nominal consideration

element in a contract that has no significant value; consideration in “name only.”

Nominal consideration is a means of ensuring the enforceability of a contract by having a statement of some exchange or tender of consideration. At common law, nominal consideration was often provided in land conveyances to support the contract for its sale. Such nominal consideration often included some small item removed from the land, like a pepper corn or a clod of dirt. In modern real estate contracts, it is often the case that standardized forms recite language of “$10.00 and other valuable consideration” to satisfy statements of consideration, even though the conveyances typically involve much larger sales prices.