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)
Pratt & Whitney Commercial Engine Business (Pratt) (plaintiff), negotiating with Malev Hungarian Airlines (Malev) (defendant) over jet engines, sent two purchase-support offers on December 14, 1990 -- one for Boeing planes and one for Airbus planes -- each letting Malev choose between two engine options, for a total of four possible 4000-series engines. On December 21, 1990, Malev stated by letter that it had selected the 4000-series engine generally, but never signed a specific offer identifying which of the four engine options it chose, and later informed Pratt it would not purchase any engines. Pratt sued for breach, arguing Malev had accepted its December 14 offer; the trial court found a contract existed under the CISG because the price could be judicially determined, but the court of appeals reversed, and Pratt appealed to the Hungarian Supreme Court.
Whether an offer for the sale of goods that does not set a price is sufficiently definite to constitute an offer that can be accepted under Article 14 of the United Nations Convention on Contracts for the International Sale of Goods.