Kay Ltd is an engineering firm. It contracted with the Day Engineering Company to buy a large

engine for the sum of $34,000. The engine at the time of the contract was embedded in concrete

on the floor of Day Engineering Company's factory. It took Day Engineering Company two

weeks to dismantle the engine and load it onto a railway wagon. Unfortunately, some parts

were broken in the process and Kay Ltd refused to accept the engine or to pay any of the agreed

amount. Day Engineering Company sued Kay Ltd for breach of contract.