Harrier Jet Case Study
What are the 4 elements of a valid contract? How do …show more content…
There was never a meeting between either parties. It is possible that the advertisement was misleading and possibly false, but ultimately there was never a contract made between either party so it would not hold up in the court of law.
What is the objective theory of contracts?
The objective theory of contracts is the perception from an external source that examines the contract between parties without being biased. The contract must have all the elements of a contract, and is then determined if an offer was made and accepted. Only the facts are taken into account if it can be concluded that each party will be bound by the terms then the contract can be entered.
How does the objective theory of contracts apply to this case?
In this particular case, the company presented an offer of a Harrier jet to anyone who could reach the 7 million points required. The drink company did not intend to give a jet and it was merely a joke, but the man took the company very seriously. The courts looked at the case and determined that there was not a contract because they did not meet and it wasn't reasonable for a sane person to believe they could receive a jet worth $23,000,000.00. The judge was the unbiased individual that determined that no one could take the commercial as a contract