Hour-Made Orange Juice and Farmer Smith, both merchants in the orange business, have a long-term written contract for the sale of oranges. The agree price is $200 per carload, 150 carloads per month. After five months, Farmer Smith writes to Hour-Made, stating "Our transportation and labor costs have increased significantly; we will not continue to ship unless you agree to pay$220 per carload".

Base on the information in the scenario, what is the legal course of action for either merchant?

(A) Farmer Smith has a pre-existing duty to provide oranges at $200 per carload.

(B)Farmer Smith is in breach of his contract, unless Hour-Made agrees to the contract modification he is requesting.

(C) Hour-Made does not have to accept Smith's demanded price modification, but if it does decide to, no addtional consideration is required to support it.

(D All of the above.