A Nigerian company, Lagos Power Ltd., requested that an Ontario company, Oakville Generators Inc, advise on conditions of sale (CIF) on a specic model of generator to be delivered to Lagos on or before January of the following year. Oakville replied using its own standard form containing its conditions of sale, including a price escalation clause and a clause stating that the laws of Ontario would apply. On the bottom of this form was a printed tear-off portion stating that the order was accepted by the buyer"on the terms and conditions stated above and on the reverseI'Lagos signed this form and added the words \"subject to deletion of Clause 14." Clause 14 was the clause that provided for price escalation in the event of unforeseen increased costs. Upon receipt of the tear-off acceptance slip, Oakville entered the order in its order book without noticing the amendment and immediately began ' arranging to manufacture the generator for Lagos. Oakville advised Lagos accordingly. Unfortunately , due to an unanticipated rise in the cost of component parts from Germany , the cost of manufacture of the generator rose 50 percent in the relevant six - month period . Oakville notified Lagos of this development , advising it that the price escala - tion clause would be operative in the circumstances and that the purchase price would rise from Cdns z million to Cons3 million . Lagos protested that it was not liable to pay the increase in price and would hold the Canadian company responsible for delivering* the generator for Cdn$ 2 million . Each of the parties is now contemplating legal action , Oakville to com - pel Lagos to honour the commitment for Cans3 million , and Lagos to compel Oakville to deliver the generator for Cans 2 million