Opinion ID: 1634087
Heading Depth: 1
Heading Rank: 6

Heading: Oral Loan Agreement

Text: The Hammons next argue that Trustmark made an oral loan by representing to them that the indebtedness could be paid over a period of several years, if the valuation of the well was as much or more than the indebtedness owed to the bank and that such note would be affordable to them. The Chancellor's opinion found no breach of contract to make an installment loan, mainly because no contract existed where the parties intended to continue negotiating but had not yet reached a mutual agreement. J. Russell Flowers, Inc. v. Itel Corp., 495 F. Supp. 88 (N.D.Miss. 1980). We agree. In the case at bar, the Hammons did not establish the terms of the alleged loan, i.e., the terms of the repayment, the interest rate, and other essentials needed to form a contract. In other words, the appellants have failed to prove that there was a meeting of the minds. We hold that there was no contract and hence no error by the Chancellor.