Lazy M Ranch, Ltd. v. Txi Operations, Lp
978 S.W.2d 678 (1998)
Legal Analysis
Legal analysis from Dean's Law Dictionary will be displayed here.
Nature Of The Case
This section contains the nature of the case and procedural background.
Facts
P and D executed a written contract that required P to pay D $2,000 for the right by conducting subsurface tests on a part of D's land--1,669 acres specifically described in the contract by metes and bounds. P also got an exclusive and irrevocable option to lease 300 of the 1,669 acres to mine subsurface materials. To exercise the option right, the contract required P to give D written notice of its election within six months of the April 1 contract and (2) tender $98,000 to D. P paid the required $2,000 and began exploration under the contract. Morris, who negotiated the contract on D's part died in August 1996. On September 27, 1996, P attempted to exercise its option by delivering the required written notice accompanied by a $98,000 bank check. George Morris, III, who had succeeded his father as president of D, refused to lease any of the land to P. He returned P's check with a letter explaining that D would not lease the land as promised because P had breached the contract by entering upon and testing D's land outside the 1,669 acres specified in the contract. Morris stated that P had taken advantage of his ailing father. P sued for specific performance. The trial court granted summary judgment. D appealed: P materially breached the contract before attempting to exercise the option, thereby excusing D from performance; P was not entitled in equity to specific performance because P had 'unclean hands' in the transaction.
Issues
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Holding & Decision
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