Asked by Maxine Wiebenga on May 28, 2024
Verified
Which of the following terms in an agreement would not render it illusory?
A) A right to cancel a contract after the first 30 days.
B) A party to an agreement has a right to cancel or terminate at any time,for any reason,and without any notice.
C) A promisee promises to buy "all the tools I want."
D) A promise to perform under the contract "if I feel like it."
Illusory
Pertaining to something that is deceptive, misleading, or not based on reality; often used to describe agreements that lack a firm commitment.
Right to Cancel
A legal entitlement allowing a party to terminate an agreement or contract within a specific time frame.
Promisee Promises
Commitments or assurances made by the promisee (receiver of the promise) within a contractual agreement.
- Identify the differences between enforceable and non-enforceable promises through the presence of consideration.
Verified Answer
SA
shama ahmadJun 02, 2024
Final Answer :
A
Explanation :
A right to cancel or terminate at any time,for any reason,and without any notice would clearly render illusory any other promise by the party possessing such a right.However,limits on the circumstances under which cancellation may occur (such as a dealer's failure to live up to dealership obligations),or the time in which cancellation may occur (such as no cancellations for the first 90 days),or a requirement of advance notice of cancellation (such as a 30-day notice requirement)would all effectively remove a promise from the illusory category.
Learning Objectives
- Identify the differences between enforceable and non-enforceable promises through the presence of consideration.