Brannon v. Gulf States Energy Corp.
Supreme Court of Texas
562 S.W.2d 219 (1977)
Gulf States Energy (defendant) held an oil and gas lease from Martin that was set to lapse for nonpayment of a delay rental, but sent a letter titled "Lease Rental" with a check labeled the same way, which Martin cashed, effectively reviving the lapsed lease. The IRS later seized related drilling-company assets, and Brannon and another buyer (plaintiffs) purchased those rights at auction; Gulf then had Martin sign a brand-new 1975 lease on the same land, and at trial, Gulf and Martin both testified that the earlier January 1975 check was actually an advance bonus for the new lease, not a rental payment reviving the old one, under a claimed subsequent oral agreement. The trial court admitted this testimony over objection and ruled for Gulf; the plaintiffs appealed.
Whether the acceptance of an unambiguous written lease-rental letter and payment is contractual in nature, such that its terms cannot be varied by parol evidence of a subsequent oral agreement characterizing the payment differently.