Chief backs out of lease!!

I signed a lease with chief end of may, I called to check the status of the bonus check yesterday and they said they decided not to accept it. I can't believe it's ok to keep someone tied up all of this time and then back out of a lease. Is this legal??


Any advice would be appreciated

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Permalink Reply by Kathleen on August 28, 2013 at 1:26pm
Sorry to say, Yes it is. If you carefully read your lease it will say they do not have to except it for a number of reasons and at their discretion. They word it in a way they can back out just because they changed their mind.
This happens in large groups and to single signers. Large groups can have more pull if they want to, but from what I've read here over time, they also have let this happen over and over again.
Permalink Reply by ZJ on August 28, 2013 at 4:10pm

RRJ I am new here. But I am learning. See my thread A Model Lease. It sounds like you were badly deceived and taken advantage of. What this means to me is that leases need to have a clause saying that if Lessee backs out after signing or fails to pay the bonus by a specific date then of course the lease is null and void AND the party having signed the lease must pay a penalty of I don't know say $500/acre. But I am not an attorney and will be interested in other replies. I would like to see right here specific language from an attorney about handling this. 

Permalink Reply by Ed on August 28, 2013 at 9:01pm

It sounds ass backwards to sign leases in this manner but it is done routinely.  What I mean is that with any "normal" real estate deal the usual progression is that the buyer (leasee) presents the seller (lessor) with a signed agreement.  If the seller signs the agreement then they have a bonafide binding deal (contract). 

 

However, with these gas leases it seems that the lessor always hands over a signed "lease agreement" first.  And without some kind of "time is of the essence" clause then the leasee can virtually sit on the lease forever and a day.  And if the lessor doesn't inform the leasee in writing via registered mail that he is declaring the proposal null & void then the leasee could sign the lease at any time in the future without jeprody and have a binding contract.  Then if the lessor signs with someone else before dclaring the first one null & void there could be legal trouble.

 

You should inform the leasee in writing that you are declaring that contract null & void.

0i7okn54zwbdoPermalink Reply by 0i7okn54zwbdo on August 29, 2013 at 2:58am

It's an "unless" lease, which means it's void unless the company makes payment as delineated within the contract.

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