Thomas Stafford owned four promissory notes. Payments on the notes were deposited into a bank account in

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Thomas Stafford owned four promissory notes. Payments on the notes were deposited into a bank account in the names of Stafford and his daughter, June Zink, jointly with a note on the account indicating that if either Stafford or Zink should die, ownership would pass automatically to the survivor. Stafford kept control of the notes and would not allow Zink to spend any of the proceeds. He also kept the interest on the account. On one note, Stafford indorsed “Pay to the order of Thomas J. Stafford or June S. Zink, or the survivor.” The payee on each of the other notes was “Thomas J. Stafford and June S. Zink, or the survivor.” When Stafford died, Zink took possession of the notes, claiming that she was now the owner of the notes. Stafford’s son, also Thomas, filed a suit in a Virginia state court against Zink, claiming that the notes were partly his. Thomas argued that their father had not made a valid gift inter vivos of the notes to Zink. In whose favor will the court rule? Why?

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Business Law Text and Cases

ISBN: 978-0324655223

11th Edition

Authors: Kenneth W. Clarkson, Roger LeRoy Miller, Gaylord A. Jentz, F

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