Themis Contracts Practice Exam

An illusory promise is one that looks like a commitment but gives the promisor complete discretion to perform or not perform. Because the promisor can choose to do nothing, there is no real obligation and no consideration exchanged in return for that promise. In contract formation, consideration requires a bargained-for exchange, so a promise that the promisor may simply abandon at will cannot create a binding contract. The description that fits this concept is a promise that gives the promisor discretion to perform or not and lacks consideration. It captures why the promise isn’t enforceable as a contract: there’s no obligation on the promisor and no true bargain for the other party. The other options describe promises that would bind the promisor or involve valid consideration, which would create enforceable duties instead of an illusory one.