This section is from the book "The Law Of Contracts", by William Herbert Page. Also available from Amazon: Commercial Contracts: A Practical Guide to Deals, Contracts, Agreements and Promises.
This agreement made and entered into this --------- day of ---------, by and between C. D., of ---------, first party, and E. F., of ---------, second party, witnesseth that:
Whereas first party is the owner of a lease for oil and gas mining purposes executed by one A. B., of --------, covering the following described land situate in ---------, to-wit: [insert description of premises].
Whereas first party has this day executed and delivered to second party an assignment in quadruplicate of the above-described oil and gas mining lease on the form and according to regulations prescribed by the Secretary of the Interior, for which the second party has paid the first party the sum of --------- dollars
Now, therefore, in consideration of the premises and the payment of said sum of --------- dollars ($--------), first party further agrees to execute such further assignments, instruments, affidavits and papers as are necessary to secure the approval of the Secretary of the Interior to the assignment of the above-described oil and gas mining lease to the second party.
In case it shall be determined in the future that said lease is invalid, the said lessee covenants to repay to the said assignee all payments made by said assignee in consideration of said assignment; and to repay to the said assignee all the further damages which the said assignee may sustain by reason of the invalidity of said lease.
In witness whereof, etc.
Even without an express covenant warranting the validity of the lease which was assigned, it has been held that such contract will be construed as,implying a warranty. Kokomo Oil Co. v. Bell, - Okla. -, 198 Pac. 326.
See references under Sec. 3795.