Cengage Advantage Books: Law for Business 18th Edition by John Ashcroft ,Janet Ashcroft

Exercise 17

When the concluding question in a case problem can be answered simply yes or no, stare the legal principle or rule of law that supports your answer.
David and Kimberly Birt met with Richard Gibbs, a loan officer with Wells Fargo Home Mortgage Inc. After reviewing the Biris' financial documents, Gibbs said they were eligible for a home construction loan. He told them to get a builder and design plans The Birts had plans drawn and gave them to their proposed builder. Gibbs knew from a second credit report that the Birts would not be able to borrow as much as expected, but told them to sign a contract with the builder, which they did. They got a letter welcoming them to Wells Fargo Mortgage Resources and containing lending disclosures, but they knew the figures in the disclosures were just an example. Several weeks later, when they still had not received a loan commitment letter, the Birts contacted Gibbs's supervisor. He told them the loan had been denied. They sued Wells Fargo. Was there an implied in fact contract with Wells Fargo?