Cengage Advantage Books: Law for Business 18th Edition by John Ashcroft ,Janet Ashcroft

Exercise 8

During her life, Bernice David purchased several subordinated certificates of indebtedness through West Baton Rouge Credit. Some were purchased in her name alone, some jointly with her daughter, Veronica, or son, Donald. In every case, Bernice supplied all the purchase funds. After Bernice's death, Donald consolidated seven certificates which had been titled in both his and Bernice's names, with a total principal sum of $97,749.20, into one new certificate in his name only. Veronica claimed that the certificates were property of Bernice's estate, and that Donald did not have authority to convert them to his own name because ownership had not legally transferred to him. Were the certificates registered in Bernice and Donald's name a gift to Donald?