Is the Arbitration Agreement Illusory?
An illusory promise is one that fails to bind the promisor because he retains the option of discontinuing performance without notice. See O=Farrill Avila v. Gonzalez, 974 S.W.2d 237, 244 (Tex. App.CAustin 1998, pet. denied). Like other contracts, arbitration agreements must be supported by consideration. In re Palm Harbor Homes, 195 S.W.3d at 676. Under Texas law, at‑will employment does not preclude formation of other contracts between employer and employee, so long as neither party relies on continued employment as consideration for the contract. Davidson, 128 S.W.3d at 228. Mutual promises to submit employment disputes to arbitration constitute sufficient consideration to support an arbitration agreement; however, if the employer can avoid its promise to arbitrate, the agreement is illusory. See, e.g., id.; In re Halliburton, 80 S.W.3d at 569B70 (concluding agreement was binding on both the employer and the employee and therefore, was not illusory). To support her argument of illuso
