How have courts interpreted bargained-for restrictions?

California, United States of America


The following excerpt is from Caldwell v. Regents of the Univ. of Cal., B243567 (Cal. App. 2013):

Lastly, we are unpersuaded by appellant's public policy argument that the conclusion this was a bargained-for exchange instead of a charitable gift will frustrate or discourage future giving. Appellant failed to provide any evidence to support its argument. Beyond offering evidence to show that most of its gifts are restricted, it offered no evidence to show how enforcing the restriction contained in the 1982 Amendment and 1999 Amendment would deter other forms of charitable giving. Further, the court in County of Solano v. Handlery (2007) 155 Cal.App.4th 566 cited two public policy considerations in support of the enforcement of bargained-for restrictions, noting "that if courts were to permit public entities to accept from donors gifts of property subject to restrictions on the property's use, and then later jettison those restrictions on

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