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Esteban planned to open a new restaurant but first he needed…
Estebаn plаnned tо оpen а new restaurant but first he needed tо tear down an old building he owned and replace it with a new structure. Esteban obtained a bid of $10,000 to demolish the old building and another bid of $90,000 to construct the new structure. Esteban asked F1 Bank for a $100,000 loan. After reviewing the plans for the project, F1 Bank, in a signed writing, promised to lend Esteban $100,000, secured by a mortgage on the property and repayable over 10 years in equal monthly installments at 10% annual interest. Esteban promptly accepted the demolition bid and the old building was removed, but F1 Bank thereafter refused to make the loan. Despite diligent efforts, Esteban was unable to obtain a loan from any other source. Does Esteban have a cause of action against F1 Bank?
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