Beware of Implied Verbal contracts

A landman is insisting we sign an oil, gas, and mineral lease he overnighted to us because he states that we had a "verbal agreement." After reviewing the written lease, we do not want to sign it; he says since we originally said we would sign it and "get it in the mail" that it is a done deal. Any help?

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Permalink Reply by Count of Monte Cristo on August 9, 2008 at 2:33
Under Louisiana law, verbal contracts are supposed to be just as binding as written ones, provided that certain requirements are met (mutual consideration, etc.). However, verbal contracts are a lot less enforceable than written ones due to the "he said she said" nature of the evidence.
Permalink Reply by Father of the Year on August 9, 2008 at 2:43
Is this true? Under Louisiana law a verbal contract respecting a lease of mineral interest is binding?
Permalink Reply by RL on August 11, 2008 at 8:58
The Count is correct. Verbal contracts are binding. However, as the Count states, the "he said, she said" makes enforcement more difficult. In your case, sounds like the written contract was not what you agreed on. So I would say "take me to court!"
Permalink Reply by noaah on August 9, 2008 at 2:53
Yes, we had over the phone agreed to a bonus amount and royalty; then he sent the written lease. All landowners need to be aware of this verbal contractual loophole if it is indeed binding. You may get a written lease from a high pressuring landman that you don't want to live with!
Permalink Reply by DYST_JP on August 9, 2008 at 3:11
It sounds to me like some more of the bullying tactics by unprofessional landmen. I agree with Jim, with my limited knowledge of contract law they could possible hold you to the agreed upon bonus payment and % royality but the fine print that was not discussed over the phone, they can not hold you to that. There was never a "meeting of the minds" concerning those aspects of the lease. This is what a judge would use to rule if it was in a court of law. Stick to your guns about what is important to you and what you need to protect your property.
Permalink Reply by insomniacnla on August 9, 2008 at 3:21
Noaah,

Ask an attorney, but any binding real estate contract must be IN WRITING. Verbal real estate contracts are non-binding. Just make sure that you have not signed anything. Don't let the landman lie to you.
Permalink Reply by Randy on August 9, 2008 at 3:50
Dont think of it like Real Estate, because there are threads that explain why you can't and shouldn't apply real estate law.

You verbally agreed on the royalty and bonus, in reality he can't hold you to that unless you signed a Letter of Intent(and that isn't really binding). You did not agree on any terms or conditions. Tell the man that you will agree to sign his contract with the following changes. etc etc.

If he continues to pressure you and be un-professional, then (if it was me), I would talk to his boss, some way, some how. Then I would call the operator he was working for (i.e. Chesapeake) and tell them what had been transpiring, which would get the broker & landman in hot water. THEN, I would follow that up with a call to the BBB and local newspaper.

That's just my opinion, of course.


Randy
Permalink Reply by P.G. on August 9, 2008 at 4:19
Hmmm?
If there's an agreement with the bonus and royalty, then just change the terms to your liking! Heck, change the bonus and royalty too, if you like! Tell the landman that this is the agreement and to accept it! Tell him, it's binding and see what he says!
Geesh! Tell him to take a hike!
Perhaps too before this goes on any longer, get you a mini voice tape recorder so you'll have some proof of how that clown is bullying you!
Permalink Reply by Snake Stewart on August 9, 2008 at 4:31
I have a Big Boombox type recorder sitting on my table just waiting for my big encounter. Actually I will have a whole group of people with me and they may all have boom boxes on their shoulders.
Permalink Reply by P.G. on August 9, 2008 at 4:52
That would even be better! The landman would be very aware he should be careful!
I wonder how many landmen have found their jobs more difficult after folks have become aware of them? Meaning, no more easy pickins!
Kind of like deer hunting, after the first week of opening season, the deer wise up and they become much harder to harvest!
Permalink Reply by po boy on August 9, 2008 at 12:11
Verbal contracts are usually "worth the paper they are written on"-sorry had to say it. Throw it away unless he accepted a check or the landman is willing to take it to court with credible witness to the agreement.
Permalink Reply by Dan Carter on August 9, 2008 at 9:58
Oral contracts can be binding but not in instances involving real estate. Contrary to someone else's earlier opinion, an O&G lease needs to be written. Tell him to make the cahnges you want.

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