Jack was employed into service for the East India Trading Company and was given command of the Wicked Wench. However, after he set free a cargo of slaves, his employer, Cutler Beckett, had Jack branded as a pirate and the Wench set aflame and sunk. After failing to rescue the Wench, Sparrow struck a bargain with the ghostly captain of the Flying Dutchman, Davy Jones, to resurrect his beloved vessel. Jones returned the ship to Jack in near perfect condition except for the permanently charred hull. This prompted Jack to rename her the Black Pearl.
Jack Sparrow just got way cooler.
I love this exchange for the amazingly tight, concise exposition. In four lines, we have Beckett telling us he sank the Pearl, discovering Jack had legal work at one point, both characters’ views on the slave trade and an indication of how much Jack wanted his ship back and that he did something extreme to get it back. All in four lines. Awesome.