Peppercorn (law)
Legal term / From Wikipedia, the free encyclopedia
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In legal parlance, a peppercorn is a metaphor for a very small cash payment or other nominal consideration, used to satisfy the requirements for the creation of a legal contract. It is featured in Chappell & Co Ltd v Nestle Co Ltd ([1960] AC 87), which stated that "a peppercorn does not cease to be good consideration if it is established that the promisee does not like pepper and will throw away the corn".[1][2] However, the cited passage is mere dicta, and not the basis for the decision.