I leased some mineral rights from my farm to an oil company. I was paid with a Wells Fargo bank draft. It said payable in forty-five banking days.
I went to my Wells Fargo branch to deposit it in my account. I had not seen a bank draft before and asked an account representative to help me. I followed the instructions. It was not like a check; there was a separate page that was filled out and signed. I did not sign the back of the draft. The forty-five banking days came and went, and I did not get my money. I called the bank and was told there was a mistake. I received the money on the fifty-third banking day. I was told that the draft was not properly endorsed and the processing center sent it back to my branch for a Lack of Endorsement Guarantee, and this was the cause of the delay.
I would like to cancel my lease with the oil company. I did not have any control over what happened at the bank and did not get paid in the forty-five days. Do I have a just reason for canceling the lease?
If you had not been paid, you may have had a legal right to cancel, but you cashed the draft and obtained the funds, so it is doubtful that you can simply back out of the deal (the oil company isn't at fault for the Wells Fargo oversight in processing the draft). If there is a right to cancel the contract, it should be spelled out in the paperwork you received for the lease. If you need help interpreting the lease documents or understanding whether you have any additional rights that might affect the lease, consult an attorney.
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If you had not been paid, you may have had a legal right to cancel, but you cashed the draft and obtained the funds, so it is doubtful that you can simply back out of the deal (the oil company isn't at fault for the Wells Fargo oversight in processing the draft). If there is a right to cancel the contract, it should be spelled out in the paperwork you received for the lease. If you need help interpreting the lease documents or understanding whether you have any additional rights that might affect the lease, consult an attorney.
