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Arkansas Western Gas Co. v. Keller
Citations: 252 Ark. 904; 481 S.W.2d 358; 42 Oil & Gas Rep. 413; 1972 Ark. LEXIS 1700Docket: 5-5929
Court: Supreme Court of Arkansas; June 19, 1972; Arkansas; State Supreme Court
The appellant, a lessee, sought to cancel a lease agreement but the trial court determined that the lease was automatically extended for an additional year due to the appellant's failure to provide written notice of termination by the due date. The lease, established on February 6, 1959, allowed for successive one-year extensions contingent upon payment of an annual rental of $540. The appellant failed to make the payment by February 6, 1971, but subsequently demanded payment on February 17, 1971, and attempted to cancel the lease on February 26, 1971. The lease stipulated that unless the lessee notified the lessor in writing of non-extension by the expiration date, the lease would automatically extend for another year. The court held that the lessee's failure to give timely notice indicated an intention to continue the lease. The appellant's argument that the lease was a year-to-year tenancy requiring both payment and possession for extension was rejected. The court found that the lease's explicit terms allowed for automatic extension unless the lessee provided written notice of termination. Furthermore, the court dismissed the appellant's claim that the lessor's exclusive remedy was to retake possession, affirming that the lessor had the option to cancel the lease or to continue it under its existing terms. The appellees' choice to continue the lease and require full payment for the year was upheld. The trial court's decision was affirmed.