C.R. Daniels, Inc. v. Yazoo Manufacturing Co.

Yazoo (defendant) ordered 20,000 grass-catcher bags from Daniels (plaintiff); after learning of cracked-chute problems on some bags, Yazoo attempted to cancel a later purchase order without explanation, but continued holding the bags, trying to sell them, indicating it expected future deliveries, and only informed Daniels of the full extent of the defects (92% of bags cracked) after Daniels's attorney demanded payment and inspected Yazoo's inventory. Daniels sued to recover the unpaid price under a Mississippi statute allowing sellers to recover the price of accepted goods even if damaged; Yazoo argued it never accepted the bags and counterclaimed for breach of warranty.