A. Merowitz and Company, Inc. (Merowitz) (plaintiff) agreed to provide materials to Development Corporation of America (DCA) (defendant) in a series of deliveries. Under the purchase order, DCA was to pay invoices from the first half of a month by the 25th and invoices from the second half of a month by the 10th of the following month. The purchase order provided for a 2 percent discount if the invoices were paid on time. DCA failed to pay for several deliveries. Merowitz demanded payment. DCA promised it would pay. When DCA failed to pay for previous or subsequent deliveries, Merowitz demanded that DCA place funds in escrow before Merowitz would complete additional deliveries, but DCA refused. Merowitz sued DCA for breach of contract, seeking payment for past installments. Merowitz filed for bankruptcy, and the bankruptcy trustee, Stephen Kunian (plaintiff), was substituted as plaintiff. The superior court entered judgment in favor of Kunian, finding DCA had breached the contract. DCA appealed.