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Issue: Under California law, may a settlement agreement be viewed as an illusory contract?
| Area of Law: | Business Organizations & Contracts, Litigation & Procedure |
| Keywords: | Illusory contract; Settlement agreement |
| Jurisdiction: | California |
| Cited Cases: | 188 Cal. App. 4 |
| Cited Statutes: | None |
| Date: | 05/01/2015 |
A settlement agreement may also be an illusory contract. See Chicago Title Ins. Co. v. AMZ Ins. Services, Inc., 188 Cal. App. 4th 401, 421-22 (2010) (quoting Scottsdale Ins. Co. v. Essex Ins. Co., 98 Cal. App. 4th 86, 94-95 (2002)) (holding parties must exchange promises that represent legal obligations to create valid contract and contract is illusory when one party assumes no obligations).
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