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LSDefine
Simple English definitions for legal terms
peppercorn
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A quick definition of peppercorn:
Peppercorn means something that is very small or insignificant. In legal terms, it refers to a nominal consideration, which is a small amount of money or something of little value that is given as part of a contract. Consideration is something that is exchanged between two parties in a contract, and it can be an act, a promise, or something of value. Peppercorn is often used to describe a small amount of money that is given as consideration in a contract, even though it is not equal in value to what is being exchanged.A more thorough explanation:
Definition: Peppercorn refers to a small or insignificant thing or amount that is given as nominal consideration in a contract. It can be any act, forbearance, or promise that motivates a person to engage in a legal act. Consideration is necessary for an agreement to be enforceable.
Example: In a contract for the sale of a house, the buyer offers to pay the seller $1 as nominal consideration. This $1 is the peppercorn in the contract. Despite the small amount, the contract is upheld because it involves consideration.
Explanation: The example illustrates how peppercorn is used in a contract to provide nominal consideration. The buyer offers to pay $1, which is a small amount, but it is still considered consideration. The contract is upheld because it involves consideration, even if it is just a nominal amount.