Bogart owed several debts to Security Bank amp Trust Co and

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?

Solution

No the counerclaim is not valid as no agent or employee of the bank is able to alter or waive any terms and conditions of the debt and no representation or claim or any other matter by Bogart shall in any way affect his duty to pay the debt and perform its obligations as required. The bank shall not be liable to Bogart for any incidental, consequential or indirect damages for any act, neglect, omission, breach or default by any third party.

So in this case Bogart is liable to pay his debts to the bank and his counterclaim is not valid.