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Colour Co. ('Colour'), a manufacturer of paint, orders a quantity of cans from Tinny Co. ('Tinny') for a new brand of paint that Colour is

Colour Co. ('Colour'), a manufacturer of paint, orders a quantity of cans from Tinny Co. ('Tinny') for a new brand of paint that Colour is planning to make and sell. Each can is to have a capacity of 1 litre, and Tinny agrees to deliver them in packs of 100 tins. The cans are delivered on 1 January. Some of the packs contain 120 cans and 10% of the cans have a capacity of 1.1 litres. Colour does not realise that there are these discrepancies until the cans are filled with paint on 10 January. On 17 January, Colour discovers that a chemical reaction between the paint and the material from which the cans have been made has caused the paint to deteriorate. Tinny knew that this reaction might happen as the result of the chemicals used in some paints, but not all paints contain these chemicals. Tinny was unaware that Colour's paint contained the chemicals and did not mention the chemical reaction to Colour at the time of the contract.

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