Kirkwood Agri-Trade, a Corporation, Cross v. Frosty Land Foods International, Inc., an Alabama Corporation, Cross

VANCE, Circuit Judge:

This is a diversity suit governed by Alabama law. On November 24, 1976 Kirk-wood Agri-Trade, Inc. contracted with Frosty Land Foods International, Inc. to purchase Frosty Land’s entire production of unscalded Mountain Chain Tripe 1 from December 1, 1976 to December 31, 1977 at a price of $1.20 a pound. The contract estimated that production would be ten to twelve thousand pounds a month, to be shipped “semi-monthly” or when twenty to twenty-five thousand pounds were ready. Such output contracts are valid under Alabama law. Ala. Code § 7-2-306; see Darden v. Ogle, 293 Ala.…