This post addresses business law in obtaining a loan.
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A Bank advertises home loans at low interest rates for its account holders for three months. Toward the end of the second month, the bank withdraws the offer. John opens an account with the bank because of the offer. He is however, a little late applying for the loan and the offer is withdrawn before his application is processed.
Can he sue the bank why or why not?
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Solution Summary
This solution discusses the following scenario:
A Bank advertises home loans at low interest rates for its account holders for three months. Toward the end of the second month, the bank withdraws the offer. John opens an account with the bank because of the offer. He is however, a little late applying for the loan and the offer is withdrawn before his application is processed.
Can he sue the bank why or why not?
Solution Preview
No, John can't sue the bank because a valid contract hasn't been formed between the bank and John. Although John satisfied the requirement of opening the account and then applied for the loan, there was no consideration - he didn't ...
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