Promises that vanish like smoke and mirrors? Illusory! No binding handshakes, just empty words. No value exchanged, just air castles built on sand. Courts see through the haze, leaving empty promises to fade. So, the statement is True.
An illusory promise doesn't truly bind a party because it lacks consideration, meaning something of value being exchanged for the promise. This makes it unenforceable in a court of law.
The other options don't apply:
Past consideration: Actions or services already performed can't usually be used as consideration for a new promise.
Breach of contract: Occurs when a party fails to fulfill their obligations under an existing contract, not the absence of an obligation itself.
Pre-existing duty: Refers to an existing obligation due to another legal relationship, not a new promise.
Therefore, if a promise lacks the binding force of consideration, it falls under the category of an illusory promise.
Therefore, the statement is True.