H. J. Mcgrath Co v. Wisner

55 A.2d 793 (1947)

Facts

P agreed to grow tomatoes on six acres of his farm in Baltimore County, and to sell and deliver all the tomatoes grown thereon during the season of 1944 to the cannery of D at a price of $28 per ton. A clause in the contract stated that if P failed to deliver to D any part or all of the Tomatoes herein contracted for, D will sustain substantial damages, uncertain in amount, and not readily susceptible of proof and as such P will pay to D the sum of $300.00 as liquidated damages and not as a penalty. P did not deliver all his crop and D deducted $300 from the balance due P. P sued for the $300. D defended in that the $300 was a setoff.  P demurred, and it was sustained. Evidence showed that P made $275 extra by selling part of his crop on the open market. P got the verdict for $300, and D appealed.