Multiple choice

When parties cannot state the amount precisely or do not want the public to know.

  1. Legal Value

  2. Nominal Consideration

  3. Contractual Exchange

  4. Adequacy of Consideration
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Nominal consideration is a token amount (such as $1) stated in a contract when the parties do not want to disclose the actual value or when the transfer is essentially a gift but needs to look like a contract. It serves to satisfy the legal requirement of consideration without revealing the true economic exchange to the public. Adequacy of consideration refers to whether the values exchanged are fair, which courts generally do not inquire into.

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