John Leonard and Pepsico, inc Essay Example | Topics and Well Written Essays - 500 words

John Leonard and Pepsico, inc - Essay ExampleFourth, the contract would defy to have legal purpose. A contract would not be binding if the terms or enforcement were illegal at the time and place that it was implemented.The ruling in the Leonard v. Pepsico case relied on the objective theory to consider the gain void. This theory, often called the innocent bystander theory, purports to ask the question of what a reasonable person might expect from the agreement. merely put, if an innocent bystander had witnessed the agreement, would they expect it to be serious This sometimes enters a ruling where one party has misstated a condition that any reasonable bystander would understand as a mistake. The party would not be keep by this error. In this case, it was held that any reasonable person would assume that the offer was a joke.The court constitute that Pepsico was not bound by the agreement on two key points raised by the defense. The first-class honours degree was that the humor used by Pepsico in the advertisement clearly indicated that the offer was intended as a joke and thus failed the innocent bystander test. In Judge Woods ruling she writes, The commercial is the embodiment of what defendant befittingly characterizes as zany humor (United States District Court, 1999, p.6).