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United Technologies International Pratt & Whitney Commercial Engine Business v. Malev Hungarian Airlines

GF. I. 31 349/1992/9 Translated in 13 J.L. & Com. 31-47 (1993)

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United Technologies International Pratt & Whitney Commercial Engine Business v. Malev Hungarian Airlines

The Supreme Court of the Republic of Hungary

GF. I. 31 349/1992/9 Translated in 13 J.L. & Com. 31-47 (1993)

Facts

Pratt & Whitney Commercial Engine Business (Pratt) (plaintiff) negotiated with Malev Hungarian Airlines (Malev) (defendant) for the sale of jet engines. On December 14, 1990, Pratt sent two purchase-support offers to Malev, one for Boeing planes and the other for Airbus planes. Each offer included the choice between two different engine options, for a total of four possible 4000-series engines. On December 21, 1990, Malev stated in a letter that it had selected the 4000-series engine, but did not sign a specific offer indicating which engine. Malev eventually informed Pratt that it would not purchase the engines. Pratt sued for breach of contract, arguing that Malev had accepted Pratt’s December 14 offer. Malev contended that the offer was not definite under Article 14 of the United Nations Convention on Contracts for the International Sale of Goods (CISG), because the price of the contract could not be determined until an exact engine was selected. The trial court ruled that the parties had enter a contract under CISG, because the price of the engines could be judicially determined. The court of appeals reversed. Pratt appealed to the Hungarian Supreme Court.

Rule of Law

Issue

Holding and Reasoning

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