Is an agreement based on an illusory promise enforceable if the purpose of the agreement is legal?

What are the requirements for an illusory contract?

How do courts determine if a contract is illusory? Courts examine the language of the contract, the intentions of the parties, and whether there is mutual consideration. If one party's promise is found to be too vague or discretionary, the court may deem the contract illusory and unenforceable.

Is it possible to enforce a contract that lacks consideration?

Consideration is the main element of a contract . Without consideration by both parties, a contract cannot be enforceable. For instance, if a person used the money to purchase an apple, the apple is the merchant's consideration, and the money is the person's consideration.

What makes an agreement unenforceable?

Understanding what makes a contract unenforceable is crucial for anyone entering an agreement. Among other things, A contract can become unenforceable when it lacks mutual consent, involves illegal activities, or when a party lacks the capacity to understand the terms.

What defenses can be used against a claim of breach of contract?

What is the difference between illusory promise and unilateral contract?

The difference between a unilateral contract and an illusory promise is that when a bilateral contract has an illusory promise in it, one party is bound by his promise while the other party has made an empty promise which does not bind him.

What is an example of an illusory promise?

One example of an illusory promise is an agreement between a seller and a buyer that states that the seller "agrees to sell all of the ice cream he wants to" to the buyer. This promise is too vague and does not specify how much ice cream the seller will actually sell to the buyer.

What kinds of promises are enforceable without consideration?

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.

What damages are recoverable in a case of promissory estoppel?

In a promissory estoppel case, the court in its discretion can award either detrimental reliance damages or expectation damages (including specific performance), whichever it determines better avoids injustice.

What makes a promise legally binding?

Someone must make a promise. Someone else must genuinely and justifiably rely on the promise. The actions that are taken in reliance on the promise must be reasonably foreseeable to the person who makes the promise. Injustice will occur if the promise isn't enforced.

What is the mirror image rule in contracts?

In contract law , the “mirror image rule” is a doctrine stipulating that any acceptance of an offer is deemed to be an unconditional assent to the terms of the offer exactly as it is, without any changes or modifications .

Are implied contracts legally binding?

An implied contract is a non-verbal and unwritten – yet still legally binding – contract that exists based on the behavior of the parties involved or on a set of circumstances.

What are 2 defenses to the enforceability of a contract?

Incapacity to contract and illegality are two of the most well-known caveats to contract enforceability. These defenses help prevent injustice that could result from contract enforceability that would violate public policy.

What 3 elements must a breach of contract claim?

Once the plaintiff proves that a valid contract existed, they must show that they upheld their part. After that, the plaintiff must show that the defendant did not fulfill their obligations. And finally there must be evidence of actual damages that the plaintiff suffered as a result.

Is frustration of purpose an affirmative defense?

Frustration of purpose is a defense that can be affirmatively pleaded in a contract suit.

What type of contract is not legally enforceable?

A contract that is void is not legally enforceable and the parties thereto are not legally obligated to each other. Generally, contracts are void because the subject matter is not legal or one of the contracting parties does not have the competency to contract.

What is a grossly unfair contract said to be?

Unconscionable is an adjective that means without a conscience; unscrupulous; so unfair or unjust that it s hocks the conscience . The adjective is frequently used in the context of contract law for contracts that have grossly oppressive and unfair terms .

What is promissory estoppel?

Within contract law , promissory estoppel refers to the doctrine that a party may recover on the basis of a promise made when the party's reliance on that promise was reasonable , and the party attempting to recover detrimentally relied on the promise.

What is an illusory promise in contract law?

An illusory promise is a promise that is unenforceable due to indefiniteness or lack of mutuality , where only one side is bound to perform.

What constitutes tortious interference?

Tortious interference, also known as intentional interference with contractual relations, in the common law of torts, occurs when one person intentionally damages someone else's contractual or business relationships with a third party, causing economic harm.

What is a contract that Cannot be enforced?

For example, a court will never enforce a contract promoting something already against state or federal law (you can never enforce a contract for an illegal marijuana sale) or an agreement that offends the "public sensibilities" (contracts involving some sort of sexual immorality, for example).