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P advised D that he had available for purchase 1,700,000 feet of timber. P proposed to purchase the timber with his funds and requested D to log said timber on the basis that the two of them would share the profit or loss on the transaction. Prior to the purchase, D advised P that there was no more than approximately 1,000,000 feet of timber on the tract. P purchased $24,300 worth of timber for Handly (D) to process (including furnishing a tractor and hauling the timber). The oral agreement stated profits and losses would be borne equally. There was no requirement that D contribute to P for the purchase price of the timber in the event of loss. A timber yield of only 800,000-900,000 feet contributed to an overall loss on the operation. The gross receipts were $41,629.83. D drew from the proceeds of the sale of the timber the sum of $7,016.88. P received from the proceeds of the sale of the timber the sum of $10,000.00. The trial court found no agreement existed for D to repay P for the initial investment in timber, yet they had agreed to share profits and losses. If found the $17,016.88 drawn by the partners to be unexpended revenues which were to be divided equally. P appealed.

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