Bullock

Respondent recovered judgment against appellant in the sum of $1,000 as liquidated damages based upon an alleged breach of contract.

Under date of June 9, 1926, respondent and his wife, Winnifred Mae Bullock, as lessees, secured an oil lease upon 160 acres of land in Kern County, from Clarence T. Mills and Elsie J. Mills, the owners of the property. The lease provided that operations for the drilling of a well for oil or gas must be commenced by the lessees within three years from its date. An extension of the drilling requirements for one year could be obtained by the lessees paying to the lessors “Two Hundred Fifty ($350.00) Dollars” on or before the expiration of the three-year period. Two additional yearly extensions might be obtained by making the same payment on or before the end of each year.

Respondent secured the services of L. G. Helm and E. W. Bailey, two brokers, to secure an oil operator who would take over part of the leased land and perform the drilling requirements of the lease. They approached appellant who, on July 8, 1927, paid to the First National Bank of Bakersfield, California, which we will hereafter refer to as the bank, the sum of $1,000, which payment…