Thea Has a Large Farm and Significant Other Assets

question 82

Multiple Choice

Thea has a large farm and significant other assets. She agreed to loan her nephew Marcus $100,000 with payments of principle and interest to be made yearly. A few years later she and Marcus got into a dispute because Thea did not like his new girlfriend, Eileen. Soon thereafter Marcus got notice that Thea was suing him for not paying interest on the note. Marcus defended on the basis that two years after the initial loan agreement was entered into, he and Thea entered into an oral agreement that he would perform services on her farm in lieu of paying interest on the note. If the court follows the reasoning of the court in the Case Opener involving Monroe Bradstad and Jeanne Garland, which of the following is the most likely result of the dispute between Thea and Marcus involving whether he owes past interest amounts?

• A) Marcus will be required to pay the interest amounts because the agreement involving performing services in lieu of paying interest was not in writing.
• B) Marcus will be required to pay the interest amounts because the parol evidence rule bars evidence of any oral agreement outside the written agreement.
• C) Assuming the court credits Marcus' account of events, Marcus will not be required to pay the interest amounts because the oral agreement will be considered a separate enforceable agreement.
• D) Assuming the court credits Marcus' account of events, Marcus will not be required to pay the interest amounts because the oral agreement will be considered an extension and part of the original written agreement.
• E) Assuming the court credits Marcus' account of events, based on the parol evidence rule, Marcus will be required to pay only 1/2 of the interest amounts.

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Definitions:

Attachment

The emotional bond that forms between individuals, such as between parents and children, providing a sense of security and safety.

Reciprocal

A mutual or two-way exchange or interaction between parties.

Emotional Tie

A deep emotional connection or bond between individuals, often based on love, friendship, or shared experiences.

Basic Trust

A concept in Erik Erikson’s theory of development, referring to the first stage where an infant learns whether or not they can trust that their needs will be met by caretakers.