E. F. Drew & Co. v. Southern Grocery Stores, Inc.

Layton, C. J.,

delivering the opinion of the Court:

On April 8, 1929, the plaintiff contracted to sell to the defendant a kind of colored oleomargarine, known as “Spredit,” at an agreed price of twenty-six cents per pound. On June 8, 1929, Rogers Inc., a fully owned subsidiary of the defendant conducting a number of stores in which the commodity was to be sold, addressed a letter to the plaintiff expressing doubt as to the advisability of carrying forward the contract because of the heavy license fees required to be paid for the sale of the commodity under a federal statute, which license fees…