An entirety clause is a provision in a mineral lease or deed that stipulates that if the property is divided subsequent to the lease being granted, the royalties must also be divided. In other words, if the property owner sells a portion of the property, the lessee will be required to pay additional royalties. This provision ensures that all parties receive their fair portion.
An entirety clause is a provision in a mineral lease or deed that stipulates the division of royalties if the property is divided subsequent to the lease being granted. This means that if the property owner decides to sell or lease a portion of the land, the royalties from the extracted oil and gas in that portion will be shared between the original owner and the new owner. For instance, let’s consider John who owns a piece of land and leases it to an oil company for drilling. The lease agreement includes an entirety clause. After a few years, John decides to sell a portion of the land to his neighbour, Jane. If the oil company continues to extract oil and gas from the entire property, the royalties will be divided between John and Jane. John will receive royalties for the portion of the land he still owns, while Jane will receive royalties for the portion she purchased. The purpose of an entirety clause is to ensure that all parties involved are fully aware of their rights and responsibilities in the event of property division. It also serves to prevent disputes between the original owner and any subsequent owners.
An entirety clause is a provision in a contract that states that the entire agreement between the parties is contained within the contract and that any prior agreements or understandings are superseded by the contract.
Yes, entirety clauses are generally enforceable, and courts will typically uphold them as long as they are clear and unambiguous.
Yes, an entirety clause can prevent a party from introducing evidence of prior agreements or understandings that are not included in the contract.
If there is a conflict between an entirety clause and another provision in the contract, the entirety clause will typically prevail and the entire agreement will be considered as contained within the contract.
An entirety clause can be waived or modified if both parties agree to do so in writing.
Some jurisdictions may impose limitations on the enforceability of entirety clauses, such as requiring that the clause be prominently displayed or specifically referenced in the contract.
To ensure enforceability, an entirety clause should be clear, unambiguous, and prominently displayed within the contract.
An entirety clause can provide some protection against claims of fraud or misrepresentation by limiting the evidence that can be introduced to support such claims.
The purpose of including an entirety clause is to ensure that the entire agreement between the parties is contained within the contract and to prevent disputes over prior agreements or understandings.
It is always advisable to seek legal advice before including an entirety clause in a contract to ensure that it is drafted in a way that will be enforceable and provide the intended protection.
This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.
This glossary post was last updated: 17th April 2024.
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