An example of an illusory contract would be if the spokesperson sold a statement such as “The seller agrees to sell all a particular product he wants” to a buyer. On closer examination of the data, the promise spokesperson has the choice of performing or not performing it. This means that the spokesperson has not legally committed to carry out the act. Valid contracts involve a commitment from one party to provide goods or services and the other party promises to pay a certain amount or other consideration in return for goods or services. On the other hand, an illusory treaty, whether in writing or by oral promise, is merely an illusion of treaty. “The respondent`s priority discretion qualifies his promise to pay consumers in such a way as to make the promise illusory.” If the provisions of the promise are left to the discretion or control of the person making the promise, then nothing is absolutely promised and so it is illusory. Another example would be that the board promised to buy as many goods as the board of directors wanted to order from a local company. It is not a binding treaty. It`s illusory. In particular, respondents never speak directly about inequality in the use of the wage relations technique; Instead, the researcher establishes a measure of the respondent`s “preference” based on the open numerical estimates provided by the respondent. Can this question of economic inequality explain the surprising convergence on inequality across the political spectrum? We first investigate the possibility that this discovery is an artifact of an anchoring effect.
Most people significantly underestimate current economic inequalities (Norton and Ariely Reference Norton and Ariely 2011). Even in the United States, where a majority acknowledges that inequality has increased over the past 20 years (Bartels Reference Bartels2005), Americans underestimate the extent of inequality. Indeed, many Western countries largely agree that the income gaps are too large (Svallfors Reference Svallfors1993). Svallfors Reference Svallfors1997; Kelley and Zagorski reference Kelley and Zagorski2004; Osberg and Smeeding Reference Osberg and Smeeding2006). In addition, a majority of Americans support a cap on very high incomes (Burak Reference Burak2013) and there seems to be a widespread and pervasive desire to reduce economic inequality. The other type of illusory undertaking is contained in contracts that allow one party to terminate the contract to the other party as it sees fit and without prior notice. For example: Illusory Promises: an agreement in which a party makes a promise as a reflection that does not really require it to do anything in accordance with the treaty. If a contracting party has a unilateral right to amend the terms of the contract without the consent of the other party or without notice, it is an illusory undertaking.