11.
(p. 422)
Sally has a large farm and significant other assets. She agreed to loan her nephew Todd
$100,000 with payments of principle and interest to be made yearly. A few years later she and
Todd got into a dispute because Sally did not like his new girlfriend, Polly. Soon thereafter Todd
got notice that Sally was suing him for not paying interest on the note. Todd defended on the
basis that two years after the initial loan agreement was entered into, he and Sally 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 Sally and Todd involving whether he owes past interest amounts?