Business Law: Principles for Today's Commercial Environment 3rd Edition by Marianne Moody Jennings, David Twomey, Marianne Jennings

Exercise 5

Joyce Clifford gave a check for $5,000 to her nephew Carl to help with living expenses for his last year of college. The face of the check stated, "As a loan." Years later, Carl wrote to his aunt asking what he should do about the loan. She responded on her Christmas card simply, "On money-keep it-no return." After Joyce's death, her administrator sued Carl after discovering the "As a loan" canceled check. Decide.