Facts:

The respondent approached the appellant at a particular time at Aba for the purchase of a Dorman Diesel Generating set which the defendant agreed to sell at an agreed sum. A receipt for the purchase, admitted as exhibit ‘A’, was issued in evidence of the transaction. The generating set was to be delivered within 4 days after deposit of full purchase price was made by the respondent. According to the appellant, it later heard from headquarters in Lagos that the last Dorman brand generating set had been sold. It then offered to sell to the respondent another brand which is a Perkins generating set of the same 500 KVA capacity but of a higher quality which the respondent was said to have agreed to buy, instead of the Dorman brand it initially sought to buy. The respondent denied the assertion by the appellant that it agreed to buy a Perkin brand. In the meantime, the Perkins Generator had been delivered to the respondent’s factory while the respondent claimed that it had written a letter earlier which was admitted as exhibit ‘B’, to terminate the agreement. The appellant, however, contended that the Chairman of the respondent company agreed on behalf of the respondent to buy the Perkins brand of generating set and in fact was present when the set arrived from Lagos. The appellant alleged that the Chairman of the respondent gave a note to his engineer to take delivery of the set. The appellant further contended that exhibit ‘B,’ the letter written to terminate the contract was written on the letter headed paper of Polema Industries Ltd. and signed for Polema Industries Ltd. by the Chairman of the respondent and that the said Polema Industries was not a party to the agreement, but the respondent claimed that Polema Industries is one of its subsidiaries. The respondent’s claim was for 310,000,000.00 as special and general damages for breach of contract.