Neumiller Farms, Inc. v. Cornett

Plaintiffs were potato farmers and Defendant was a corporation engaged in brokering potatoes from the growers to the makers of potato chips. The parties signed a contract, in which, Plaintiffs agreed to deliver twelve loads of potatoes to Defendant and Defendant agreed to pay $4.25 per hundredweight. The contract required the potatoes be grade number one and to buyer satisfaction. Plaintiff produced 20 to 24 loads of potatoes, and Defendant accepted three as $4.25 per hundredweight. Thereafter, the price dropped to $2.00 per hundredweight. Plaintiff tendered more loads of potatoes and Defendant rejected them for not being chip quality. Plaintiff responded by having samples of their crop tested by an expert who said they were of suitable quality. After receiving a letter from Plaintiff demanding performance, Defendant agreed to try one more load. Plaintiff tendered another load of potatoes, which had been purchased by another grower. Defendant claimed dissatisfaction with the l oads. Plaintiffs offered to purchase the remaining nine loads from other growers but Defendant refused this offer. Plaintiffs’ efforts to sell the remaining loads of potatoes were hampered by poor market conditions.