) Gigagar Inc manufactures computer components. It wants to develop a new line of product but realizes that it cannot do so without a complicated device known as a "digital phalange finger." It has tried to design that devise itself but has failed. It therefore sent a letter to Katenben Ltd, another high-tech company, that said: "We have tried to design a digital phalange finger but have failed. We are willing to pay $100 000 for the design of a digital phalange finger. You will have our full co-operation and support." Katenben Ltd responded by saying that it believed that it might be able to design the device. It also indicated that it could not guarantee its results but said that it was still willing to commit itself to the potentially impossible project. Gigagar Inc then wrote back in a letter that said: "We understand your concerns. We do not require any guarantee of success. We also appreciate that, given the complexity of the project, you may decide to drop the matter after some preliminary investigations. Nevertheless, our offer stands-we are willing to pay $100 000 if you successfully design a digital phalange finger." Katenben Ltd spent the next six months communicating with Gigagar Inc and spent more than $75,000 trying to design the device. As it neared successful completion, Katenben Ltd. told Gigagar that it was close to finishing but would need an additional two months to complete its work. Gigagar Inc. said, "Ok", however, thirty days later, Gigagar Inc announced that its own engineers had experienced an unexpected breakthrough and had successfully created a digital phalange finger. Gigagar Inc therefore told Katenben Ltd that its offer of $100 000 was revoked. Three days after Gigagar Inc.'s announcement, Katenben Ltd also successfully produced a working digital phalange finger. It now demands payment of $100 000. Gigagar Inc. refuses.

Would Katenben Ltd be successful if it sued Gigagar Inc.? What remedies would Katenben Ltd. have?

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