33:
815:"buyer" who then dutifully handed it to the "seller". The dollar was not considered real consideration, not because the dollar was too small an amount, but because it did not induce the seller to part with the property. Such promises that are motivated by love and affection are insufficient to constitute consideration.
847:
specific payment listed in the contract, or the contract will be considered void for lack of consideration. So the contract may be written to reflect that the house is being sold in return for "ten dollars and other good and valuable consideration". The ten dollars is the "peppercorn" that provides
913:
defines a peppercorn rent for the first time in
English law as an annual rent of one actual peppercorn and limits ground rent on most new residential long leases to that amount. Besides there being no obligation for a landlord to actually levy the rent, the law also bans landlords from charging any
856:
Another common example is the
English OR practice of "peppercorn rent", the nominal rental sum for property, land or buildings. Where a rental contract is put in place and the owner of the property wishes it to be rent-free, it is normal to charge a small sum as "peppercorn rent", because if the
818:
So, in order for an essentially one-sided contract (such as a gift) to still be valid and binding, the contract will generally be written so that one side gives up something of value, while the other side gives a token sum—one pound, dollar, or literally one peppercorn. Peppercorn payments are
802:
However, courts will not generally inquire into the adequacy or relative value of the consideration provided by each party. So, if a contract calls for one party to give up something of great value, while the other party gives up something of much lesser value, then it will generally still be
1077:
A Dictionary of
American and English Law: With Definitions of the Technical Terms of the Canon and Civil Laws : Also, Containing a Full Collection of Latin Maxims, and Citations of Upwards of Forty Thousand Reported Cases in which Words and Phrases Have Been Judicially Defined Or
995:, which was founded in the 1969. In August 2023, the ANU LSS launched the 'Peppercorn Pedestal', featuring a dried black peppercorn on a small velvet pillow in celebration of the various student traditions involving peppercorns at the
869:
where a (potentially substantial) premium has also been paid on commencement of a long lease of, say, 99 or 125 years (a "virtual freehold"). The notional collection of the annual peppercorn rent helps to maintain a formal
294:
1402:
881:
A peppercorn rent is sometimes denominated in whimsical physical goods rather than currency. For example, many of the buildings in London's Covent Garden are leased at a rent of "one red apple and a posy of flowers", the
831:, the seller may actually agree to make a large payment to the buyer. But the buyer must still make some payment, however small, for the company in order to establish that both sides have given consideration.
803:
considered a valid contract, even though the exchange of value greatly favors one side. Courts, however, will reject "consideration" that was not truly bargained for. For example, in the 1904 case
299:
961:
from
Sevenoaks Town Council at a yearly rent of one peppercorn. It is many years since the club paid only one peppercorn for the rent of the pavilion. The council, in return, gives a new
848:
concrete consideration and ensures that the contract is valid, while the actual amount paid for the house is hidden and referred to only as the "other good and valuable consideration".
811:
held that the one dollar paid for the sale of real property did not constitute valuable consideration since the transaction had not been bargained for—a dollar was handed to a mentally
839:
A peppercorn is also used in more balanced contracts, where one side wishes to conceal the nature of their payment. For example, since real estate contracts are generally matters of
513:
795:. In other words, each party will give something of value to the other party for the contract to be considered binding. The situation is different under contracts within
775:
if it is established that the promisee does not like pepper and will throw away the corn". However, the cited passage is mere dicta, and not the basis for the decision.
1443:
562:
687:
254:
976:'s main campus is on a 999-year lease from the then Bath City Council. Each year a peppercorn is presented by the Treasurer of the University to the Chairman of the
1462:
799:
jurisdictions because such nominal consideration can be categorised as a disguised gift. The remainder of this section is a U.S. perception, not
English.
1241:
672:
3 Historically restricted in common law jurisdictions but generally accepted elsewhere; availability varies between contemporary common law jurisdictions
1132:
1106:
1208:
910:
732:
763:
1272:
1319:
1288:
1255:
1224:
1148:
1122:
1089:
886:
station at St Albans Head occupies buildings owned by the
Encombe Estate in exchange for "one crab per annum if demanded" while the
1305:
824:
318:
282:
883:
1072:
1484:
988:
887:
311:
1336:
977:
862:
577:
167:
62:
1470:
843:, the purchaser of a house may not wish to list the exact amount of the payment on the contract. But there must be
725:
676:
597:
323:
1185:
572:
531:
443:
1247:
796:
379:
92:
927:
871:
1543:
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1140:
1114:
946:
on a velvet cushion atop a silver platter, in an annual ceremony performed since 1816 on or about 23 April.
701:
552:
361:
211:
1514:
1081:
808:
277:
237:
162:
138:
120:
1028:
1538:
1280:
718:
705:
694:
567:
557:
501:
125:
1485:""Councillors call for end to peppercorn rent paid by University of Bath after 'clear loss of trust'""
1166:
935:
768:
585:
422:
272:
151:
57:
52:
1213:
International Asset
Transfer: An Overview of the Main Jurisdictions : a Practitioner's Handbook
1403:"Leasehold Reform (Ground Rent) Act 2022: Guidance for leaseholders, landlords and managing agents"
1358:
958:
943:
341:
232:
97:
77:
996:
973:
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432:
404:
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216:
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1144:
1118:
1085:
1008:
895:
484:
473:
194:
143:
134:
115:
72:
1211:. In Pfeiffer, Gero F.; Timmerbeil, Sven; Johannesdotter, Frederik; Tidwell, Kay L. (eds.).
