin and wife, Buda Mauldin who had no notice of the interest of Mrs. Stinnette and Mrs. Light therein, for the development of the leasehold for oil and gas : “State of Texas County of Gregg “This Instrument Evidences: “That F. A. Perrenot, and H. C. Mauldin, and wife, Buda Mauldin, hereinafter called party of the first part, of Bexar County, Texas, and Mrs. Virginia Sanders, joined by her husband, J. A. Sanders, hereinafter called parties of the second part, of Dallas County, Texas, have contracted and agreed with each other as follows: “1. Party of the second part represent that they are the owners- of the mineral estate, including oil and gas thereon, within, upon and under that certain piece, parcel or tract of fifteen (15) acres of land, more or less, being described by metes and bounds as follows: “A part of a section of one hundred seventy (170) acres out of said survey, as described in an oil and gas lease from J. B. Doby and wife, and R. W. Calloway and wife to W. W. Lechner, which lease is recorded in Vol. 62, pages 49-51, in the Deed Records, of Gregg County, Texas, the part of said one hundred seventy (170) acre tract affected hereby being the north fifteen (15) acres of the north seventeen and one-half (17½) acres of the West twenty-seven and one-half (27½) acres of the East one-half of the above described one hundred seventy (170) acre tract. “2. The first party being desirous of obtaining the title to said lease, the second parties agree to convey it to him upon the following terms and conditions : “The first party may enter into possession thereof and they hereby contract and agree to drill a well for oil on said land, designated herein as ‘first well,’ at such point thereon as may be selected by party of the first part, to the Woodbine sand, unless oil is found thereby at a shallower depth, and to that end to have a derrick thereon within thirty (30) days from date hereof, and to begin drilling operations thereon within sixty (60) days from this date, same to be so done without cost or expense to parties of the second part; performance of these terms are conditions precedent to any liability of the second parties. “3. Upon the completion of such ‘first well/ and in the event oil and gas or either is produced therefrom in paying quantities, and when and as same or either is sold, first party agrees to pay to second party the sum of $15,000.-00 out of one-fourth of the first proceeds thereof, as such proceeds accumulate and to authorize the purchaser or purchasers of such oil or gas to pay such sums directly to the second party, and the balance of such proceeds, or so much thereof, as may be required by party of the first part, shall be and remain available to, and shall be payable to or on the order of, party of the first part for the purpose of and in the drilling of other well or wells on said land by or under the supervision of party of the first part, and party of the first part shall have the right to drill other well or wells on said land to the extent expedient and authorized by law, and therein to use and expend so much of said balance of such proceeds as may be proper and necessary. When and as and to the extent said balance of such proceeds or any part of same is not necessary or required by party of the first part in and for the drilling of such other well or wells, one-half (½) of such excess shall then be paid to party of the first part as further consideration for the purchase hereof. “4. When said ‘first well’ has been completed as herein provided, and in the event oil and gas or either is produced therefrom in paying quantities, the title to said mineral estate on said land now owned by party of the second part shall thereupon vest, and same is in that event conveyed by party of the second part to party of the first part, hut with the reservation that first party shall in turn pay to second party, a sum equal to one-half of all profits received by him from the operation of said wells, as same are received. “5. Party of the second part, or either of them, either by themselves or authorized agent or representative, shall at all reasonable times have access to the record memoranda or report of the log of any well or wells drilled hereunder and other books, records and memoranda made or kept by party of the first part concerning or in any way pertaining hereto. “6. No partnership is formed by the execution of this agreement, the same being intended as a conditional contract for the assignment of the lease mentioned, and it is expressly understood that the second parties retain no right to direct the manner and means, of performance by the first party of the covenant and conditions herein contained. “Witness our hands in duplicate originals on this the 17th day of April, 1931. /s/ Henry C. Mauldin Mrs. Buda Mauldin F. A. Perrenot Party of the First Part Mrs. Virginia Sanders J. A. Sanders Parties of the Second Part.” On April 18, 1931, F. A. Perrenot and the Mauldins entered into a written agreement with one J. E. Stack in which they assigned to him the leasehold in question under terms and conditions similar to those provided in the assignment from the Sanders to them, except that Stack agreed to place a derrick on the lease within 29. days, to commence drilling operations within 59 days and to proceed to drill the “first well” thereon, to pay Perrenot and the Mauldins $15,000 out of ¼th of the first proceeds of the first well, the balance of such proceeds or so much as was necessary, to be retained and used by Stack for the purpose of drilling other wells on the lease; that %ths of all excess profits be paid to Perrenot and the Mauldins. This assignment was filed and recorded in the Deed Records of Gregg County on July 15, 1931. Drilling was started on the lease and by July 25, 1931 the first well had been drilled to a depth of about 2800 feet but had not been completed as a producing well. In order to raise money with which to pay accrued bills and to complete the well, J. E. Stack, on July 25, 1931, with the approval and ratification of Perrenot, the Mauldins and the Sanders, sold a $40,000 oil payment to Charles Pettit. It was specifically provided in the ratification of the assignment from Stack to Pettit that Stack was to complete the well in accordance with the original contracts of April 17, 1931 and April 18, 1931 and that the failure to do so should restore to Mrs. Virginia Sanders and her husband, J. A. Sanders, all right and title to the leasehold interest; the Sanders in such instrument likewise specifically ratified the original contracts above mentioned. This oil payment was later sold by Pettit to the Producers Investment Corporation. On August 20, 1931, J. E. Stack, in order to raise additional money with which to complete the well, with the approval and ratification of Perrenot, the Mauldins and the Sanders, sold another $40,000 oil payment to Producers Investment Corporation. In their ratification of this assignment, the Sanders again specifically ratified the original contracts of April 17, and April 18, 1931. The two oil payment assignments and the ratifications