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Brief Fact Summary.
The Combined Jewish Philanthropies of Greater Boston (CJP) sued Morton Shoe Company, Inc. (Morton) for failing to pay their charitable pledges through 1980, despite Morton filing bankruptcy in 1979.
Synopsis of Rule of Law.
Charitable subscriptions are enforceable because charities rely on the subscriptions and use proceeds to further their charitable purposes.
It is held that by accepting such a subscription the promisee agrees on his part with the subscribers, that he will hold and appropriate the funds subscribed in conformity with the terms and objects of the subscription, and thus mutual and independent promises are made, which constitute a legal and sufficient consideration for each other.
View Full Point of Law
The Combined Jewish Philanthropies of Greater Boston (CJP) solicited pledges within the community and Morton Shoe Company, Inc. (Morton) pledged $10,000 for 1976 through 1980. Morton paid their pledge faithfully through 1978, but did not pay for 1979 and 1980 because they filed bankruptcy. CJP filed a claim for unpaid pledges and Morton objected.
Issue.
Whether charitable subscriptions are enforceable?
Held.
Yes. CJP’s claim is allowed because charitable subscriptions are enforced and supported by consideration.
Discussion.
Under promissory estoppel, charitable subscriptions are enforced and supported by consideration.