When Charles wanted to start a restaurant business specializing in noodles prepared using only organic grown spices he approached Super Organic Spices PLC ( " SOS") to source for supplies. Charles' investigation revealed that SOS provided a wide range of high quality organic spices at the cheapest prices as compared with other suppliers.Charles and SOS agreed to the prices for the various types of spices required by Charles. They then signed a two-year contract fixing the prices of the spices and setting out the minimum quantities of each type of spice that Charles must purchase on a quarterly basis.

Charles then took out a bank loan to commence and run his business. A few months later, SOS sent a letter to Charles stating that they were increasing the selling price of each type of spice by 20% effective immediately and that if Charles did not agree to this they would immediately cancel all pending orders and stop all future supply. Despite the increase, SOS' new prices, as SOS well knew, were still significantly lower than those of other suppliers. Charles therefore reluctantly agreed to the new prices, since he was also behind his repayments on his bank loan, a fact which is also known to SOS. Advise Charles. [English Law]