Kincaid v. Gulf Oil Corp.
Court of Appeals of Texas
675 S.W.2d 250 (1984)
Kincaid's (plaintiff) lease with Gulf (defendant) provided for termination absent a well or an annual delay-rental payment, unless Gulf made "a bona fide attempt to pay"; Gulf directed its agent Omega to deliver the payment, confirmed the arrangement with the bank multiple times, and an Omega employee delivered a timely check that was mistakenly labeled for the wrong tract, an error Omega corrected within two days once discovered. Kincaid sued for a declaratory judgment that the lease had terminated for nonpayment, and the trial court ruled for Gulf.
Whether an unless lease automatically terminates upon the nonpayment of a delay rental if the lease provides the lessee protection from the payment provision upon a bona fide attempt to make the payment, and the lessee makes a bona fide attempt.