thereof, insofar as the terms are material hereto, are set out as follows: “First Oil Payment — J. E. Stack to Charles Pettit “State of Texas County of Gregg “Know All Men by These Presents: That, “Whereas, on the 3rd day of October, 1930, a certain oil and gas mining lease was made and entered into by and between J. B. Doby, et al., lessors, and W. W. Lechner, lessee, covering the following described land situated in Gregg County, Texas, to-wit: (Description of the lease in question) “Now, therefore, for and in consideration of the sum of Ten Dollars ($10.00) and other good and valuable consideration in hand paid by Chas. Pettit, the receipt of which is hereby acknowledged, I, J. E. Stack have sold, conveyed, assigned and delivered and by these presents do sell, convey, assign and deliver unto said Chas. Pettit, his heirs, executors and assigns seven thirty-second (7/32) of all of the first oil in under and that may be produced, saved and sold from the North 15 acres of the North 17½ acres of the West 27½ acres of the east half (E½) of the aforesaid 170 acre tract until the said Chas. Pettit has received therefrom the sum of Forty Thousand Dollars ($40,-000.00). It is understood that the payment of no part of said Forty Thousand Dollars ($40,000.00) is a personal obligation of the assignor herein, but that said sum shall be due and payable to the said Chas. Pettit only out of seven thirty-seconds (7/32) of the first oil produced, saved and sold from said land,, if as and when said oil is produced and saved and sold; and that the said seven, thirty seconds (7/32) of the oil produced, saved and sold from said land shall be paid out of and is a part of the seven-eighths (⅞) working interest oil, and that the same shall be paid to the said Chas. Pettit without any cost or expense whatsoever in the same manner as the lessors’ one-eighth (⅛) royalty interest provided for in said lease. “To secure the payment to the said Chas. Pettit of said Forty Thousand Dollars ($40,000.00) out of oil as herein provided, the assignor herein grants, unto the said Chas. Pettit a lien on an undivided one-fourth (¼) interest in said oil and gas lease and leasehold estate and rights thereunder and personal property equipment and fixtures now-on and which may hereafter be placed on said premises. * * * * * * “The assignor binds and obligates himself to comply with all of the terms of the aforesaid lease, and to develop and operate the same for the production of oil in a diligent and workmanlike manner, it being expressly agreed that if the assignor fails to perform such obligations or ceases to produce oil from said tract once production is obtained, the assignee herein shall have the right to take over the operation and management of said lease and to operate the same until said Forty Thousand ($40,000.00) is fully paid. “This assignment shall be sufficient authority for any person, pipe line company or concern which may run the oil from said property, if as and when produced to pay to the said Chas. Pettit the proceeds of seven thirty-seconds (7/32) of the first oil produced until the said Chas. Pettit has received Forty Thousand Dollars ($40,000.00). “For the consideration herein stated, I, J. E. Stack, do covenant that I am the lawful owner of the rights and interests herein conveyed, and that I have good right and authority to make this conveyance and that the rights and interests herein conveyed are free and clear of encumbrances and that I will warrant and forever defend the title to same unto the said Chas. Pettit, his heirs and assigns, against all persons whosoever lawfully claiming or to claim the same or any part thereof. “Witness my hand this the 25th day of July, 1931. J. E. Stack.” The above oil payment was transferred, sold and conveyed by Pettit to Producers Investment Corporation on August 1, 1931. “First Ratification “Dated: July 27, 1931; Filed August 3, 1931, at 8 A.M.; Recorded: Vol. 96, page 443; Deed Records; Gregg County, Texas. “Mrs. Virginia Sanders, et al, to Chas. Pettit, et al File No. 22081 “State of Texas County of Gregg “Know all Men by these Presents: “Whereas, on October 3, 1930, a certain oil and gas lease was made and entered into by and between J. B. Doby, et al, lessors, and W. W. Lechner, lessee, covering the following described land situated in Gregg County, Texas, to-wit: (Description of lease in question) “Whereas, on April 17, 1931, Mrs. Virginia Sanders, the owner of said oil and gas lease and rights thereunder, insofar as the same covers the north 15 acres of the north 17¼ acres of the west 27½ acres of the east half (E½) of the above described 170 acre tract, joined by her husband, J. A. Sanders, did enter into a contract in writing with F. A. Perrenot, H. C. Mauldin and wife, Buda Mauldin, the said Mrs. Virginia Sanders and husband, J. A. Sanders, being referred to in said contract as parties of the second part and the other parties being referred to as parties of the first part, which contract provided for the assignment of said 15-acre oil and gas lease to parties of the first part by parties of the second part and the operation thereof, after parties of the first part had drilled a well on said 15-acre tract, said contract being instrument No. 20151 in the office of the County Clerk in and for Gregg County, Texas, to which reference is here made, and, “Whereas, by instrument dated April 18, 1931, H. C. Mauldin and wife, Buda Mauldin, and F. A. Perrenot, as parties of the second part, did enter into a contract in writing with J. E. Stack, therein called party of the first part, in which the said J. E. Stack as party of the first part agreed to drill a well on said 15-acre tract and providing for the operation and management of said lease by the said J. E. Stack said contract being instrument No. 20647 in the office of the County Clerk of Gregg County, Texas, to which reference is here made, and “Whereas, on July 7, 1931, H. C. Mauldin and wife, Buda Mauldin, did enter into a contract with F. A. Perre-not determining and fixing the rights of said parties under the contract with J. E. Stack last above mentioned which instrument is file No. 20648 in the office of the County Clerk in and for Gregg County, Texas, to which reference is here made, and “Whereas, under and by virtue of the aforesaid oil and gas lease and mesne conveyance thereof, particularly the first two contracts hereinabove referred to the said J. E. Stack has undertaken to drill and is now drilling a well for oil and gas on the above described 15-acre tract, and, for the purpose of enabling the said J. E. Stack to finance the drilling and completion and operation of said lease the said J. E. Stack has by an instrument in writing dated July 25, 1931, transferred, assigned and conveyed unto Chas. Pettit of Dallas County, Texas, one-fourth (¼) of seven eighths (⅞) of the first oil produced, saved and marketed from said 15-acre tract until the said Chas. Pettit or his assigns have received therefrom the sum of Forty-Thousand Dollars ($40,000.00) and the undersigned, owners of interest in said lease and rights thereunder, desire to ratify and