Is an illusory promise is valid consideration?

Because an illusory promise forms a contract in which only one party is required to perform, an illusory promise is not valid consideration and neither party to a contract containing an illusory promise is bound by the contract.

What is an example of valid consideration?

A promise of an act by one party in exchange for the promise of an act by another is a valid consideration. Example: Joanne promised to paint Elaine’s office room if Elaine helps with her landscape project.

Which of the following is an example of an illusory contract?

WHich of the following is an example of an illusory promise? A promise that the promisor will choose one out of several means of performance, most of which involve a legal detriment to the promisor.

What is an illusory promise and why is it not valid consideration?

����� Illusory Promises: If the terms of a contract call for performance in such uncertain terms that the promisor has not definitely promised to dQ (or refrain from doing) anything, the promise is unenforceable for lack of sufficient consideration.

Can a promise be consideration?

Consideration is an essential element for the formation of a contract. It may consist of a promise to perform a desired act or a promise to refrain from doing an act that one is legally entitled to do.

What is a 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.

What is not valid consideration?

Generally, past consideration is not a valid consideration and has no legal value. Past consideration is consideration that has already flowed from the promisee to the promisor. That is, the promisee’s act or forbearance predates the promisor’s promise.

What is an illusory promise quizlet?

What is an illusory promise? A promise which does not impose any real obligation on the part of the Promisor.

Why is a illusory promise unenforceable?

An illusory promise is one that is unenforceable. This is due to a lack of mutuality or indefiniteness where only one party is bound to perform. An illusory promise is based on deception or parameters that are indefinite, making it unclear what must be done or if performance is optional.

Can consideration be a promise for another promise?

However, a valid consideration, given in the past to support a promise, can be the basis for another, later contract under certain circumstances. These occur when a person’s duty to act for one reason or another has become no longer binding.

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.

What damages are recoverable in a case of promissory estoppel?

Damages recoverable in a case of promissory estoppel are not the profits that the promisee expected, but only the amount necessary to restore the promisee to the position he or she would have been in had the promisee not relied on the promise.