Legal Definitions - peppercorn

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.