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Q.What is an illusory promise?
A.An "Illusory Promise" is a promise in exchange for nothing of value. Illusory Promises will NOT result in a contract. An example of an illusory promise is where a seller agrees to sell to a buyer all the "widgets" the buyer wants at a certain price. There is no contract because the buyer is not required to buy any widgets from the seller and can buy widgets from any other seller. However, if the buyer had agreed to buy all the widgets it needs for a certain price from only that seller then there would be a valid binding contract because the buyer has given up its right to buy from other sellers.
small business laws, contract, contract law, offer, acceptance, promise, oral promise, illusory promise, unenforceable promises.
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