Appeal from the Circuit Court of Wabash County; the Hon. ROY
O. GULLEY, Judge, presiding. Judgment reversed and cause remanded
Rehearing denied November 23, 1964.
Calvin Oil Company, an Express Trust operating through P.E. Tipton, Trustee, was the owner of an undivided three-fourth interest in a group of producing oil and gas leases covering various tracts of land in Hamilton County, Illinois. T.M. Bane was the owner of the remaining one-fourth interest in these leases.
W.C. McBride, Inc. is a Delaware Corporation, licensed to transact business in Illinois, with offices in St. Louis, Missouri. As a result of previous negotiations, the McBride Company, under date of December 16, 1960, caused to be prepared and delivered to said Calvin Oil Company and said T.M. Bane, the following instrument:
"Calvin Oil Company Mr. T.M. Baines Carmi, Illinois
Re: Memorandum of Agreement
According to our understanding you represent as follows:
1. That you operate and own all of the 7/8 working interest subject to overrides not in excess of 1/16 of 7/8 per lease in and to the following described oil and gas leases covering lands situated in Hamilton County, State of Illinois, to-wit:
2. That you own all of the equipment now in use on said properties or purchased in connection herewith.
3. That your interest in said lease or leases is subject to mortgages and or liens in the aggregate amount of $284,000.00.
4. That you are willing to sell and assign with warranty of title all of your interests in said leasehold estates for the sum of $320,000.00.
Now therefore in consideration of the sum of $320,000.00 to be paid as hereinafter provided you and McBride agree as follows:
1. For each leasehold estate, you are to furnish McBride or its attorneys with complete abstracts supplemented to the date of approval by the pipeline company.
2. You are to furnish McBride, with copies of all pipeline opinions showing title as being well vested in you.
3. Within ____ days from the date hereof, you are to deliver assignments of the leasehold estates effective as of 7:00 A.M., January 1, 1961, as ...