TABLE OF CONTENTS

Page

I. INTRODUCTION...................................................................................................... 1

II. ORAL LOAN CONTRACTS................................................................................. 1

a. In General............................................................................................................ 1

b. Landes Construction Co., Inc. v. Royal Bank of Canada........................... 2

1. The Case........................................................................................................ 2

2. The Holding.................................................................................................. 4

3. Criticism by Commentators....................................................................... 5

4. A Recent California Case Dealing With Oral Loan Commitment...... 7

c. Cal. Civ. Code §1624(g)................................................................................... 8

1. The Amendment........................................................................................... 9

2. The Meaning of "to grant or extend credit"............................................ 9

3. Summary Table of the Effects of Cal. Civ. Code §1624(g).................. 11

4. Exceptions Apply........................................................................................ 12

d. Proofs for Oral Promises.................................................................................... 12

1. Preponderance of the Evidence................................................................. 12

2. Statute of Limitation................................................................................... 12

3. Modification of Oral Contracts................................................................. 13

4. Parol Evidence............................................................................................. 13

5. Claims in Complaint................................................................................... 14

6. Other Cases Relating to Proofs and Contracts Theories....................... 14

III. OTHER THEORIES............................................................................................... 14

a. Implied Covenant of Good Faith and Fair Dealing..................................... 15

1. The Uniform Commercial Code Provisions............................................ 15

2. The Old Wallis Factors............................................................................... 15

3. Foley v. Interractive Data........................................................................... 16

i. The Case................................................................................................... 16

ii. Applying the Foley's Special Relationship Test............................. 18

4. Bank Cases.................................................................................................... 19

b. Promissory Estoppel.......................................................................................... 20

c. Waiver.................................................................................................................. 22

d. Fraud.................................................................................................................... 22

e. Breach of Fiduciary Duty/Constructive Fraud............................................. 22

f. Misrepresentation............................................................................................... 24

IV. STATE STATUTES AND ORAL LOAN COMMITMENTS.......................... 25

V. ORAL LOAN COMMITMENTS WITH A FAILED BANK............................. 25

VI. CONCLUSION....................................................................................................... 28