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Cannon v. Cassidy

Supreme Court of Oklahoma
542 P.2d 514 (Okla. 1975)


Facts

The lessees signed an oil and gas lease requiring them to pay royalties to the lessors. The lease did not expressly provide for a remedy when such payments were not made. The lessees did not pay royalties to the lessors for a period of 11 months, resulting in a total underpayment of $1,693.62. The lessors brought suit, seeking cancellation of the lease. The lessors argued that the lessees’ failure to pay royalties was not only a breach of the express terms of the lease, but also of the implied covenant to market. The trial court held that cancellation was not the appropriate remedy. The court of appeals reversed, and cancelled the lease. The lessees appealed.

Rule of Law

Issue

Holding and Reasoning (Simms, J.)

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