Asked by Leyla Jackson on Jul 08, 2024
Verified
An illusory promise can constitute consideration in some contracts.
Illusory Promise
A situation in which a party appears to commit to something but really has not committed to anything. It is not a promise and thus not consideration.
- Distinguish between illusory and actual promises and their significance in contract formation.
Verified Answer
TS
Tykeria StewardJul 11, 2024
Final Answer :
False
Explanation :
An illusory promise is one that does not actually bind the party to do anything and therefore cannot constitute valid consideration for a contract. Consideration requires a clear commitment or exchange of value between parties.
Learning Objectives
- Distinguish between illusory and actual promises and their significance in contract formation.