diff --git a/domain-model.md b/domain-model.md
new file mode 100644
index 00000000..bd69438e
--- /dev/null
+++ b/domain-model.md
@@ -0,0 +1,10 @@
+## Domain model Basket class
+- NOTE: Bagel is an enum
+
+| Variables | Methods                             | Scenario                                       | Output |
+|-----------|-------------------------------------|------------------------------------------------|--------|
+|           | `boolean add(Bagel bagel)`          | Basket is full                                 | false  |
+|           |                                     | Basket is not full                             | true   |
+|           | `boolean remove(Bagel bagel)`       | Bagel is not in basket                         | false  |
+|           |                                     | Bagel is in basket                             | true   |
+|           | `void setCapacity(int newCapacity)` | Manager wants to change the capacity of basket |        |
\ No newline at end of file
diff --git a/src/main/java/com/booleanuk/core/Bagel.java b/src/main/java/com/booleanuk/core/Bagel.java
new file mode 100644
index 00000000..e1e13ecf
--- /dev/null
+++ b/src/main/java/com/booleanuk/core/Bagel.java
@@ -0,0 +1,8 @@
+package com.booleanuk.core;
+
+public enum Bagel {
+  Plain,
+  Everything,
+  Egg,
+  Rainbow,
+}
diff --git a/src/main/java/com/booleanuk/core/Basket.java b/src/main/java/com/booleanuk/core/Basket.java
index df7a20aa..7e00a325 100644
--- a/src/main/java/com/booleanuk/core/Basket.java
+++ b/src/main/java/com/booleanuk/core/Basket.java
@@ -1,5 +1,37 @@
 package com.booleanuk.core;
 
+import java.util.ArrayList;
+import java.util.List;
+
 public class Basket {
+  public int capacity = 3;
+  private List<Bagel> bagels = new ArrayList<>();
+
+  public int size() {
+    return bagels.size();
+  }
+
+  private boolean isFull() {
+    return this.size() == this.capacity;
+  }
+
+  public boolean add(Bagel bagel) {
+    if (this.isFull())
+      return false;
+
+    this.bagels.add(bagel);
+    return true;
+  }
+
+  public boolean remove(Bagel bagel) {
+    if (!this.bagels.contains(bagel))
+      return false;
+
+    this.bagels.remove(bagel);
+    return true;
+  }
 
+  public void setCapacity(int newCapacity) {
+    this.capacity = newCapacity;
+  }
 }
diff --git a/src/test/java/com/booleanuk/core/BasketTest.java b/src/test/java/com/booleanuk/core/BasketTest.java
index e35771b3..b2616618 100644
--- a/src/test/java/com/booleanuk/core/BasketTest.java
+++ b/src/test/java/com/booleanuk/core/BasketTest.java
@@ -4,5 +4,61 @@
 import org.junit.jupiter.api.Test;
 
 class BasketTest {
+  @Test
+  public void testAddBagel() {
+    Basket basket = new Basket();
+    basket.add(Bagel.Plain);
+    Assertions.assertEquals(basket.size(), 1);
+    basket.add(Bagel.Rainbow);
+    Assertions.assertEquals(basket.size(), 2);
+  }
 
+  @Test
+  public void testAddBagelToFullBasket() {
+    Basket basket = new Basket();
+    Assertions.assertEquals(basket.capacity, 3);
+
+    Assertions.assertTrue(basket.add(Bagel.Plain));
+    Assertions.assertTrue(basket.add(Bagel.Rainbow));
+    Assertions.assertTrue(basket.add(Bagel.Egg));
+
+    Assertions.assertFalse(basket.add(Bagel.Egg));
+    Assertions.assertEquals(basket.capacity, 3);
+  }
+
+  @Test
+  public void testRemoveBagel() {
+    Basket basket = new Basket();
+    basket.add(Bagel.Plain);
+    basket.add(Bagel.Plain);
+    basket.add(Bagel.Rainbow);
+
+    Assertions.assertTrue(basket.remove(Bagel.Plain));
+    Assertions.assertTrue(basket.remove(Bagel.Plain));
+  }
+
+  @Test
+  public void testRemoveNonExistingBagel() {
+    Basket basket = new Basket();
+    Assertions.assertFalse(basket.remove(Bagel.Plain));
+    Assertions.assertFalse(basket.remove(Bagel.Rainbow));
+    Assertions.assertFalse(basket.remove(Bagel.Egg));
+  }
+
+  @Test
+  public void testSetCapacity() {
+    Basket basket = new Basket();
+    Assertions.assertEquals(basket.capacity, 3);
+    Assertions.assertTrue(basket.add(Bagel.Plain));
+    Assertions.assertTrue(basket.add(Bagel.Rainbow));
+    Assertions.assertTrue(basket.add(Bagel.Egg));
+    Assertions.assertFalse(basket.add(Bagel.Egg));
+
+    basket.setCapacity(5);
+    Assertions.assertEquals(basket.capacity, 5);
+
+    Assertions.assertTrue(basket.add(Bagel.Egg));
+    Assertions.assertTrue(basket.add(Bagel.Egg));
+    Assertions.assertFalse(basket.add(Bagel.Rainbow));
+  }
 }