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Contracts: Form and Nominal Consideration

Let’s talk a bit about the form of consideration. In Schnell v. Nell, a man may or may not have received consideration of 1¢ in exchange for a promise to pay a total of $600 to three people to whom his wife wanted to leave some money. She didn’t have any property in her name, so any money would have to come from her husband. The court said that a contract to pay $600 for 1¢ is unconscionable. The consideration of one cent was nominal consideration. Nominal consideration has the form of a bargain, but not the substance of one. Nominal consideration isn’t enough to meet the consideration requirement for an enforceable contract except in two cases: options and guaranties.

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January 9, 2007 - Posted by | Contracts

3 Comments »

  1. Thank You

    Comment by Alex | April 25, 2007 | Reply

  2. Very helpful thanx! way better than the teacher 🙂

    Comment by John B | October 26, 2007 | Reply

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    Comment by Johnd326 | April 28, 2014 | Reply


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