Contracts
Illusory Promise
Definition
An illusory promise is a statement that appears to commit a party to perform but, on closer examination, does not actually obligate them to do anything. Because an illusory promise imposes no real constraint on the promisor, it fails as consideration and cannot support a binding contract. Courts distinguish illusory promises from those with implied obligations of good faith or reasonable efforts.
Example
A buyer agrees to purchase "as many widgets as I want." This is illusory because the buyer can choose to purchase zero. Compare with requirements and output contracts, which impose good-faith limits.