Making a long-term loan


Question:

Lone star Life Insurance Co. agreed to make a long-term loan to Five Forty Three Land, Inc., whenever that corporation requested one. Five Forty Three wanted this load to pay off its short-term debts. The loan was never made, as it was never requested by Five Forty Three, which owed the Exchange Bank and Trust Co. on a short-term debt. Exchange Bank then sued Lone Star for Breach of its promise on the theory that the exchange Bank was a third-party beneficiary of the contract to make the loan. Was the Exchange Bank Correct?

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Business Law and Ethics: Making a long-term loan
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