Well according to [ame=http://en.wikipedia.org/wiki/Purchase_order]Wikipedia[/ame] "Acceptance of a PO by a seller usually forms a once-off contract between the buyer and seller" so i would give them a call and insist on only paying the agreed (original) price.
They really, really should have advised you about the price increase. Them just going ahead with it would quickly make me doubt the company's morals, even if it is legal.
However, seeing it from their perspective, why should they lose profit or perhaps even make a loss when their costs go up by honouring prices? You can see exactly why they put that small print in and exactly why there is no law against them changing prices. Even more so in this day and age when the price of raw materials rapidly fluctuates.
Imagine if you had a business and the price of producing/buying in one of your products changed dramatically (through no fault of your own). Someone places an order from a flyer and you're legally obliged to honour that price. You would be screwed, and less than happy.
In this case I would just be annoyed about them not informing you. I would expect most decent companies to at the least inform you, and at most to meet you in the middle or shave a bit off since you expected to be paying another price, and them losing a bit of profit and keep a customer is much better than keep the profit and lose the customer.
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