This section contains the nature of the case and procedural background.

In 1983 P contracted to sell a portion of his anticipated potato crop to D in order to secure financing. The parties utilized a 'form' contract that had been developed through negotiations between D and the Potato Growers of Idaho (PGI). P was to receive a base price if the potato crop contained a certain percentage of potatoes weighing ten ounces or more. If the crop contained a higher percentage, the price would be increased. If the crop contained a lesser percentage of ten-ounce potatoes, the price would be reduced. The contract also provided D with the option to refuse or accept delivery of the potatoes if they contained less than ten percent ten-ounce or larger potatoes. P contracted to sell only a portion of his crop to D. Unexpected weather conditions cut short P's efforts, and his potato crop consisted of only eight percent ten-ounce potatoes. P was entitled to only $2.57 per hundredweight for his potatoes under the terms of the D contract. The D potatoes did meet the requirements under another processing contract and for the 'fresh pack' market. After four days of delivery to D, P refused to deliver any more potatoes to D. P sought a declaratory judgment that the contract was not enforceable. P then sold the remaining potatoes in the 'fresh pack' market for $4.69 per hundredweight. The proceeds were placed in a court-controlled bank account pending resolution of this case. D got the verdict and P appealed.

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