Towle

On or about May 25, 1954, appellant Towle-George Turkey Log Company, a partnership, agreed to buy 190,000 pounds of a food product known as turkey log from appellee Norbest Turkey Growers Association at 99 cents a pound. Appellant agreed to pay Norbest for the turkey logs as they were withdrawn from storage, and to pay for the entire amount by August 1,1954. After 100,000 pounds had been withdrawn and paid for by the partnership, Norbest was to issue the partnership a credit of four cents a pound on said 100,000 pounds, the balance of 90,000 pounds to be paid for at 95 cents a pound. Thus, the effective price for the entire lot was 95 cents a pound.

On June 10, 1954, appellant entered into a contract to sell these same turkey logs to Turkey Log Corporation of Illinois (called Illinois) for $1.05 a pound. Illinois agreed to pay appellant for the turkey logs as they were delivered to Illinois’ order, the total purchase price payable on or before August 1, 1954. The two agreements were entirely separate.

Until about August 10, 1954, the parties generally observed the following procedure : From time to time, Illinois ordered turkey logs from appellant, and appellant in turn placed…