Legal and Ethical

Legal and Ethics Environment

Nanetta Lowery

Unit 3 IP

What are the four elements of a valid contract?

* A meeting of the minds between the parties

* Consideration

* An argument of enter into the contract

* The legal competence of each party

Describe the objective theory of contract. How does that theory apply to this case?

It’s a legal concept that a binding agreement that exists between two parties if a reasonable person would judge that an offer has been made and accepted.

No, this theory doesn’t apply because it wasn’t a binding contract, or verbal contract. The Pepsi Co. has used the offer as advertisement.

Why do you think the court held that there was not a valid agreement here?

The judge felt that “no objective person could reasonably have concluded that the commercial actually offered consumers a Harrier jet.” “Instead, this was a classic example of a deal too good to be true. That the advertisement wasn’t a binding agreement between the two parties.

Are advertisements generally considered offers? Why or why not?

Yes, generally advertisements are considered offers, especially when their business is to make a profit. Offering a consumer a day just to get them in to buy and deal and probably some of item.

How does this case differ from a reward situation, where a unilateral contract is formed upon completion of the requested act?

With an reward situation where you don’t receive until you complete the requested action, I think that you would feel very proud of yourself for complete something important to you and receive and gift at the end. With this situation he that he would give 15 Pepsi point and a certain amount of money he could win a jet.

References:

http://www.mycampus aiu-online.com/course/BUSN150/Assignment_Assets/Leonard_v_Pepsi_OpinionAndOrder.pdf

http://www.smallbusiness.yahoo.com/r_article_a_1431_m_1_sc_11_legal_requirements_for_a_contrat_

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Maughan, J. (2010) what are the four elements of a...