Business Law: Principles for Today's Commercial Environment 3rd Edition by Marianne Moody Jennings, David Twomey, Marianne Jennings

Exercise 5

Bogart owed several debts to Security Bank Trust Co. and applied to the bank for a loan to pay the debts. The bank's employee stated that he would take the application for the loan to the loan committee and "within two or three days, we ought to have something here, ready for you to go with." The loan was not made. The bank sued Bogart for his debts. He filed a counterclaim on the theory that the bank had broken its contract to make a loan to him and that promissory estoppel prevented the bank from going back on what the employee had said. Was this counterclaim valid