Ben Hunt operated a farm under the name of S.B.H. Farms. Hunt went to Mollary Bank and Trust and requested a loan to build hog houses, buy livestock, and expand farming operations. The bank agreed to loan S.B.H. Farms $175,000, for which short-term promissory notes were signed by Hunt. At the same time, oral discussions were held with the loan officer regarding long-term financing for the farm operations. No dollar amount, interest rate, or repayment terms were discussed. When Hunt defaulted on the short-term notes, the bank foreclosed on the farm. Hunt counterclaimed for $750,000 damages, alleging that the bank had breached a contract for long-term financing. Was there a valid offer for long-term financing offered by the bank?
- Ben Hunt operated a farm under the name of S.B.H. Farms. Hunt went to Mollary Bank and Trust and requested a loan to build hog houses, buy livestock, and expand farming operations. The bank agreed to loan S.B.H. Farms $175,000, for which short-term promissory notes were signed by Hunt. At the same time, oral discussions were held with the loan officer regarding long-term financing for the farm operations. No dollar amount, interest rate, or repayment terms were discussed. When Hunt defaulted on the short-term notes, the bank foreclosed on the farm. Hunt counterclaimed for $750,000 damages, alleging that the bank had breached a contract for long-term financing. Was there a valid offer for long-term financing offered by the bank?
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