General Credit Corporation's promise to pay its employees a year-end bonus "if it seems like a good idea at the time" is
A) an enforceable contract.
B) an illusory contract.
C) an unconscionable contract.
D) a unilateral contract.

Question

Quizplus · Accepted Answer

The promise is an illusory contract because it does not create an obligation for General Credit Corporation to pay the bonus. The decision to pay the bonus is entirely subjective and depends on the company's discretion, which means that it is not a valid contract.

General Credit Corporation's Promise to Pay Its Employees a Year-End