Was there a contract?
Question
Please discuss the following case study and determine whether there should be a valid contract between Leonard and Pepsi Co. Pepsi Co ran an ad and promotional campaign in 1996 called the drink Pepsi get stuff campaign. The enormously successful campaign allowed customers to claim prizes in exchange for points on Pepsi co beverage containers, and points could be combined with cash payments to obtain prizes. The campaign was so successful that the second round of ads and promotions was not run because the prizes were nearly exhausted. In one television ad, Pepsi co pictured a Harrier jet as a satirical spoof on the prizes available under the campaign. The jet was offered in the ad for 7 million beverage points. Harriet jets are made only for the marine corps and are not sold in the open market. They cost $33.8 million each and can be produced at a rate of only one dozen at a time. John Leonard, a 21 year old student called Pepsi co and was told he would need to drink 16.8 million cans of Pepsi in order to obtain the required points. He was also told that he had the option of buying Pepsi co points for 10 cents each. Leonard developed a pool of investors Pepsi drinkers and delivered 15 Pepsi co points and a check for $700,008.50 for the remaining 6,999,985 points plus shipping and handling. Pepsi co refused to provide Leonard with harrier jet because it said the ad was not an offer but a joke. Leonard filed sue but Pepsi co had already filed a pre emotive suit asking that Leonard’s suit be dismissed and declared frivolous and that Pepsi co should be reimbursed for its legal expenses. Did Pepsi co make an offer? Did Leonard accept? Was there a contract? Why or why not. Discuss.
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