O & G Carriers, Inc. v. Smith Energy 1986-A Partnership

Suppose the existence of two business entities, A & B, that by agreement pooled resources to seek a profit together in a specific venture. A & B further contracted between themselves to share the responsibilities and expenses of their enterprise in particular proportions. Assume further that the joint undertaking was receiving a constant income stream provided by a third company, C, which purchased the product of the venture by paying A & B separately and not into a common fund.

A & B then found themselves in disagreement over what the contract meant, specifically with regard to what expenses…