Salsbury v. Northwestern Bell Telephone Co.

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Salsbury v. Northwestern Bell Telephone Co.
CourtIowa Supreme Court
Full case nameJohn Salsbury, Appellee, v. Northwestern Bell Telephone Company, Appellant.
DecidedSeptember 18, 1974
DefendantNorthwestern Bell Telephone Co.
Plaintiff(s)John Salsbury
Citation(s)221 N.W.2d 609, 1974 Iowa Sup. LEXIS 1120
Court membership
Judge(s) sittingDavid Harris, Don LeGrand, W. W. Reynoldson
Case opinions
Decision byDavid Harris

Salsbury v. Northwestern Bell Telephone Co., 221 N.W.2d 609 (IA 1974), was a case decided by the Iowa Supreme Court concerning contract law.

Background[edit]

When John Salsbury was helping to establish Charles City College, Northwestern Bell agreed to make a $5,000 contribution for the next three years but only made one payment. The school sued for breach of contract but the telephone company maintained the contract was unenforceable because they received no consideration for the donations.

Decision[edit]

The court adopted the position of the Restatement of Contracts, Second that charitable subscriptions can be enforced even without consideration or detrimental reliance.[1]

References[edit]

  1. ^ Ayres, I. & Speidel R.E. Studies in Contract Law, Seventh Edition. Foundation Press, New York, NY: 2008, p. 141

External links[edit]