Question: Abby Novel signed a note with the following on it

Abby Novel signed a note with the following on it: “Glen Gallwitz 1-8-2002 loaned me $5,000 at 6% interest a total of $10,000.00.” The note did not contain a payment schedule or a time for repayment.
Abby used the $10,000 as start-up money for her business and says that she orally agreed to repay the loan out of the proceeds from her first 1,000-product sales. Abby did not make any payments. Glen passed away and his son, as executor of his estate, demanded that Abby repay the $10,000 plus 6% interest for a total of $14,958 (the amount due as of April 2010). The trial court granted judgment for the estate. Abby has appealed, alleging that she repaid the note through the care she gave for Glen. The estate maintains that the instrument was a negotiable promissory note and that it is entitled to collect the amount due in cash. Who is correct and why? [Gallwitz v. Novel, 2011 WL 303253 (Ohio App.)]

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  • CreatedJune 06, 2014
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