Peal

Plaintiff and respondent herein brought this action to recover the sum of $1990, damages alleged to have been sustained by him in lost profits by reason of the failure of the defendant to fulfill and complete the obligations of two certain contracts entered into between the parties. Trial was had before the court without a jury; judgment was entered in favor of plaintiff, and the defendant appeals.

Plaintiff is engaged in the burlap and twine business in the city of Stockton, and the defendant, a foreign corporation doing business in San Joaquin County, is engaged in' the manufacture of cedar pencil slats, using burlap to wrap the shipments thereof.

On February 11, 1931, defendant company signed an order with respondent for 50,000 yards of burlap, to be delivered in monthly shipments from June to December, 1931. Defendant took delivery of 34,000 yards, but failed to take delivery of the balance of 16,000 yards. On July 15, 1931, defendant placed another order with respondent for 150,000 yards of burlap, shipments to begin upon conclusion of the former order. Of this order none was taken by the defendant company.

During the latter months of the year 1931 the defendant company…