Herbert Oil Co. of Texas v. McCaskey

40 S.W.2d 834, 1931 Tex. App. LEXIS 1203
CourtCourt of Appeals of Texas
DecidedMay 28, 1931
DocketNo. 2545.
StatusPublished
Cited by1 cases

This text of 40 S.W.2d 834 (Herbert Oil Co. of Texas v. McCaskey) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Herbert Oil Co. of Texas v. McCaskey, 40 S.W.2d 834, 1931 Tex. App. LEXIS 1203 (Tex. Ct. App. 1931).

Opinion

WALTHALL, J.

On March 31, 19,27, Morgan E. McCaskey, appellee, a professional geologist, and Herbert Oil Company of Texas, a .Texas corporation, appellant, entered into a written contract in the nature of a joint venture, for the purpose, of exploration of lands for the production of oil and gas. Appellee brought this suit based upon that contract. It reads as follows:

“Agreement.
“This agreement made and entered into ■ this 31st day of May, A. D. 1927, by and between the Herbert Oil Company of Texas, a Texas Corporation, party of the first part, and Morgan E. McCaskey, party of the second part, witnesseth:
“Whereas first party is desirous of obtaining for the benefit of itself and second party oil and gas leases, royalties or land in fee, in favorable territory; and to obtain for the benefit of both parties Blocks of oil and gas leases,
“Whereas second party has knowledge as a geologist regarding territory which he considers favorable for oil or gas.
“Now, therefore, in consideration of the above covenant and agreement hereinafter set forth, the said parties agree as follows:
“1. Said second party, agrees to select favorable tracts of land on which oil and gas leases or royalties or fee should be acquired and to make such recommendations as may be necessary to first party and seek by scouting- drilling wells and prospective locations, proven, semiproven or wild-cat territory, such favorable tracts of land.
“Said second party shall in his discretion investigate the terms and conditions under which the said properties may or can be purchased or acquired, and report the same together with his recommendations to the party of the first part, but it is expressly .agreed and understood that party of the second part shall in no wise be authorized to enter into’ any contract or purchase for or in behalf of the party of the first part unless the said party of the first part has given its authority in writing to execute'in specific contract and it is further agreed that the properties acquired under such express authority shall be obtained in the name of the Herbert Oil Company, of Texas, party of the first part unifess otherwise authorized and directed by the party of the first part.
“2. Said party of the first part agrees that upon receipt of the above it will, at its option purchase or acquire such’ oil and gas leased or royalties or fee as it may find feasible or acquire leases in blocks by purchase or agreement with the landowners, lessee or lessor in the territory indicated as favorable by the party of the second part.
“It is agreed that neither of the parties hereto shall make charges for services, information, time or effort in connection with the carrying out of this contract nor shall they charge any salary, it being the purpose and intent of this contract that second party shall have charge of scientific work, selection and recommendation of properties and first party shall have charge of all business details.
“4. In consideration of the information given and services rendered by the party of the second part, first party agrees to pay to the party of the second part, one-half of the net profits from the sale of any and all properties acquired by the party of the first part upon the recommendation and information furnished by the party of the second part, only as to properties which the party of the second part discovers and reports upon independently.
“5. It is further agreed and stipulated by and between the parties hereto that the party of the first part may without the advice, consent or permission of the party of the second part, dispose of any or all of the properties which may or shall be acquired pursuant to the terms of this contract as related in the preceding paragraph.
“6. It is further agreed by and between the parties hereto that the party of the first part shall advance to the party of the second part a sum or sums of money not to exceed in the aggregate, two Hundred fifty ($250.00) dollars per month for the duration of this contract, exclusive of expenses as herein-after set out.
“7. It is further agreed that the party of the first part shall advance the field expenses of the party of the second part together with the expenses of an assistant whenever the services of one shall be deemed necessary by the party of the second part.
“Party of the second part agrees to submit on or before the tenth and twenty fifth day of *836 each month an itemized statement of the expenses incurred by him in the pursuance of his duties for and in behalf of the party of the first part which have accrued prior to the dates hereinbefore mentioned.
“It is further agreed that the party of the first part shall furnish to the party of the second part an automobile to be used exclusively by the party of the second part except during the time that the said automobile is in the City of Fort Worth, Tarrant County, Texas, during which time it shall be returned to and remain in the possession of the party of the first part.
“8. It is further agreed and stipulated by and between the parties hereto that in the event that any of the properties acquired by the party of the first part of which the party of the second part by the terms of this contract is entitled to one-half of the net profits is sold otherwise disposed of by the party of the first part, the party of the first part in determining the amount of the net profits shall deduct for the expenses of acquisition and disposition together with all other items as advances and expenses made or paid by the party of the first part to or for the party of the second part.
“9. It is further agreed that in the event the properties, either by sale or otherwise do not yield a net profit as hereinbefore stated, the party of the second part shall not be obligated to return any of the said advances and expenses.
“10. It is agreed that said party of the first part shall keep and maintain an accurate set of books showing all receipts and disbursements and that same shall be open to the inspection of second party at his request.
“11. Should party of the first part be desirous of having any particular well, royalty or lease value, leases or tracts of land investigated by second party which itself might designate, second party shall be obligated to make such investigation and report without cost to party of the first part only to the extent of second parties personal expenses. Second party shall not be obligated to perform work of the above nature in excess of eight days in any one month.
“12.

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Cite This Page — Counsel Stack

Bluebook (online)
40 S.W.2d 834, 1931 Tex. App. LEXIS 1203, Counsel Stack Legal Research, https://law.counselstack.com/opinion/herbert-oil-co-of-texas-v-mccaskey-texapp-1931.