Bessy's Bovine Beverages required a milk storage tank that would last for at least 10 years. It contacted Superior Stainless Steel, a company with a great deal of experience in the field. Under a contract with Bessy's, Superior designed, manufactured, and delivered a tank. After receiving that tank, Bessy's inspected it, found no signs of problems, and put it into service. Five months later, Bessy's discovered that a substantial amount of milk was leaking onto the ground through a small hole that had developed at the bottom of the tank. That hole remained something of a mystery. The expert evidence has established that it was caused by "microbially-induced internal corrosion". In other words, bacteria had eaten through the metal walls of the tank. Scientists still cannot explain exactly how that process works. At the time of the parties' contract, however, most of the companies that manufacture milk tanks were aware of the phenomenon and knew that problems could be prevented by installing protective linings inside the milk tanks. Superior, in contrast, was completely unaware of the entire issue and the tank that it delivered to Bessy's did not contain a protective lining. The buyer now claims that the seller is liable for breach of contract. The seller, however, relies on the fact that the parties' written contract merely stated the type of tank that it was to create and deliver, the price that was to be paid, and the delivery date .

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