Homebuyers Mortgage Corporation's promise to pay its employees a year-end bonus "if it seems like a good idea at the time" is

Question

Quizplus · Accepted Answer

The promise made by Homebuyers Mortgage Corporation is an illusory promise because it does not create any legal obligation on the part of the employer to pay a bonus to its employees. The language used is too vague and subjective as it leaves the decision to pay the bonus entirely up to the discretion of the employer. As such, the promise lacks the essential elements required for a valid contract.

Homebuyers Mortgage Corporation's Promise to Pay Its Employees a Year-End