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nominal consideration

   Also found in: Dictionary/thesaurus, Medical, Legal, Encyclopedia, Wikipedia 0.01 sec.
nominal consideration

A token payment or promise given in exchange for something else of greater value. Courts will usually not “look behind the value of consideration,”and even a nominal consideration (such as $1) will support a contract and make it enforceable.It will also support a deed, so that it cannot be set aside.



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The Serious Fraud Office, acting for the South African tax investigators, told the court: "In the execution of those fraudulent activities, it was alleged that he had transferred, or arranged to be transferred, his shares in various South African-registered companies into the name of Agnes King, his mother, for no consideration or for nominal consideration.
Under the proposed transaction, all Sunshine shares will be transferred to Rex "for a nominal consideration.
In a grim statement issued yesterday, the firm said: "The terms currently under discussion include a nominal consideration and cash contributions from MFI and the purchaser.
 
 
 
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