Pepsi Company v. Leonard Case study
Did Pepsi Make an offer?
Pepsi did not make an offer as it was later determined by the court, which found out that the advertisement of the jet did not include an offer under the consideration of the second restatement of contracts. Additionally, the court also discovered that even if the advertisement was made on the television, no reasonable person could believe that any company or organization could offer a jet that costs twenty-three million US Dollars for seven hundred million US dollars and therefore, the deal was just mere puffery. Lastly, the company claimed that the advertisement featured a callow youth who was highly incompetent to be trusted with an aircraft of the Marine Corps. Therefore the advertisement was not realistic and could not be treated as an offer. Don't use plagiarised sources.Get your custom essay just from $11/page
Acceptance of the claim: John Leonard did not accept the claim because he met all the requirements that Pepsi had put in place to get the Harrier Jet. Leonard had developed a pool of investors that consisted of Pepsi drinkers and was, therefore, able to raise the fifteen PepsiCo Points and an additional check of seven hundred thousand US Dollars for the remaining points plus the shipping and handling costs.
Contract
There was no contract between Pepsi company and Leonard because after all the Pepsi claimed that the advertisement was just but a joke and that there was no signed agreement between the two parties on the offer (Cbsnews.com, 2020). The court also proved that the value of the alleged contract, as presented by Leonard, meant that it was under provisions of the Fraud’s statutes and that the statute required that the agreement between two parties should be in a written form. In this case, the statute’s provisions were not fulfilled, and therefore there was no contract between the Pepsi company and Leonard.
References
Flashback 1996: Man sues Pepsi for not giving him a Harrier Jet. Cbsnews.com. (2020). Retrieved 12 March 2020, from https://www.cbsnews.com/news/1996-man-sues-pepsi-for-not-giving-him-a-harrier-jet/.