JD Next Practice Exam

What kind of promise is typically unenforceable due to lack of consideration?

1. A contingent promise

2. A unilateral promise

3. An illusory promise

4. A conditional promise

The correct answer is: An illusory promise

An illusory promise is typically unenforceable due to a lack of consideration because it does not bind the promisor to any actual obligation. In contract law, for a promise to be enforceable, it must involve a commitment to do something or refrain from doing something that is of legal value. An illusory promise, however, consists of vague or indefinite terms that allow the promisor to decide whether to fulfill the promise at their discretion, which means there is no actual commitment or exchange of value. This lack of a true obligation implies that the promise may never be acted upon, failing to create a binding contract. In contrast, contingent, unilateral, or conditional promises involve specific conditions that create enforceable obligations, one way or another, demonstrating a clear exchange of consideration.