Allegheny College v. Nat'l Chautauqua County Bank

246 N.Y. 369, 159 N.E. 173 (1927)

 

RULE:

New York has adopted the doctrine of promissory estoppel as the equivalent of consideration in connection with its law of charitable subscriptions.

FACTS:

The decedent promised to give plaintiff college a charitable subscription 30 days after her death and with the condition that the scholarship established with the subscription be named in her honor. She donated $ 1,000 prior to her death. After her death, plaintiff filed suit against defendant executor for the unpaid balance of the subscription. Plaintiff's complaint was dismissed and judgment was entered in favor of defendant. The appellate division affirmed, but on further appeal, the court concluded that the duty assumed by plaintiff to perpetuate the name of decedent by naming the scholarship in her honor when it accepted part of the donation was sufficient consideration to make the charitable subscription promise legally enforceable.

 

ISSUE:

Was there sufficient consideration to make the charitable subscription promise legally enforceable?

ANSWER:

Yes.

CONCLUSION:

Judgment was reversed because the duty assumed by plaintiff to perpetuate the name of decedent by naming the scholarship in her honor when it accepted part of the decedent's donation was sufficient consideration to make the charitable subscription promise legally enforceable.

 

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