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Is an illusory promise supported by consideration?

Is an illusory promise a consideration? An illusory promise is not a consideration. However, illusory promises affect the consideration an element of a contract formation. For a contract to be valid and legally binding, both parties must obtain a consideration.

What is an illusory promise in law?

A promise that is unenforceable due to indefiniteness or lack of mutuality, where only one side is bound to perform. An example of this would be an agreement between a seller and buyer which states that the seller “agrees to sell all of the ice cream he wants to” to the buyer. business law.

Is an illusory contract valid?

An illusory contract is not enforceable in law. The obligations are indefinite for one party and not enforceable. There is a lack of mutuality.

Is a promise valid consideration?

Consideration should contain payment of money, some act, abstinence or promise. For a consideration to be valid there must be a promise from both sides. This means that there must be a promise by one party against the promise of the other party.

Which of the following is a valid consideration?

Which of the following are the legal requirements (i.e., essential elements ) of a valid consideration? (i) Consideration must be real and not illusory. (ii) Consideration must be of some value in the eyes of law. (iii) Consideration must be adequate. (iv) Consideration must be furnished by the promisee himself.

Why does an illusory contract lack consideration?

Question: Why does an illusory contract lack consideration? because the consideration promised is unlawful and therefore void B. because the person promises to perform an act or do something he is already under an obligation to do C.

Which of the following meets the requirements of consideration?

Which of the following meets the requirements of consideration? A consideration involves the exchange of a legal value; a promise to refrain from crimes, to engage in a preexisting duty, or one without a binding obligation is not deemed a consideration.

How can illusory promises become enforceable and binding?

Courts may enforce an illusory promise as being a valid contract by invoking the doctrine of promissory estoppel. The doctrine comes into play when a promise is made to a promisee who relies on the promise to his or her detriment.

Are illusory contracts void?

When one party involved with a contract has the unilateral right to modify the terms and conditions of the contract without the other party’s consent or without giving notice, it is an illusory promise. In this situation, the contract is declared null and void.

What is valid consideration law?

Consideration is a key ingredient for an enforceable contract. It is concerned with what one party gives or promises in exchange for a promise or performance from another party. It requires ‘something of value’ to be given for the promise.

What promises are legally enforceable?

Factors other than a bargain that make a promise enforceable include reliance on the promise by the promisee, certain promises given in exchange for past or moral consideration, waiver of non-material conditions of a bargain, and promises made in special legally recognized forms, such as promises under seal.

Which is not valid consideration?

Invalid consideration is when one of the basic elements of a contract or an agreement, the consideration, is considered unacceptable in the eyes of the law. Usually, the consideration exchanged under contract between two parties is up to the parties involved.

Is a promise legally enforceable?

Promissory estoppel is the legal principle that a promise is enforceable by law, even if made without formal consideration when a promisor has made a promise to a promisee who then relies on that promise to his subsequent detriment.

Is promise enforceable if one party promises?

A bargain in which one party promises to do what he or she is already legally obligated to do looks like an ordinary bargain but it is not enforceable because the obligated party is not required to do anything new under the contract. We will discuss this in more detail when we discuss the legal duty rule in future lessons.

Is a hypothetical promise enforceable?

Generally, hypothetical promises are not enforceable contracts; they lack adequate consideration (meaning, they lack the requisite “this for that”). In other words, optional promises don’t count because there is nothing promised in return.

Is contract legally enforceable promise or set of promises?

A contract is a promise or set of promises for the breach of which the law gives a remedy, or the performance of which the law in some way recognizes as a duty. Any words or conduct by one or both parties that communicate a legally enforceable promise will constitute a contract.