Unilateral Price Modification Breach and Contract Rescission

The dispute concerned a contract where a party was obligated to supply a certain quantity of goods at a specified price, but subsequently unilaterally modified the price, leading the counterparty to seek rescission of the contract and damages for non-performance. The court held that a unilateral modification of a fundamental term of a contract by one party, without the consent of the other, constitutes a breach that justifies the termination of the contract and entitles the non-breaching party to seek recourse for the resulting prejudice suffered.