The First Bank of Colorado loaned the XYZ Company $1,500,000 for the manufacture of computer software. As a condition of the loan, Bixby, a majority shareholder in XYZ, agreed in writing to personally guarantee the loan. Thereafter, XYZ defaulted on the loan and entered into a repayment agreement with First Bank. This agreement provided that First Bank would "use maximum efforts in selling XYZ's assets at the highest possible price." First Bank proceeded to sell XYZ's assets, discharging the indebtedness of the widget company. Later, it was ascertained that First Bank did not realize the "highest possible price" in administering the sale of XYZ's assets. Consequently, Bixby was forced into bankruptcy and lost his entire investment in the XYZ Company. Bixby brings an appropriate action against First Bank to recover his investment in XYZ's stock. He will most likely

Question 16Select one:

A.not prevail, because Bixby was an incidental beneficiary of the First Bank sale of XYZ's assets.

B.not prevail, because First Bank's sale of XYZ's assets discharged whatever contractual relationship existed between Bixby and the bank.

C.prevail, because First Bank did not realize the highest possible price from the sale of XYZ's assets.

D.prevail, because First bank breached its fiduciary duty to Bixby under the terms of the First Bank- XYZ contract.