Sam owes Nick $200,000. Sam goes to Chase bank to take out a loan of $200,000 so he can pay off his debt to Nick. Chase agrees to make the loan but breaches its contract with Sam. Sam then defaults on his loan to Nick. Nick sues Chase bank because they breached their contract with Sam. What is the probable outcome of Nick’s suit against Chase?

Sam owes Nick $200,000. Sam goes to Chase bank to take out a loan of $200,000 so he can pay off his debt to Nick. Chase agrees to make the loan but breaches its contract with Sam. Sam then defaults on his loan to Nick. Nick sues Chase bank because they breached their contract with Sam. What is the probable outcome of Nick’s suit against Chase?

Similar questions

Andrews and Brown hired a bookkeeper, Jenice, and gave her general authority to issue company checks drawn on SunTrust Bank so that Jenice can pay employees’ wages and other company bills. Jenice decides to cheat her employers out of $10,000 by issuing a check payable to the Bayside Distributors, one of the suppliers of seafood and fresh local produce. Jenice does not intend for Bayside to receive any of the money, nor is Bayside entitled to the payment. Jenice endorses the check in Bayside’s name and deposits the check in an account that she opened at Wells Fargo Bank in the name “Bayfood Dist. Co.” Wells Fargo accepts the check and collects payment from the drawee bank, SunTrust. SunTrust charges [Name of Restaurant] account $10,000. Denice transfers $10,000 out of the Bayside account and closes it. [Name of Restaurant] discovers the fraud and demands that the bank return the money. Evaluate which party or parties bear the loss.
‘The capacity to incur liability on negotiable instruments is co- extensive with the capacity to contract.’ Explain the statement and discuss the different cases of incapacity to incur liability as a party to negotiable instruments.
Steven, an accountant, returning from his office, calls into a pub for a relaxing drink. He bumps into Paul, an old school friend, whom he has not seen for many years. During the course of the conversation over a number of pints, it emerges that Paul has recently inherited a substantial sum of money and is interested in investing in local businesses. Steven mentions that one of his clients, Precarious Ltd, is seeking financial backing and would make an attractive investment. By chance, he has a copy of the company’s accounts in his briefcase which he gives to Paul. Relying on these accounts, Paul invests £10,000 in Precarious Ltd, but loses everything when Precarious goes into liquidation six months later. In fact, the accounts had been prepared negligently and did not reflect the parlous state of the company’s affairs. Advise Paul.
If a member of a limited liability company dissociates from the firm in violation of the operating agreement, the member can be held liable for any loss to the business resulting from the withdrawal. True False
Bill was appointed by Melinda to buy a painting at not more than $1 million. Bill eventually bought the painting for $1.2 million. Melinda wished to ratify Bill's act. Which of the following statements is CORRECT? Melinda could ratify if she did so soon after Bill's unauthorised act. Melinda could not ratify because Bill disobeyed her instructions. Bill had actual authority since he was appointed by Melinda to buy the painting. Melinda could still sue Bill for the price difference after ratifying his unauthorised act.
Why does the agent have personal liability when the principal is undisclosed?
John goes to a bar. Harry starts to talk to him about a car he has for sale. John tells him he wishes he could buy the car but does not have that much cash. Harry tells John he can make payments over the next year. Harry writes on a napkin John shall pay me $100.00 per month for 12 months starting December 1, 2018. They both sign and date the napkin. Discuss whether this is a negotiable instrument. Defend your position. Ensure you discuss each element of negotiability.
Explain Subcontracting?
Dorian breeds Scottish Fold kittens and informs Stevie that she is a cat breeder. Stevie says she is interested in purchasing one of her kittens. Dorian calls Stevie a month later and says Stevie’s kitten is ready for pickup and Stevie owes her $1,000. Stevie refuses, stating they did not have a valid contract. Dorian states they did have a valid contract. Who is correct?
under the NCC, what are the different acts or omissions of the obligor or debtor which will result in the breach of the obligation for which he can be held liable for damages?
Bill offers to sell Mary his computer for $500. Mary counters with an offer of $400 Bill rejects this offer. Mary tells Bill: "OK, I'll buy the computer for $500." Bill tells Mary: "I've decided not to sell the computer after all." Bill is in breach of contract because Mary made a valid offer. True False
The Federal Crop Insurance Corporation (FCIC) was created as a wholly government-owned corporation to insure wheat producers against unavoidable crop failure. As required by law, the FCIC published in the Federal Register conditions for crop insurance. Specifically, the FCIC published that spring wheat reseeded on winter wheat acreage was ineligible for coverage. When farmer Merrill applied for insurance on his wheat crop, he informed the local FCIC agent that 400 of his 460 acres of spring wheat were reseeded on the winter wheat acreage. The agent advised Merrill that his entire crop was insurable. When drought destroyed Merrill’s wheat, Merrill tried to collect the insurance, but the FCIC refused to pay, asserting that Merrill is bound by the notice provided by publication of the regulation in the Federal Register. Is the FCIC correct? Explain.