Reference no: EM133433222

Raymond P. Wirth signed a pledge agreement that stated that in consideration of his interest in education, and "intending to be legally bound," he irrevocably pledged and promised to pay Drexel University the sum of $150,000. The pledge agreement provided that an endowed scholarship would be created in Wirth's name. The Pledge Agreement further stated: "I acknowledge that Drexel's promise to use the amount pledged by me shall constitute full and adequate consideration for this pledge."

Wirth died 2 months after signing the pledge but before any money had been paid to Drexel. When the Wirth's estate refused to honor the pledge, Drexel sued to collect the $150,000. The administrators of the estate alleged that the pledge was unenforceable because of lack of consideration. The court denied Drexel's motion for summary judgment and dismissed Drexel's claim against the estate. Drexel appealed.

Question 1. Given the facts, do you see any consideration offered by Drexel in exchange for the money pledged by Wirth? What do you think should qualify as consideration, if anything?

Question 2. With that in mind, do you think the money pledge should be enforced by the court? Explain your reasoning.

Question 3. Did the administrators of the estate of Wirth act ethically by refusing to honor Mr. Wirth's pledge? Why or why not?