confirm said sale to the said Chas. Pettit and the conveyance to the said Chas. Pettit; “Now, therefore, in consideration of the promises and of the consideration paid by the said Chas. Pettit to the said J. E. Stack, which run to the mutual benefit of the undersigned, the undersigned and each of them do hereby approve said sale and assignment to Chas. Pettit; but it is particularly understood that the said Mrs. Virginia Sanders and husband, J. A. Sanders, assume no responsibility for the drilling or completion or operation of said well or other wells, nor for the performance by the other parties hereto of any other of their obligations under said contract, and with the understanding and in consideration of the agreement by the said J. E. Stack to complete said well in accordance with the original contracts of April 17, 1931, and April 18, 1931, failure to do which shall restore to Mrs. Virginia Sanders and husband, J. A. Sanders, all rights existing under their said contract of April 17, 1931. “For the purpose of assuring and protecting the said Chas. Pettit, his heirs and assigns, in the property rights and privileges conveyed to him by the said J. E. Stack, Mrs. Virginia Sanders and husband, J. A. Sanders, do by these presents particularly ratify their aforesaid contract with H. C. Mauldin and wife, Buda Mauldin, and F. A. Per-renot of April 17, 1931; and do further ratify and in all respects approve said contract of April 18, 1931, by the said H. C. Mauldin and wife, Buda Mauldin and F. A. Perrenot with the said J. E. Stack; and in view of the said J. E. Stack having now drilled the aforesaid well to an approximate depth of 2,800 feet, and being now sure of complete and entire financing thereof, we, Mrs. Virginia Sanders and husband, J. A. Sanders, do by these presents transfer, assign, convey and set over the aforesaid 15-acre lease and rights thereunder or incident thereto unto the said J. E. Stack, his heirs, executors, and assigns, subject only to the rights of the parties hereto and of Chas. Pettit, his heirs and assigns under and ‘by virtue of the said contract of April 17, 1931, April 18, 1931, and July 25, 1931, respectively. “To have and to hold unto the said J. E. Stack, and all other parties to said contracts and assignments as their respective interests and the interest of the said Mrs. Virginia Sanders under said contract appear. “Witness our hands this the 27th day of July, 1931. Mrs. Virginia Sanders J. A. Sanders H. C. Mauldin F. A. Perrenot H. C. Mauldin J. E. Stack.” by Buda Mauldin Agent and Atty in Fact. Mrs. Buda Mauldin “Second Oil Payment, August 20, 1931 J. E. Stack to Producers Investment Corporation File No. 23661 “State of Texas County of Gregg: “Know All Men by these Presents: That, “Whereas, on the 3rd day of October, 1930, a certain oil and gas mining lease was made and entered into by and between J. B. Do'by, et al., lessors, and W. W. Lechner, lessee, covering the following described land situated in Gregg County, Texas, to-wit: (Description of lease in question) “Whereas, said lease and all rights thereunder or incident thereto, insofar as the same covers and affects the interests and rights herein conveyed, are now owned by J. E. Stack, subject only to a certain oil payment and other rights conveyed by the said J. E. Stack to Chas. Pettit to be paid out of one-fourth (½) of seven-eighths (⅞) of the oil produced from said 15 acres hereinafter described, as fully appears by an assignment to the said Chas. Pettit dated July 25, 1931, and subject to the rights of Virginia Sanders and husband, J. A. Sanders, F. A. Perrenot, and H. C. Mauldin, and wife, Buda Mauldin, under two contracts of date April 17, 1931, and April 18, 1931; and, “Whereas, the said J. E. Stack has completed the drilling of a well on the portion of the 15 acre tract of land hereinafter described to the top of the sands, operations having been begun by the said J. E. Stack on the 4th day of May, 1931, and thereafter diligently prosecuted; and, “Whereas, it has become necessary for the said J. E. Stack to obtain additional funds for the completion and equipment of said well and the payment of all outstanding bills pertaining thereto, and the said J. E. Stack has agreed to assign the interest herein conveyed for that purpose; “Now, therefore, for and in consideration of the sum of Ten Dollars ($10.00) and other good and valuable consideration in hand paid by Producers Investment Corporation, the receipt of which is hereby acknowledged, I, the said J. E. Stack, the grantor, have sold, conveyed, assigned, and delivered, and do by these presents, sell, convey, assign and deliver to said Producers Investment Corporation, a corporation of Dallas County, Texas, seven thirty-seconds (%a) of all of the first oil in, under and that may be produced, saved and sold from the North 15 acres of the North 17½ acres of the West 27½ acres of the East half (E½) of the aforesaid 170 acre tract, until the said Producers Investment Corporation has received therefrom the sum of Forty Thousand Dollars ($40,000.-00). It is understood that the payment of no part of said Forty Thousand Dollars ($40,000.00) is a personal obligation of the grantor herein, but that said sum shall be due and payable to the said Producers Investment Corporation only out of seven thirty-seconds (7/32) of the first oil produced, saved and sold from said land, if, as and when said oil is produced, saved and sold; and that the said seven thirty-seconds (7/32) of the oil produced, saved and sold from said land shall be paid out of and is a part of the seven-eights (⅞) working interest oil and a part of the interest of the grantor herein in said working interest, and that the same shall be paid to the said Producers Investment Corporation without any cost or expense whatsoever, in the same manner as the lessor’s one-eighth (⅛) royalty interest provided for in said lease. “To secure the payment to the said Producers Investment Corporation of said Forty Thousand Dollars ($40,000.-00) out of the oil as herein provided, the grantor herein grants unto the said Producers Investment Corporation a lien on said oil and gas lease and leasehold estate and rights thereunder and personal property, equipment and fixtures now on and which may hereafter be placed on said premises. “The grantor herein, the said J. E. Stack, binds and obligates himself, his heirs and assigns, to comply with all of the terms of the aforesaid lease and with a certain contract heretofore made on April 17, 1931, between J. A. Sanders and wife and F. A. Perrenot, and H. C. Mauldin and wife, and with a certain other contract dated April 18, 1931, between J. E. Stack and F. A. Perrenot, H. C. Mauldin and wife, Buda Mauldin, and with all lawful governmental regulations, and to finally and immediately complete the said well and equip the same, and to develop and operate the same for the production of oil, all in a diligent and workmanlike manner, it being expressly-agreed that if the said J. E. Stack fails to perform such obligations or ceases to produce oil from said tract once production is obtained, the said