Which term refers to a nominal sum treated as sufficient consideration?
APeppercorn
BPremium
CPenalty
DPledge
Answer & Solution
Correct answer: A. Peppercorn
English law treats even a peppercorn as sufficient consideration if both parties agree to it.
Keep practising Other Essential Elements of a Contract
Browse all Other Essential Elements of a Contract questions for CA Foundation, or explore more Businesslaw topics.
Related questions
Who is typically the perpetrator of undue influence?Undue influence is a process in which whose free will is supplanted?A reward for finishing a job early is a clause of what type?Without consideration, in common law, what follows for the contract?In Pao On v Lau Yiu Long, what must be true of the past act?What is the chief difference between English and Indian consideration rules?Under English law, is moral consideration sufficient for a simple contract?Under English law, what is the rule on past consideration?