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Contracts Keyed to Farnsworth
Klein v. PepsiCo, Inc
Facts
Plaintiff began searching for a used jet. He contacted Patrick Janas, President of UJS, who informed him of the aircraft owned by Defendant. After inspection by his pilot and mechanic, Plaintiff had the jet flown to Arkansas for personal inspection. Thereafter, Plaintiff gave Janas $200,000 and told Janas to offer $4.4 million for the aircraft. Janas telexed the $4.4 million offer to James Welsch, who served as the broker for Defendant. Welsch counter-offered with $4.7 million. After negotiation, Janas and Welsch settled on $4.6 million, and Janas planned to sell the aircraft to the plaintiff for $4.75 million. The trial judge determined that a contract had been formed at this point. Defendant failed to deliver the aircraft in breach of the contract, and the trial judge ordered specific performance, i.e. the delivery of the jet for the agreed upon price.
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