In CASE 23.1 Tufankjian v.Rockland Trust Co.(2003)Tufankjian signed a contract to acquire a Toyota dealership for $1.4 million.Rockland agreed to lend Tufankjian $700,000 at 7.5% interest,with the remaining $700,000 to come from the SBA at a separate interest rate which was quoted by Rockland at 6.5% (but with no written guaranty).Ultimately,the loan was not consummated and Tufankjian sued.How did the court rule?

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The court held that Rockland breached its duty of good faith and fair dealing by committing two separate actions that led Tufankjian to believe that the loan would be consummated, causing Tufankjian to rely on that belief and suffer damages. As a result, the court awarded damages to Tufankjian in the amount of $700,000 plus interest.