What is an illusory promise?

What is an illusory promise?

• A. A An enforceable contract
• B. B A promise to do something you are already obligated to do
• C. C A promise that depends on the promisor's discretion
• D. D An illusory promise

Answer: (D)

An illusory promise is a promise that binds the promisor to do something only at the promisor’s own whim. Because the promisor can choose not to perform without any consequence, there’s no real commitment and no consideration given to the promisee. Without consideration, a contract isn’t enforceable. For example, a statement like “I’ll paint your house if I feel like it” gives the promisor complete discretion and creates no binding obligation. In contract terms, that lack of guaranteed performance means the promise is illusory. The other ideas described—promising to do something you’re already obligated to do (which lacks new consideration) or a promise that hinges entirely on the promisor’s discretion (which is essentially the same illusory concept)—don’t create enforceable obligations on their own, which is why the illusory description fits best.

An illusory promise is a promise that binds the promisor to do something only at the promisor’s own whim. Because the promisor can choose not to perform without any consequence, there’s no real commitment and no consideration given to the promisee. Without consideration, a contract isn’t enforceable. For example, a statement like “I’ll paint your house if I feel like it” gives the promisor complete discretion and creates no binding obligation. In contract terms, that lack of guaranteed performance means the promise is illusory. The other ideas described—promising to do something you’re already obligated to do (which lacks new consideration) or a promise that hinges entirely on the promisor’s discretion (which is essentially the same illusory concept)—don’t create enforceable obligations on their own, which is why the illusory description fits best.