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After lengthy and intense negotiations, a verbal agreement is reached between a buying organization and...

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After lengthy and intense negotiations, a verbal agreement is reached between a buying organization and a finished goods supplier. The president of the buying organization sends a letter contract to the supplier. The supplier immediately ships goods to the buying organization and invoices for the material, before any contract is signed. At this point, is the buying firm obligated to pay the invoice?

A.

Yes, the buying firm must pay for anything that the supplier ships whether agreed to or not.

B.

Yes, as a letter contract Is a valid pre-contractual agreement.

C.

No, as the buying organization did not issue a formal purchase order.

D.

No, as there was only a verbal agreement.

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