If the terms of a contract are described as illusory, what does that imply?

Study for the California Real Estate Broker Exam. Utilize flashcards and multiple choice questions, each with hints and explanations. Prepare efficiently and effectively for your licensing exam!

When the terms of a contract are described as illusory, it signifies that they lack certainty and are ambiguous in nature. An illusory promise typically does not bind a party to any obligation because it provides the impression that something will be done without guaranteeing that the action will actually take place. This means that one or both parties might not have a clear commitment to the contract's terms, making it difficult to ascertain what is expected from each party.

Contracts need to establish definite and clear terms in order to be considered valid and enforceable. If terms are uncertain or vague, as is the case with illusory promises, it can result in the contract being rendered void or unenforceable, as the obligations of the parties under the agreement are not adequately defined.

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