Producers Investment Corporation shall have the right to take over the operation and management of said lease and to operate the same, and sell the oil produced therefrom and apply the same on said Forty-Thousand Dollars ($40,000.00) until the said Forty-Thousand Dollars ($40,000.00) is fully paid. The said J. E. Stack further covenants that no oil will be sold or contracted to be sold at less than the posted prices of the major companies in the field without the written consent of Producers Investment Corporation or its assigns. The said J. E. Stack further covenants with the Producers Investment Corporation and its assigns, that the grantor is the lawful owner of said lease and leasehold and personal property, and that the grantor is the lawful owner of the rights and interests herein conveyed, and that the said lease and leasehold and the said rights and interests are free and clear of all encumbrances, and that the grantor has good right and authority to make this conveyance, and will warrant and forever defend the title to same unto the said Producers Investment Corporation, its successors and assigns, against all persons lawfully claiming or to claim the same or any part thereof. Said J. E. Stack further agrees that if he fails to operate and produce oil from said well with diligence and prudence at any time after production is obtained, or fails in any other particular to observe the covenants herein, all of the oil produced from said lease or the proceeds thereof shall be applied to the payment of said Forty Thousand Dollars ($40,000.00) until the same is fully satisfied. “This assignment shall be sufficient authority for any persons, pipe line company, or concern which may run the oil from said property, if as and when produced, to pay to the said Producers Investment Corporation and its successors and assigns the proceeds of said seven thirty-seconds (7/32) of the first oil produced until the said Producers Investment Corporation has received Forty-Thousand Dollars ($40,000.00). “Witness my hand this the 20th day of August, A. D. 1931. J. E. Stack.” “Second Ratification, August 20, 1931. “J. E. Stack to Producers Investment Corporation File No. 23662 “Whereas, on October 3, 1930, a certain oil and gas lease was made and entered into by and between J. B. Doby, et al., lessors, and W. W. Lechner, lessee, covering the following described land situated in Gregg County, Texas, to-wit: (Description of lease in question) “Whereas, on April 17, 1931, Virginia Sanders the owner of said oil and gas lease and rights thereunder insofar as the same covers the north 15 acres of the north 17½ acres of the west 27½ acres of the east one-half (E½) of the above described 170 acre tract joined by her husband, J. A. Sanders, did enter into a contract in writing with F. A. Perrenot, IT. C. Maul-din and wife, Buda Mauldin, the said Virginia Sanders and husband, J. A. Sanders, being referred to in said contract as parties of the second part and the other parties being referred to as parties of the first part, which contract provided for the assignment of said 15 acres of oil and gas lease to parties of the first part by parties of the second part and the operation thereof after parties of the first part had drilled a well on said 15 acre tract said contract being instrument No. 20151 in the office of the County Clerk in and for Gregg County, Texas, to which reference is here made. “Whereas by instrument dated April 18, 1931, IT. C. Mauldin and wife, Buda Mauldin, and F. A. Perrenot as parties of the second part did enter into a contract in writing with J. E. Stack therein called party of the first part in which said J. E. Stack as party of the first part, agreed to drill a well on said 15 acre tract and providing for the operation and management of said lease by the said J. E. Stack, said contract being instrument No. 20647 in the office of the County Clerk of Gregg County, Texas, to which reference is here made, and “Whereas, on July 7, 1931, H. C. Mauldin and wife, Buda Mauldin, did enter into a contract with F. A. Perre-not determining and fixing the rights of said parties under the contract with J. E. Stack last above mentioned which instrument is numbered 20648 in the office of the County Clerk in and for Gregg County, Texas, to which reference is here made, and, “Whereas, under and by virtue of the aforesaid oil and gas lease and the contracts of April 17, 1931, and April 18, 1931, the said J. E. Stack has drilled a well on said 15 acre tract down to the producing sand, and is in need of funds for the final completion and equipping of said well, and in order to raise additional funds has by an instrument in writing of even date herewith transferred, assigned and conveyed unto the Producers Investment Corporation of Dallas, Texas, one-fourth (¼) of seven-eighths (⅞) of the first oil produced, saved and marketed from said 15 acre tract until the said Producers Investment Corporation or its assigns has received therefrom the sum of Forty Thousand Dollars ($40,000.00) and the said Producers Investment Corporation and J. E. Stack have entered into another agreement, of even date herewith providing that the consideration to be paid by the Producers Investment Corporation shall be paid direct to the laborers and material men furnishing labor and supplies for the completion and equipping of said well as is herein provided said assignment to and contract with the Producers Investment Corporation being made a part hereof; and the undersigned the owners of interest in said lease under the contracts of April 17, 1931 and April 18, 1931, and July 7, 1931, desire to ratify and confirm said sale and conveyance and contract of even date herewith, between the said J. E. Stack, and the Producers Investment Corporation. “Now, therefore, in consideration of the premises and of the consideration paid and to be paid by the said Producers Investment Corporation to the said J. E. Stack, which runs to the mutual benefit of the undersigned, the undersigned and each of them do hereby approve said sale and assignment of even date herewith, by the said J. E. Stack to the Producers Investment Corporation and said contract herewith between the parties relative to the payment of bills incurred in the completion and equipping of said well, it is expressly understood that the said Virginia Sanders and husband, J. A. Sanders, assume no responsibility or liability for the drilling or completion or operations of said well or other wells on said 15 acres nor for the performance by any of the other undersigned parties of any of their obligations under said contract, and with the express understanding and in consideration of the agreement by the said J. E. Stack to finally complete and equip said well in accordance with the original contracts of April 17, 1931, and April 18, 1931, hereabove referred to, as the said J. E. Stack heretofore agreed to do in a similar instrument heretofore executed by said parties on July 17, 1931, to all of which instrument reference is here made (failure to do which shall restore to Virginia Sanders and husband, J. A. Sanders, all rights