A railroad company offers to purchase as much iron as its board of directors might order from an iron producer. After two months, the iron producer sues the railroad saying that they had not purchased any iron thus far from them. The railroad is not legally bound to give compensation to the iron producer. Under which clause can the railroad justify its stand?

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An illusory promise is a statement that appears to be a promise but does not actually commit the promisor to any obligation, making it unenforceable. The railroad's offer to purchase as much iron as the board might order is an illusory promise because it lacks a definite commitment to purchase any specific amount of iron.

A Railroad Company Offers to Purchase as Much Iron as Its