Cloud Storage Inc. promises to pay its employees a year-end bonus "if profits continue to be high and management agrees at the time." This is
A)an enforceable contract.
B)an illusory promise.
C)accord and satisfaction.
D)past consideration.

Question

Quizplus · Accepted Answer

This is considered an illusory promise because the promise of a bonus is not definite and depends on two conditions: the continuation of high profits and management's agreement at the time. This makes the promise too uncertain to constitute an enforceable contract.