Leonard v. Pepsi Facts: Pepsi had a commercial in which they advertised, with Pepsi points (or the purchase of the points for $.10 a piece), that one could earn a jet. (P) gathered enough points and money to earn the jet, although after contacting Pepsi to redeem his prize (along side his lawyers) Pepsi denied his prize claiming that it was merely a joke and that no responsible person would have concluded otherwise. Nonetheless, (P) now pursues the case in court to receive his winnings. Rules: “A basic rule of contracts holds that whether an offer has been made depends on the objective reasonableness of the alleged offeree‟s belief that the advertisement or solicitation was intended as an offer.” Issues: Can a contract be formed if an unreasonable claim is made that is believed by a person? Can a advertisement made in jest that is taken literally by a person be a valid and binding contract? Can an advertisement be considered a contract? Reasoning: Summary judgment is proper when the „words and action that allegedly formed a contract are so clear themselves that reasonable people could not differ over their meaning‟”. Holding: Summary judgment Gault v. Sideman Facts: (P) relied upon advice given to him by the (D) and promise that they would cure him with the advised treatment. Rules: Issues: Can a doctor‟s advice towards a cure for a said disease be held as a binding contract? If the advise of a doctor is interpreted as a contract by another party, can the doctor be held liable? Reasoning: Holding: The appellate court affirmed the lower courts decision.
Doctor guarantees a cure, which is not provided. He is not liable for this oral agreement. A physicianÌs therapeutic reassurance that his patient will be alright must not be converted into a binding promise by the disappointed or quarrelsome. The doctor/patient relationship is a peculiar one, revolving around the imprecise art of medicine. Expressions and predictions stated by doctors based on their prior experience should not pose a contractual duty, claims should not be binding. o An agreement between a doctor and his patient are not governed by the ordinary rules of mercantile contracts b/c of unique relationship between doctor and patient; would be against social policy to treat it otherwise.
o o
Contract is not effective in making legally binding a doctors promises within the normal doctor/patient relationship. RULE: a patient cannot maintain a breach of K against his doctor for fialing to cure his conditions