Wednesday, December 18, 2013

Salsbury v. Northwestern Bell Telephone Co. case brief

Salsbury v. Northwestern Bell Telephone Co. case brief summary
221 N.W.2d 609 (1974)


CASE SYNOPSIS
Defendant appealed judgment from Floyd District Court (Iowa), which held defendant's letter was binding as a charitable subscription, in an action by plaintiff seeking a declaratory judgment that defendant was liable for the payment of funds it promised to pay to plaintiff's college prior to its defunct.

CASE FACTS
Plaintiff participated in efforts to establish a city college and utilized a professional fund raiser to solicit subscriptions as a part of the funding drive. An employee of defendant corporation negotiated with the fund raiser for defendant's subscription. Because the employee was not authorized to sign a pledge form, upon approval, he submitted a letter to the fund raiser evidencing defendant's subscription. Plaintiff's college subsequently failed, and defendant failed to honor its subscription. Plaintiff sued defendant and sought declaratory relief that defendant was bound to the plaintiff by virtue of the defendant's letter. The trial court held the letter was a promissory undertaking, which constituted a basis for contractual liability.

DISCUSSION

  • On appeal, the court affirmed, reasoning where a subscription is unequivocal the pledgor should be made to keep his word and in this case the subscription was unequivocal as evidenced by defendant's letter.

CONCLUSION
Declaratory judgment of lower court which held defendant's letter was binding as a charitable subscription affirmed, because the appellate court determined where a subscription was unequivocal the pledgor should be made to keep his word and in this case the subscription was unequivocal as evidenced by defendant's letter.

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