existing under their said contract of April 17, 1931), it 'being the intent and purpose of all parties hereto notwithstanding anything herein to the contrary to fully ratify the aforesaid sale and contract of even date herewith by the said J. E. Stack to the Producers Investment Corporation so that when the said J. E. Stack shall bring in said well and equip the same and connect the same to flow tanks in such manner as the oil may be produced and sold from said tract the Producers Investment Corporation shall have clear and absolute title to one-fourth (⅛) of seven-eighths (⅞) of the first oil produced and saved from said land, until it receives said Forty Thousand Dollars ($40,000.00) herein conveyed. “Witness our hands this the 20th day of August, A. D., 1931. Mrs. Virginia Sanders J. A. Sanders Buda Mauldin H. C. Mauldin F. A. Perrenot J. E. Stack.” All of the above instruments were duly acknowledged by the parties executing same. On June 1, 1931, Mesdames J. M. Stinnette, and George E. Light instituted suit in the 101st District Court of Dallas County, Texas, against Mrs. Virginia Sanders and her husband, J. A. Sanders, and by amended petition, later joined J. E. Stack as a party defendant in such suit and sought to recover an undivided ⅔rds trust interest in the IS acre leasehold here involved. Virginia Sanders and husband J. A. Sanders, in their answer expressly alleged that any and all contracts mentioned in the plaintiffs’ petition for the development of said lease (referring to the Sanders, Per-renot, Mauldin agreement of April 17, 1931, and the Perrenot, Mauldin, Sta'ck agreement of April 18, 1931, and the working interests and liens created against the oil runs in favor of Pettit and Producers Investment Corporation) were wise and prudent and had been obtained at the minimum expense possible; and in any event, were for the benefit of the true owners of said lease; that it would be inequitable to permit the plaintiffs in such cause to recover any interest in said lease, except subject to outstanding contracts for the development thereof. On the trial of such cause, on October 8, 1932, after transfer to the 14th District Court of Dallas County, Stack abandoned his rights to the lease and set-tied all issues involved against him and judgment was entered for the plaintiffs, Stinnette and Light, against the Sanders and Stack for a ⅔rds undivided interest in the leasehold. On an appeal the judgment of the trial court was affirmed. See Sanders v. Stinnette, Tex.Civ.App., 73 S.W.2d 637 (W. R.) for more detailed history of cause. None of the appellees in the present suit or their predecessors in title, were parties defendant in that suit. On September 26, 1931, after the “first well” had been brought in as a producer, Mrs. Virginia Sanders and husband, J. A. Sanders, filed cause No. 9571S-E in the 101st District Court of Dallas County against J. E. Stack, the Mauldins and Perrenot and other defendants. Stinnette and Light were not made parties to the suit. From the pleadings of the parties to such suit and the preliminary show cause order of the court, it appears that the only issues involved were the rights of plaintiffs therein to "a temporary and permanent injunction restraining Stack and Perrenot from drilling an oil well on a two and one-half acre lease lying immediately South and adjacent to the 15 acre lease here involved, for the appointment of a receiver to take charge of such 15 acre lease under proper orders of the court, and for an accounting for oil produced and sold from said lease in accordance with the contracts between the parties. On December 12, 1931, the time set for the hearing, an agreed judgment was entered by which the Producers Investment Corporation was made receiver and authorized to take charge of and operate the lease including the oil well situated thereon, in accordance with the terms and provisions of the contracts and agreements theretofore entered into by and between the Sanders, Perrenot, the Mauldins, Stack and the Producers Investment Corporation, but it was therein agreed and provided that such agreement and appointment should not effect or prejudice any of the rights of the parties thereto, whether then asserted or thereafter to be asserted by any of such parties, or asserted in the Stinnette-Sanders case, and that all rights of all parties thereto were agreed to be specifically preserved and not affected thereby, and that all parties thereto might litigate their rights, titles, interests and claims in and to the lease or any other matters in dispute, as they then existed or might be shown to exist, without being prejudiced by anything therein contained. On October 3, 1933, the Sanders filed a motion in the cause to continue the temporary injunction theretofore made, enjoining further operation of the wells on the two and one-half acre tract by Stack, Perrenot, the Mauldins and one Blanche Blewett. In said motion, the Sanders also sought to remove the Producers Investment Corporation as receiver and to appoint another receiver instead. On October 26, 1933, such motion was heard and sustained. The injunction as to operation of the wells on the two and one-half acre tract was continued in effect, the Producers Investment Corporation was removed as receiver and one J. M. Weaver was appointed to operate and manage such IS acre lease under orders of the court for the mutual benefit of all parties having an interest therein. On May 15, 1936, Mrs. Stinnette, Mrs. Light and husband, George Light, and George Light, Jr., Leonard M. Levy and William M. Evans, after first obtaining leave of the court, filed in the aforesaid receivership suit a plea of intervention and cross-action asserting title and right to possession of the IS acre leasehold for which they asked judgment as against plaintiffs therein, Mrs. Virginia Sanders and husband, J. A. Sanders, and defendants therein, J. E. Stack, H. C. Mauldin and wife, Buda Mauldin, F. A. Perrenot, Charles Pettit, Blanche Blewett, a feme sole, and Producers Investment Corporation. Of all parties named, defendants in such cross action, the Producers Investment Corporation alone, was served with citation, and alone made answer thereto. On September 10, 1936, Producers Investment Corporation filed its answer to such cross-action alleging that in addition to its right to the two oil payments it had “acquired the interest of the plaintiffs, Mrs. Virginia Sanders and husband, J. A. Sanders”, and that it owned ⅛ of the entire leasehold estate and prayed judgment of the court therefor. The intervenors and plaintiffs in such cross-action filed further pleadings which were joined in by pleadings of the Producers Investment Corporation to close the receivership, alleging that all matters in controversy between parties had been settled by an agreement between the parties. Hearing on the receivership motion was set for September 19, 1936, but no notice was then given to appellees and judgment was entered on that date, reciting that all parties to the cause came in person and by attorneys and announced ready for trial, waived a jury and submitted all matters