SALSBURY V. NORTHWESTERN BELL TELEPHONE CO.
221 N.W. 2d 609 (Iowa 1974)
NATURE OF THE CASE: This was an action brought to enforce a pledge made to charity.
Northwestern (D) appealed a judgment, which held D's letter was binding as a charitable
subscription, in Salsbury's (P) suit seeking a declaratory judgment that D was liable for
the payment of funds it promised to pay to P's college prior to its defunct.
FACTS: Northwestern (D) promised by a letter to give Charles City College (P) $15,000.
The letter was treated just like other pledge cards. D's letter was assigned to a supplier
of the college, but was never actually transferred. The supplier received an unsigned pledge
card to reflect D's pledge. The chairman of the board of trustees for the college Salsbury
(P) executed a personal guarantee to gain the credit from the supplier who used the pledges
as security interests. The pledges were assigned to P without P's knowledge of D's letter.
The college was closed and P sued D to recover the pledged amount. The court held that the
pledge to P was enforceable as a matter of public policy. D appealed; there was no
consideration.
ISSUE:
RULE OF LAW:
HOLDING AND DECISION:
LEGAL ANALYSIS:
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