International Legal and Ethical Issues in Business

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Unit 3 Individual Project-Rights and Obligations
Travis Pernell
American InterContinental University
International Legal and Ethical Issues in Business
Instructor Kerri Holloway
April 3, 2011

This paper will discuss the four elements that make up a valid contract and the objective theory surrounding contracts. This paper will discuss how the objective theory applies to the Leonard v. Pepsico, Inc. case. The paper will also discuss how the court reached its decision to claim that there was not a valid agreement made between the two parties, and it will discuss why all advertisements are not considered offers.

Unit 3 Individual Project-Rights and Obligations In order for a contract to be valid, it must meet four
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No one would have believed that they would win a jet just because they gained so many points in buying a company’s products. The fact that someone would do so would have shocked anyone. It is sort of similar to being offered a million dollars for trying out someone’s special recipe. A person would actually have to lack a good comprehension in the marketing idea or scheme behind an ad or promotional gig. However, if the company assured the man personally, he may have had a case then. Since the ad was made in a general manner, the only assumption that could be made was that the company only intended to draw in more customers by promoting an unbelievable offer. Generally, advertisements are not considered offers because they do not go out to an intended offeree. Advertisements that are made for the sale of goods at specific prices usually are treated as invitations to make an offer (Cheeseman, 2009). The person, or persons, for whom the offer is intended to go to must be clearly indentified. The offeree does not have to be one person as it can include one or more persons or a group of people. The advertisement must also determine what parts of the offer will be binding if it is accepted by the offeree. Therefore, most advertisements are not offers because they only aim at inviting people to purchase their products. Usually, an offer revolves around offering something of value for a certain price and a place would be
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