law-repudiation cancellation |
REPUDIATION OF CONTRACT
To constitute repudiation, a party to a contract must absolutely and unconditionally refuse to
perform the contract without just excuse. Bans Props., L.L.C. v. Housing Auth. of Odessa, 327 S.W.
3d 310, 315 (Tex. App.—Eastland 2010, no pet.). A party claiming anticipatory breach of a
contract must establish the following three elements: (1) a party to a contract has absolutely
repudiated the obligation; (2) without just excuse; and (3) the other party is damaged as a result.
Pollack v. Pollack, 39 S.W.2d 853, 855 (Tex. Comm’n App. 1931, holding approved); Hauglum v.
Durst, 769 S.W.2d 646, 651 (Tex. App.—Corpus Christi 1989, no writ). The record here does not
indicate repudiation of the settlement agreement by either party.
The law is well-settled in Texas that the repudiation of a lease by a lessor relieves the lessee of any
obligation to conduct any operation on the land in order to maintain the lease in force pending a
judicial resolution of the controversy between the lessee and the lessor over the validity of the
lease. Kothmann v. Boley, 308 S.W.2d 1 (Tex. 1957); Cheyenne Res., Inc. v. Criswell, 714 S.W.2d
103, 105 (Tex. App.—Eastland 1986, no writ). The doctrine of repudiation is a variation of the
doctrine of estoppel, and it applies when the lessor has asserted a clear, unequivocal challenge to
the lessee’s title in and to the interest created by the lease. Cheyenne, 714 S.W.2d at 105.
Lessors who wrongfully repudiate the lessees’ title by unqualified notice that the leases have
terminated cannot complain if the lessees suspend operations pending a determination of the
controversy. Kothmann, 308 S.W.2d at 4.
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