Legal Question in Civil Litigation in Texas

gas royalty contract

We were approached by a landman representing a large energy company regarding payment to lease our mineral rights on our property.

We were assured that we had 50% of the mineral rights. We signed a contract and an 'order of payment' form, which stated that we would be paid $9,295+ for a signing bonus. The form stated that we would receive payment within 30 days, after they had verified that we, indeed, had the rights. My husband asked, ''Are you sure we have the mineral rights?'' The landman said, ''That's our job to ensure you have it. We are sure you have 50%, but let me know if your check is larger when you get it; that will mean you have more than 50%.'' The two shook hands and we had an agreement we thought.

We received the check in the amount originally stated, which, based on our agreement with the landman representing the large energy company, meant that they had verified that we had the mineral rights as stated.

We deposited the check in our bank; however, we subsequently received a call from the landman's superior stating payment had been stopped on the check and we didn't have the mineral rights stated.

Isn't a handshake and verbal agreement still legal in Texas? Are they liable for the money?


Asked on 9/30/08, 11:49 am

1 Answer from Attorneys
James Grissom Law Office of James P. Grissom

Re: gas royalty contract

You need to read carefully the 'signed contract" and the "order of payment". Probably precludes any oral agreements and says all agreements between the two of you are in writing.

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Answered on 9/30/08, 12:17 pm


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