of law and fact to the court; that after hearing the pleadings, the evidence and argument of counsel, the court entered judgment decreeing that all interest in the leasehold and profits derived therefrom and the title thereto was vested in appellants herein in the various proportions as claimed 'by them. Appellees were not mentioned in the judgment except by inference as “other parties” thereto. Appellees herein, Mrs. Buda Mauldin and those claiming under Perrenot, as plaintiffs in the trial court directly attacked in the 101st District Court of Dallas County the above mentioned judgment entered by said court in said cause No. 95715, Sanders v. Stack, et al., on the grounds that it was not in truth and fact a judgment but was only a contract between appellants, the participating parties thereto, and further sought to set it aside because of lack of citation or notice, jurisdictional grounds and fraudulent concealment and practices in its procurement. Upon the trial of the cause, the following fact issues were submitted to the jury and the answers indicated were made thereto : “No. 1. Do you find * * * that within 29 days from April 18, 1931, J. E. Stack had a derrick on the 15 acre Doby lease in the Castleberry Survey? Answer: No. “No. 3. Do you find * * * that J. E. Stack commenced drilling operations on the 15 acre Doby lease within 59 days from April 18, 1931? Answer: No. “No. 5. Do you find * * * that before the first oil well on the 15 acre Doby lease was completed and brought in as a producer, J. E. Stack abandoned the job of drilling the said well? Answer: Yes. “No. 6. Do you find * * * that the Mauldins and Perrenot completed the drilling of the first oil well on the 15 acre Doby lease and brought it in as a producer? Answer: Yes. “No. 6-A: Do you find * * * that such completion of the first oil well by the Mauldins and Perrenot * * * was accomplished without cost or expense to Mr. and Mrs. J. A. Sanders? Answer: Yes. “No. 7: Do you find * * * that after the bringing in of well No. 1 as a producer of oil Mrs. J. M. Stinnette and Mrs. George Light accepted 'benefits resulting from the drilling of said well? Answer: Yes. “No. 7 — A: Do you find * * * that at and after the time when Mrs. J. M. Stinnette and Mrs. George Light accepted benefits from the drilling of the first well * * * the Mauldins and Perrenot were claiming an interest in the 15 acre Doby lease? Answer: Yes. “No. 7-B: Do you find * * * that on and after the time when Mrs. J. M. Stinnette and Mrs. George Light accepted benefits from the drilling of the first well, they or their attorneys had full knowledge of the claim of the Mauldins and Perrenot to an interest in the 15 acre Doby lease? Answer: Yes. “No. 7-C: Do you find * * * that on and after the time when Mrs. J. M. Stinnette and Mrs. George Light accepted benefits from the drilling of the first oil well they, or their attorneys, had full knowledge of the work and acts done by the Mauldins and Per-renot in drilling said oil well * * * ? Answer: Yes. “No. 9: Do you find * * * that it was a practice in the District Courts of Dallas County, Texas, on or about September 19, 1936, for litigants, or their attorneys, who obtained a setting for the trial of a jury case to give notice of opposing litigants, or their attorneys, of the date set for the trial? Answer: Yes. “No. 10: Do you find * * * that prior to September 19, 1936, Producers Investment Corporation, Virginia Sanders, Mrs. J. M. Stinnette, Mrs. George Light, George Light, George Light, Jr., Leonard Levy, and William Evans, or their attorneys, failed to give notice to the Mauldins and Perrenot that Cause No. 95715-E pending in the 101st District Court was set for hearing on September 19, 1936? Answer: Yes. “No. 11: Do you find * * * that Producers Investment Corporation, Mrs. Virginia Sanders, Mrs. J. M. Stinnette, Mrs. George Light, George Light, George Light, Jr., Leonard Levy, and William Evans, or their attorneys, by failing to give such notice * * * intended to conceal from the Mauldins and Perrenot the fact that Cause No. 95715-E was set for September 19, 1936? Answer: Yes. “No. 12: Do you find * * * that such failure to give notice * * * did actually conceal from the Mauldins and Perrenot the fact that Cause No. 95715-E was set for trial September 19, 1936? Answer: Yes. “No. 13: Do you find * * * that such concealment * * * resulted in the failure of the Mauldins and Perre-not to be present in the 101st District Court and to assert their claim, if any, to an interest in the Doby 15 acre lease in question at the trial of Cause No. 95715-E on September 19, 1936? Answer: Yes. “No. 14: Do you find * * * that the judgment of September 19, 1936, in Cause No. 95715-E, was a judgment which was the result of an agreement between Mrs. J. M. Stinnette, Mrs. George Light, the Producers Investment 'Corporation and Levy and Evans, or their attorneys, acting for such parties? Answer: Yes. “No. 15: Do you find * * * that the Mauldins used diligence in looking after their interest, if any, in Cause No. 95715-E in the 101st District Court, Dallas County, Texas? Answer: Yes. “No. 16: Do you find * * * that Fred A. Perrenot used diligence in looking after his interest, if any, in said Cause No. 95715-E in the 101st District Court, Dallas County, Texas? Answer: Yes. “No. 21: Do you find * * * that after September 19, 1936, H. C. Maul-din and his wife, Mrs. Buda Mauldin, used diligence to discover whether or not a judgment had been entered in Cause No. 95715-E? Answer: Yes. “No. 22: Do you find * * * that after September 19, 1936, Fred A. Per-renot used diligence to discover whether or not a judgment had been entered in Cause No. 95715-E? Answer: Yes. “No. 23: Do you find * * * .that Mr. H. C. Mauldin and Mrs. Buda Mauldin used diligence in the filing of this suit after discovering or knowing about the judgment of September 19, 1936, in Cause No.. 95715-E in the 101st District Court? Answer: Yes. “No. 24: Do you find * * * that Fred A. Perrenot used diligence in filing this suit after first discovering or knowing about the judgment of September 19, 1936, in Cause No. 95715-E in the 101st District Court? Answer: Yes. “No. 25 : Do you find * * * that on or about the 22nd day of August, 1931, J. E. Stack acquiesced in the restoration to Virginia Sanders and husband, J. A. Sanders, all rights existing under the contract of April 17, 1931 ? Answer: No. “No. 27: Do you find * * * that after August 20, 1931, J. E. Stack failed to finally complete and equip the No. 1 well on the J. B. Doby 15 acre lease? Answer: Yes. “No. 28: Do you find * * * that on or about the 22nd day of August, 1931, the Mauldins and Perrenot, on the one hand, and J. E. Stack, on the other, agreed on the terms for an adjustment and settlement of their accounts under their contract of April 18, 1931? Answer: Yes. “No. 29: Do you find * * * that at the time of the first purchase by Mrs. Wood of an interest in said 15 acre lease from Mrs. Stinnette, she had knowledge of such facts as would have put an ordinarily prudent person on inquiry as to the title of said lease ? Answer: Yes. “No. 30: