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Contracts Keyed to Ayres
Theodore Russell v. Texas Co.
Citation:
238 F.2d 636.Facts
The Plaintiff (Russell) owned a plot of land (Section 23), but the deed contained a reservation for mineral rights held by the grantor, another defendant in the action. The grantor later gave the Defendant (Texas Co.) an oil and gas lease, allowed under the mineral reservation. The Defendant then used the surface of the land to exploit the mineral rights under Section 23. However, the Defendant, without the proper rights to do so, used the surface of Section 23 to support its mining operations in adjacent lands. The Plaintiff made an offer to the Defendant to continue using the surface lands for adjacent operations under a revocable license, at the cost of $150.00 per day. The offer expressly contained a proviso stating that continued use of the surface would constitute acceptance. The Defendant did not reply to the offer, continuing to use section 23 for several weeks. Weeks after stopping use, the Defendant then sent an official rejection of the offer. The Plaintiff sued, arguing that the contract had already been accepted.
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