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International Business Law

In: Business and Management

Submitted By mskinslow
Words 363
Pages 2
American InterContinental University

International Business Law

11/28/11

A valid contract is an agreement signed by both parties. Contract must meet the requirements of the state law. Contracts are used when doing business to sell, transfer property, services, and other rights. Sales contracts are for selling automobiles and goods as such, while employees are based on service contracts.

The law of contracts prohibits the enforcement of contracts which are too good to be true.
Business contract laws serves to prevent outlandish claims from possibly being enforced. This is known as the law of contracts known as the Objective Theory of Contracts,

The Objective Theory prevents interpretations of any law of a contract from enforcing ridiculous outrageous claims that are in advertisements from an offer of a contract. The most famous of such was the 11995 Pepsi commercial which offered a Harrier jet as an award for pepsi points. The ad stated that the winner would receive a jet for 7 million points. The overall method was to drink the pepsi brand and redeem points from the bottle cap.

The company also allowed points to be purchased for ten cents individually. Although
The normal cost of a Harrier jet is $23 million dollars, John Leonard thought he saw a brilliant opportunity. This man borrowed money from family and friends and attempted to retrieve the
Harrier jet.

The company responded by sending free coupons and a letter stating that the business law did not have to oblige and provide the jet. They also stated that this was meant to be humorous and entertaining. In my opinion this was false advertisement. This was simply an attempt to generate more revenue. Even though the claim was outlandish, some people trust and

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