Bio-Sphere Ltd, a company which is a leader in green energy technology, contacted Clavin, a research consultant, proposing that if Clavin could perfect the technology for power storage, namely: "create a storage medium with 100% recharge/discharge properties within 24 months of the date of this correspondence," Bio-Sphere Ltd would pay Clavin $2 million for the technology. Eighteen months later, Clavin forwarded plans for an advanced battery with "100% recharge/discharge capabilities." Which of the following statements is correct? 1) Bio-Sphere Ltd has not made an offer since Clavin could only accept by performing. 2) Bio-Sphere Ltd has not made an offer since it lacked intent. 3) If Bio-Sphere Ltd refuses to pay Clavin it will be in breach of contract. 4) No contract exists between Bio-Sphere Ltd and Clavin.