No. The judge said the company can't get a second chance. The lease contract was very clear: if you don't pay on time, the lease automatically ends. This isn't a 'forfeiture' where the court can step in to be fair; it's just the contract doing exactly what it said it would do. The court might help if an outsider, like the post office losing the check, made the mistake. But because the mistake was made by Phillips' own employee, it's Phillips' fault, and they lose the lease. Even though it seems harsh, that's what the law requires.

No, Phillips can't keep the lease. The court said that the lease ended as the rules said it should when Phillips missed the payment. The court also said that Phillips can't use the excuse of an employee's mistake to avoid the lease ending. This is because the mistake was made by someone working for Phillips, not by someone outside the company like the post office. The court said that even though this might seem unfair, it's what the law in Oklahoma says should happen.

No. Under Oklahoma law, equitable relief is not available to prevent the termination of an 'unless' lease when the failure to pay delay rentals is due to the lessee's own employee's mistake. The court reasoned that an 'unless' lease automatically terminates by its own terms if the delay rental is not paid on time; this is a termination by contractual limitation, not a forfeiture that a court of equity can relieve. Oklahoma precedent strictly construes such leases against the lessee and holds that time is of the essence. The court distinguished prior cases where equity had intervened, noting that relief was granted only when the mistake was caused by an independent third-party agency, such as the postal service or a depository bank. Since the error here was caused by an employee of Phillips, under its direct supervision and control, the responsibility lies solely with the lessee, and the harsh result of termination must be upheld.

No. The lease automatically terminated upon Phillips's failure to pay the delay rental by the specified date. The court found that under Oklahoma law, such a termination does not constitute a forfeiture but rather a termination by agreement. Equitable relief is not applicable as the error was within Phillips's control and not due to an independent agency's mistake. The court emphasized that time is of the essence in 'unless' leases, and payment of delay rental is a condition precedent to continuing the lease. The court distinguished this case from previous cases where equitable relief was granted, noting that those cases involved errors by independent agencies, not the lessee's own employees. The court concluded that under Oklahoma law, denial of equitable relief, though harsh, was proper given the circumstances of this case.

Phillips Petroleum Co. v. Curtis

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