American Contract Law for a Global Age, 2017a

future action subject to his own future will, just as it would have been had he said no
words at all. Torncello v. United States, 681 F.2d 756, 769 (Ct. Cl. 1982) (quoting 1
ARTHUR L. CORBIN, CORBIN ON CONTRACTS § 145 (1963)). The government had the
option of attempting to obtain firefighting services from Ridge Runner or any other
source, regardless of whether that source had signed a tender agreement. The
Agreements contained no clause limiting the government’s options for firefighting
services; the government merely “promised” to consider using Ridge Runner for
firefighting services. Also, the Tender Agreement placed no obligation upon Ridge
Runner. If the government came calling, Ridge Runner “promised” to provide the
requested equipment only if it was “willing and able.” It is axiomatic that a valid
contract cannot be based upon the illusory promise of one party, much less illusory
promises of both parties. See Restatement (Second) of Contracts § 71(1).
Accordingly, the decision of the Department of Agriculture Board of Contract
Appeals is affirmed.
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Review Question 1. “The Tender Agreements here are nothing but illusory
promises,” says the Federal Circuit Court of Appeals, and therefore lacked
consideration to support the existence of an enforceable contract. Think about the
distinction the court draws with the Ace Federal case it discusses. What makes a
promise “illusory” such that it lacks consideration?
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JANKOWSKI v. MONCLOVA-MAUMEE-TOLEDO
JOINT ECONOMIC DEVELOPMENT ZONE
Court of Appeals of Ohio
185 Ohio App. 3d 568, 924 N.E.2d 932 (2010)
[Three local government entities created a special Joint Economic
Development Zone in Monclova Township. After the JEDZ was created, it entered
into a contract with the township to receive certain government services.]
The “governmental services” contract between the Joint Economic
Development Zone and Monclova township provides that the township “shall furnish
or cause to be furnished to the properties included in the JEDZ territory, all usual
and customary governmental services furnished by Monclova to other comparable
properties in Monclova, including: fire protection, medical rescue, and road
maintenance services.” In return Monclova Township is to receive one-third of the net
tax revenues from the zone.
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UNIT 7: THE BASIC REQUIREMENT OF CONSIDERATION 121