National Java offers to buy 5,000 pounds of coffee beans from Fair Enough Coffee, Inc. without stating a price. Fair Enough accepts the offer. With respect to this arrangement A. there is a contract, and National Java may set the price at whatever it wishes.
B. there is no contract, because National Java failed to state a price in its offer.
C. there is a contract, and the price will be a reasonable price at the time of delivery.
D. there is a contract, and Fair Enough may set the price at whatever it wishes.

B. there is no contract, because National Java failed to state a price in its offer.

Explanation:

For a Contract to be legally binding, the most rudimentary of contract rules is required which is that of Offer and Acceptance.

In Offer and Acceptance, one party makes an offer and if the other party has no qualms with the offer they will agree with the offer with the condition being that services will be provided to them by the former and they being the latter will accept those services and then settle their side of the bargain. Their side of the bargain will be whatever it is that the former wants for providing the services that they will.

Should the former party not state what it is they want for their services then the latter cannot know what it is they should do to fulfil their side of the contract so the contract cannot stand.

National Java did not state what it wanted for providing 5,000 lbs of coffee beans so Fair Enough Coffee cannot know what to pay them for it. There is no contract.

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