Do you find * * * that if Mrs. Wood had pursued with reasonable diligence an inquiry as to such facts, she would have discovered the claims of the Mauldins and Perrenot as to such 15 acre lease? Answer: Yes. “No. 30-A: Do you find * * * that at thé time the said first oil well was brought in as a producing oil well on said 15 acre Doby lease, J. E. Stack, Fred A. Perrenot, and B. M. Dorrity were acting as partners, as that term is herein defined, in +he operations on the Doby 15 acre lease? Answer: No. “No. 31 : Do you find * * * that J. E. Stack by his own efforts drilled the first oil well on the 15 acre Doby lease and brought it in as a producing well? Answer: No. “No. 33: Do you find * * * that prior to September 19, 1936, H. C. Mauldin and Buda Mauldin abandoned any claim they may have had to ownership of an interest in the 15 acre Doby lease? Answer: No. “No. 36: Do you find * * * that prior to September 19, 1936, Fred A. Perrenot abandoned any claim he may have had to ownership of an interest in the 15 acre Doby lease? Answer: No. “No. 37: Do you find * * * that the Mauldins and Perrenot had notice before the signing and delivery of the agreement dated April 17, 1931, of the claims of Mrs. J. M. Stinnette and Mrs. George Light to a one-third interest each in the 15 acre Doby lease? Answer : No. “No. 38: Do you find * * * that H. C. Mauldin and Buda Mauldin failed to present any claim to the Doby lease in Cause No. 95715-E prior to September 19, 1936? Answer: Yes. “No. 39: Do you find * * * that the failure of H. C. Mauldin and Buda Mauldin to present any claim to the Doby 15 acre lease in Cause No. 95715-E prior to September 19, 1936, if there was such a failure, constituted negligence on the part of H. C. Mauldin and Buda Mauldin? Answer: No. “No. 40: Do you find * * * that Fred A. Perrenot failed to present any claim to the Doby lease in Cause No. 95715-E prior to September 19, 1936? Answer: Yes. “No. 41: Do you find * * * that the failure of Fred A. Perrenot to present any claim to the Doby 15 acre lease in Cause No. 95715-E prior to September 19, 1936, if there was such a failure, constituted negligence on the part of Fred A. Perrenot? Answer: No. “No. 42: Do you find * * * that Lester Whipple failed to present any claim to the Doby lease in Cause No. 95715-E prior to September 19, 1936? Answer: Yes. “No. 43: Do you find * * * that the failure of Lester Whipple to present any claim to the Doby 15 acre lease in Cause No. 95715-E prior to September 19, 1936, if there was such a failure, constituted negligence on the part of Lester Whipple? Answer: No. “No. 44: Do you find * * * that Nancy Fritz Moon failed to present any claim to the Doby lease in Cause No. 95715-E prior to September 19, 1936? Answer: Yes. “No. 45: Do you find * * * that the failure of Nancy Fritz Moon to present any claim to the Doby 15 acre lease in Cause No. 95715-E prior to September 19, 1936 if there was such a failure, constituted negligence on the part of Nancy Fritz Moon? Answer: No. “No. 46: Do you find * * * that Mrs. Fannie G. Morgan failed to present any claim to the Doby lease in cause No. 95715-E prior to September 19, 1936? Answer: Yes. “No. 47: Do you find * * * that the failure of Mrs. Fannie G. Morgan to present any claim to the Doby 15 acre lease in Cause No. 95715-E prior to September 19, 1936, if there was such a failure, constituted negligence on the part of Mrs. Fannie G. Morgan? Answer: No. “No. 48: Do you find * * * that H. C. Mauldin and Buda Mauldin by the use of ordinary diligence could have known prior to September 19, 1936, of the setting made by Judge Claude Mc-Callum in Cause No. 95715-E in the 101st District Court for the hearing on September 19, 1936? Answer: No. “No. 49: Do you find * * * that Fred A. Perrenot by the use of ordinary diligence could have known prior to September 19, 1936 of the setting made by Judge Claude McCallum in Cause No. 95715-E in the 101st District Court for the hearing on September 19, 1936? Answer: No. “No. 50: Do you find * * * that prior to September 19, 1936, the Maul-dins, by their acts and conduct, represented to Mrs. J. M. Stinnette, Mr. and Mrs. George E. Light, Mr. and Mrs. J. A. Sanders, Producers Investment Corporation, Leonard M. Levy, and William L. Evans that J. E. Stack had completed the drilling of the first well in the 15 acre lease involved in this suit? Answer: No. “No. 53: Do you find * * * that prior to September 19, 1936, Fred A. Perrenot, by his acts and conduct, represented to Mrs. J. M. Stinnette, Mr. and Mrs. George E. Light, Mr. and Mrs. J. A. Sanders, Producers Investment Corporation, Leonard M. Levy, and William L. Evans that J. E. Stack had completed the drilling of the first well on the 15 acre .lease involved in this suit? Answer: No. “No. 56: Do you find * * .* that at the time of its purchase from Mrt. Virginia Sanders of her interest in the 15 acre Doby lease by the Producers Investment Corporation, H. C. Maul-din and Buda Mauldin, by their acts, conduct, and omissions, if any, and failure to act, if any, represented to Producers Investment Corporation that they were making no claim to the Sanders’ interest in the Doby 15 acre lease? Answer: No. “No. 59: Do you find * * * that at the time of its purchase from Mrs. Virginia Sanders of her interest in the 15 acre Doby lease by the Producers Investment Corporation, Fred A. Per-renot, by his acts, conduct and omissions, if any, and failure to act, if any, represented to Producers Investment Corporation that he was making no-claim to the Sanders’ interest in the Doby 15 acre lease? Answer: No.” Judgment was entered in this cause on March 4, 1950, making final an interlocutory judgment from a previous trial against J. E. Stack and B. M. Dorrity clearing title to the leasehold in question as to each of said parties. It was further decreed that Mrs. Buda Mauldin as to a one-half undivided interest and the Perrenot parties as to a one-half undivided interest were the owners and entitled to possession of the 15 acre lease and all production and proceeds therefrom in accordance with the contract of April 17, 1931. H. C. Mauldin had previously assigned his interest to Mrs. Mauldin. It was decreed that the Producers Investment Corporation, who had purchased the Sanders interest, was entitled to one-third of one-half of the net proceeds from the lease; that Mrs. J. M. Stinnette and under her, Mrs. Annabelle Stinnette Wood, and certain other claimants were entitled to one-third of one-half of the net proceeds from the lease; that Mrs. Light and under her, George Light, Jr., those claiming under Levy, who was deceased, and Evans, and certain other claimants, were entitled to one-third of one-half of the net proceeds from the lease, all in accordance with the contract of April 17, 1931. It was decreed that Producers Investment Corporation, the holder of the Sanders interest, Mrs. -Stin-nette, the Lights and those claiming under them, were entitled to the sum of $15,000 in accordance with the contract of April 17, 1931. It was decreed that Producers Investment Corporation was entitled to the sum of $40,000 and then