Stand Glue Corp. offered to sell Macal, Inc., all of the glue it would need in the manufacturing of its furniture for one year at the rate of $25 per barrel, F.O.B. seller's city. Macal accepted Stand's offer. Four months later, due to inflation, Stand wrote to Macal advising Macal that Stand could no longer supply the glue at $25 per barrel, but offered to fulfill the contract at $28 per barrel instead. Macal, in need of the glue, sent Stand a letter agreeing to pay the price increase. Macal is:

1. Legally obligated to pay only $25 per barrel under the contract with Stand.
2. Legally obligated to pay $28 per barrel under the contract with Stand.
3. Not legally obligated to purchase any glue. Stand has breached the contract.
4. Legally obligated to pay $28 per barrel due to the fact inflation represents an unforeseen hardship.