Koffman

This is an appeal from the judgment entered in favor of the defendants. The litigation arose out of the following situation. On November 9th the predecessor in interest of the respondents entered into a contract with the Standard Oil Company for the sale of oil which the former was producing from a well in the Signal Hill field. The material provisions of that contract read as follows: “The first party (respondents’ predecessor) hereby sells and agrees to deliver to the second party during the period of five years from the date hereof, unless this contract is sooner terminated as herein provided the total amount of Crude Petroleum Oil, subject to the maximum limit herein set forth, of a gravity of not less than fourteen degrees A. P. I., at a temperature of sixty (60) degrees Fahrenheit, produced by the first party from its property situate in the Signal Hill Oil Field (here follows legal description).”

Some time prior to June 28, 1924, the well of defendants’ predecessor in interest produced oil containing considerably more than three per cent of water and foreign substance, and for that reason the Standard Oil Company refused to accept it under the contract. On November 20,…