If one party's promise contains no real obligation, then the promise is merely an illusory promise and the contract will fail for lack of mutuality.

Question

Quizplus · Accepted Answer

An illusory promise is a promise that appears to create a legally binding obligation, but actually does not. If one party's promise contains no real obligation, then there is a lack of mutuality, which means that one party is not bound to perform and the contract will fail. Therefore, the statement is true.

If One Party's Promise Contains No Real Obligation, Then the Promise