4 PepsiCo entered into a contract to sell its corporate jet

4. PepsiCo entered into a contract to sell its corporate jet to Klein for $4.6 million. Before the deal closed, the plane was sent to pick up PepsiCo\'s chairman of the board, who was stranded at Dulles airport. The chairman then decided that the company should not part with the plane. Klein sued PepsiCo for specific performance, arguing that he could not find a similar jet on the market for that price. Should a court force PepsiCo to sell its plane? to require the mitigation of damages? If a person is wronged because ly. Should the landlord 5. Is it reasonable th e other side breached a contract, should she have any obligations at all? For example, suppose that a tenant breaches a lease by leaving car an obligation to try to find another tenant before the end of the lease?

Solution

4.

Here Pepsico has no obligation, there were contract terms discussed, but the agreement was not finalized as the deal was not yet closed, which means there were still works pending to make it contractually obligatory and enforceable by law.

Though Klien could be at a loss, but there is no contract finalized on which he can ask for damage. So a court has not enforceable contract, hence it can not be forced to sell the plane.

5.

No, if there is a breach it can be contested by law and penalty can be imposed, but by good faith these terms are ignored or let go if a breaching party in one way or other minimizes the loss.

So this is not an obligation but a good faith shown if the party that breaches helps in minimizing the loss of the other party there by reducing the chances of getting into a litigation related to the breach of the contract.