an additional $40,-000 out of %2nds of the oil produced, saved and marketed from said 15 acre lease. It was further decreed in substance that the cost and expense of drilling and equipping the second, third and fourth wells on the 15 acre lease was chargeable against production ahead of net proceeds in accordance with the contract of April 17, 1931, the second and third wells having been drilled and equipped during the receivership of Joseph Weaver and a fourth having been drilled and equipped after September 19, 1936, when Mr. Weaver was discharged as receiver. Title was quieted in Mrs. Buda Mauldin as to her one-half undivided interest and quieted in the Perrenot parties as to their one-half undivided interest in the 15 acre lease, as to the judgments in Cause No. 95715-E, the receivership case, and Cause No. 93579, the Stinnette, Light, Sanders case, and to all other parties to this cause. Producers Investment Corporation, the Lights, Stinnettes and those claiming under them have appealed from such judgment. In appellants’ first four points it is either urged or assumed that the agreement of April 17, 1931 upon which appellees (Mauldin and Perrenot parties) base their whole claim of title to the lease in question was by mutual consent of the parties superseded and replaced by a new and different agreement. Such claimed new and different agreement was the ratification agreement executed and delivered to Stack by Mr. and Mrs. Sanders dated July 27, 1931 and joined in by H. C. Mauldin, Buda Mauldin and F. A. Perrenot. Appellants contend that the ratification agreement conveyed legal title to all of the lease involved in this suit unconditionally to J. E. Stack; that such title remained in Stack until October 8, 1932 when the judgment of the 14th Judicial District Court in Cause No. 93597 styled Mrs. J. M. Stinnette, et al. v. Virginia Sanders, et al., divested legal title to the lease involved out of J. E. .Stack and vested it in Mrs. Stinnette, Mrs. Light and Mrs. Sanders. We Caiinot agree that the contract of April 17, 1931, was so replaced and superseded. Stack had by his -contract with Perrenot, and the Mauldins, on April 18, 1931, agreed to drill to completion the first oil well on the 15 acre lease and the vesting of any title in Stack was conditional upon his performance of such agreement. When it became necessary to secure money from Pettit to continue the drilling of the well, an oil payment of $40,000 to be paid out of 7/32nds of the first oil as if and when produced and marketed therefrom, was sold to Pettit by instrument executed by Stack on July 25, 1931. The ratification agreement of July 27th executed by Mr. and Mrs. Sanders, the Mauldins and Perrenot, referred to the contracts of April 17th and April 18th, 1931 and provided that the obligations of the parties thereto remained unchanged. Mr. and Mrs. Sanders particularly ratified their agreement of April 17th with Perrenot and the Mauldins. The stated purpose of the ratification instrument was to protect Pettit, his heirs and assigns in the $40,000 oil payment conveyed to him by Stack. The assignment therein of the 15 .acre lease to Stack was by the terms thereof “subject only to the rights of the parties hereto and of Charles Pettit, his heirs, and assigns under and by virtue of the said contracts of April 17, 1931, April 18, 1931 and July 25, 1931 respectively.” We are of the opinion that the agreement of April 17, 1931, upon which appellees base their claim, was not replaced and superseded by the ratification agreement, insofar as title to the lease was involved, but that by the terms of such ratification, Perrenot and the Mauldins retained all rights thereunder subject only to the $40,000 oil payment to Pettit. They were not parties to the Stack-Sanders suit, No. 93597 in the 14th District Court and were not affected by the judgment entered therein on October 8, 1932, against Stack. Such judgment did not divest title to the lease or any part thereof out of Stack because such title had never become vested in him. The contracts of both April 17 and 18, 1931, were executory and the vesting of legal title in the Mauldins and Perrenots under contract of April 17th and in Stack under contract of April 18th was contingent upon the performance of the contracts by such parties. It was found by the jury upon sufficient evidence that Stack did not perform his contract but abandoned same. It, therefore, appears that Stack not only acquired no absolute title under the ratification agreement, as claimed by appellants, but by reason of his abandonment of the well and his failure to comply with the terms of the contract of April 18, 1931, he also lost the right therein granted to acquire title to the lease. It is urged by the Stinnettes and Lights and those claiming under them, that they never recognized any of the Sanders, Mauldins, Perrenots, Stack contracts as binding, nor accepted any benefits thereunder and that before Mauldin and Perrenot acquired title to the lease, both had actual and constructive notice of the rights of Mrs. Stinnette and Mrs. Light because an affidavit setting up their claim against Mrs. Sanders was filed for record in Gregg County where the 15 acre lease is located on May 28, 1931, and that a lis pendens notice of the filing of Cause No. 93957 by Stinnette and Light against the Sanders and Stack was filed in Gregg County on August 4, 1931. In our opinion, this contention is untenable. When Mauldin and Perrenot entered into possession of the 15 acre lease under the contract of April 17, 1931, they acquired an equitable interest in the property with the right to proceed with the performance of the terms thereof which when fully performed, would vest in them full legal title. 43 Tex.Jur., page 241; Alworth v. Ellison, Tex.Civ.App., 27 S.W.2d 639; American Nat. Ins. Co. v. Bass, Tex.Civ.App., 111 S.W.2d 769; Pevehouse v. Oliver Farm Equipment Sales Co., Tex.Civ.App., 114 S.W.2d 658. Perrenot and Mauldin were required to look only for conveyances made prior to their contract of April 17, 1931 or of their entry into possession of the lease. 43 Tex.Jur., page 61. It is also to be noted that one of the contentions upon which this point is based is that the Stin-nettes and Lights never recognized the contract of April 17, 1931 as binding nor accepted any benefits thereunder. This contention is contrary to the jury finding that Mrs. Stinnette and Mrs. Light did accept benefits resulting from the drilling of the well with full knowledge of work and acts done by Perrenot and the Maul-dins in drilling the well and of their claims in the lease. These findings had support in the evidence. It is shown that Mrs. Annabelle Stinnette Wood purchased from her mother, Mrs. Stinnette, a ⅛ interest in the lease in question. The contention is made that she was a bona fide purchaser of such interest and is entitled to have same awarded to her free of all claims by appellees. The findings of the jury in answer to special issues Nos. 29 and 30 are contrary to this contention and are supported by the evidence. In addition, the contract of April 17, 1931 was of re