Comment by maxlybbert
9 years ago
Don't take my word for it: https://www.law.cornell.edu/wex/illusory_promise .
If Cloudflare can cancel the contract at the CEO's whim without needing to prove that the customer has somehow violated some terms of use, then Cloudflare isn't "bound to perform" using Cornell's terminology.
In ordinary contracts that's true, but this case is different because it's more of a continuing contract
It is not a one time performance like washing a car or shoveling a driveway or buying grocheries. It is a continual term contract where each party agrees to continue going. In these cases, it would be legal to have a clause allowing either party to terminate the contract at any time. Certainly daily stormer was free to stop using cloud flare at any time. And similarly, cloudflare is free to terminate the stormer's account at any time provided they refund the cash. So the contract is not really illusory because both parties still have the obligation to perform, they just don't have the obligation to continue performing.