Wilbur Reed operated a small greenhouse in Montana. He ordered most of his plants from McCalif Grower Supplies. Reed often supplied local Kmart and Ernst stores with his products. During the holiday season, he agreed to provide them with poinsettia plants. Reed ordered the plants from McCalif, and McCalif had growers send the plants to Reed from Colorado. Reed's employee accepted the boxes at the air port and did not note any damages to the packaging. However, when the boxes were opened, the poinsettias appeared damaged. Reed contacted McCalif and notified it that the poinsettias were damaged as a result of poor packing. McCalif advised Reed to report the damages to the carrier, Delta Airlines. Delta paid Reed $924.66 in compensation. McCalif was not able to supply Reed with more poinsettias before the holiday season. As a result, Reed lost accounts to many of the stores. McCalif sued Reed for payment for the poinsettias, $3,223.56. Reed refused to pay and argued that McCalif had failed to deliver according to their contract. Whom did the court agree with?