Klein v. Pepsico, Inc.

845 F.2d 76 (4th Cir. 1988)

Purchase the Printed Copy at bsmsphd.com

Nature of the Case

To access this section all you need to do is click here and register.

Facts

Klein (P) was in the market for a used corporate jet. P contacted UJS (P1), who provided information to P about several aircraft including one owned by PepsiCo (D). The aircraft was inspected, and P gave P1 $200,000 as a deposit on the jet and told P1 to offer $4.4 million for the aircraft. The offer was made subject to a factory inspection satisfactory to the purchaser, and a definitive contract. D counter-offered with a $4.7 million asking price. Eventually, a price of $4.6 million was accepted between P1 and D. P1 then planned to sell the aircraft to P for $4.75 million. This was all confirmed in writing by telex. Formal contracts were sent to P and D. The jet was taken to inspection and a list of repairs to be made was completed. In Finding of Fact number 18, JA 85, Judge Williams declared that a contract had been formed at this point. Eight to eleven cracks on the turbine blades were discovered. D agreed to pay for the repair to the engine. The plane was then used to retrieve D's chairman who then asked that the jet be removed from the market. D refused to tender and refused to negotiate further. D claimed that there was only a mere discussion. P sued for breach of contract and specific performance. The district court found that there was a contract as evidenced by the confirming telexes. The court ordered specific performance after a finding that the aircraft was unique. D appealed.