December 7, 2019

Klein v. Pepsico | Case Brief Law Students - 845 F.2d 76 (1988) - US Court of Appeals, Fourth Circuit

Facts: Pepsico entered into a contract with Universal Jet Sales (UJS) to sell them a plane which was to be resold to Klein. Klein was allowed to inspect the aircraft and to put down a deposit on the plane. The parties also negotiated on the price. At the last moment Pepsico decided to keep the plane and took it off the market.

Procedural History: District Court ordered fulfillment of the contract.


1) Did a contract exist?

2) Did Klein lose money on the expectation of a possible resale of the plane?


1) Yes

2) No


1) Pepsico made a number of communications regarding the sale of the plane and also agreed to fix the plane in order to allow it to be sold. 

2) The aircraft was not unique and Klein was offered similar planes by UJS to make up for the one Pepsico refused to sell.

Disposition: Affirmed in part, reversed, and remanded in part.