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?

Question
  1. 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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