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|
|Cited Cases:||188 Cal. App. 4|
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).