Contracts I

Alternative Performance


Restatement Second of Contracts § 77

Illusory and Alternative Promises

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A promise or apparent promise is not consideration if by its terms the promisor or purported promisor reserves a choice of alternative performances unless

  1. each of the alternative performances would have been consideration if it alone had been bargained for; or
  2. one of the alternative performances would have been consideration and there is or appears to the parties to be a substantial possibility that before the promisor exercises his choice events may eliminate the alternatives which would not have been consideration.