812:
507:
394:
389:
351:
346:
189:
172:
865:
exists for both parties. Furthermore, a peppercorn rent is often used as a form of nominal
966:
891:
510:(also implied covenant of good faith and fair dealing or duty to negotiate in good faith)
399:
129:
106:
704:, and Canadian jurisprudence in both Québec and the common law provinces pertaining to
645:
536:
467:
452:
200:
47:
1380:
1532:
1243:
Real Estate
Closing Deskbook: A Lawyer's Reference Guide & State-by-state Summary
981:
840:
792:
772:
754:
436:
184:
157:
87:
962:
640:
635:
622:
413:
67:
1053:
878:
from the tenant arising, were no consideration to be paid for an extended period.
771:
case where the House of Lords stated that "a peppercorn does not cease to be good
32:
923:
906:
866:
784:
478:
384:
289:
206:
1499:
1444:"Not to be Sneezed at - a peppercorn paid from Savills sponsored cricket club"
939:
788:
680:
663:
82:
1311:
820:
631:
306:
899:
758:
750:
461:
356:
179:
24:
791:
systems, a binding legal contract requires that each party must provide
954:
931:
427:
828:
823:
may be negative. If some party agrees to take it over and assume its
858:
980:
Council as rent (but also to further the relationships between "
617:
757:, used to satisfy the requirements for the creation of a legal
607:
1426:"Peppercorn ceremony draws Freemasons from US, UK and Canada"
874:
between the two parties, precluding the risk of a claim for
1186:"The Peppercorn Theory and the Restatement of Contracts"
697:
both in Québec and in the country's common law provinces
819:
sometimes used when selling a struggling company whose
991:
Law
Students' Society (ANU LSS) has a magazine called
914:
administrative fee for collecting a peppercorn rent.
700:
7 Specific to civil law jurisdictions, the
American
514:Contract A and Contract B in Canadian contract law
1277:Landlord and Tenant Law: Past, Present and Future
918:Transactions and traditions involving peppercorns
861:the property, he must charge some rent so that
669:2 Specific to civil and mixed law jurisdictions
1337:"Capital & Counties JV wins Covent Garden"
1071:Rapalje, Stewart; Lawrence, Robert L. (1997).
726:
8:
1500:"Historical editions of Peppercorn Magazine"
1273:"Long Residential Leases: Future Directions"
938:as its lodge for the annual sum of a single
1029:"Standard Deviants: All About Business Law"
706:contractual and pre-contractual negotiation
733:
719:
20:
1359:"Coastguard History at St Alban's Head"
1020:
911:Leasehold Reform (Ground Rent) Act 2022
753:for a very small cash payment or other
653:
605:
544:
523:
493:
451:
412:
369:
333:
262:
224:
105:
39:
23:
502:Duty of honest contractual performance
1515:"Peppercorn Pedestal - an exhibition"
835:Concealing the value of consideration
764:Chappell & Co Ltd v Nestle Co Ltd
690:of International Commercial Contracts
7:
1498:Peppercorn Magazine (13 July 2023).
1513:Florance, Callum (20 August 2023).
949:The Sevenoaks Vine Cricket Club in
787:, and other countries with similar
679:and other civil codes based on the
14:
1361:. National Coastwatch Institution
1137:Gifts: A Study in Comparative Law
1111:Gifts: A Study in Comparative Law
1461:René Gayle (19 September 2013).
504:(or doctrine of abuse of rights)
319:Enforcement of foreign judgments
283:Hague Choice of Court Convention
31:
1184:Edmund Polubinski, Jr. (1968).
1172:Court of Civil Appeals of Texas
1107:"The Legal Concept of the Gift"
1424:Ceola Wilson (22 April 2013).
989:Australian National University
890:leases untenanted land on the
888:Isles of Scilly Wildlife Trust
312:Singapore Mediation Convention
1:
1190:William & Mary Law Review
1054:"How does a company cost ÂŁ1?"
686:5 Explicitly rejected by the
453:Quasi-contractual obligations
1335:Molly Dover (28 July 2006).
978:Bath and North East Somerset
872:landlord–tenant relationship
1463:"When to execute as a deed"
852:In leases for real property
1560:
1275:. In Bright, Susan (ed.).
1209:"United States of America"
805:Fischer v. Union Trust Co.
324:Hague Judgments Convention
969:every year if requested.
675:4 Specific to the German
1307:Law for Non-Law Students
1248:American Bar Association
1207:Valenta, Marcel (2010).
1131:Hyland, Richard (2009).
1105:Hyland, Richard (2009).
779:Function in contract law
767:( AC 87), an important
380:Anticipatory repudiation
130:unequal bargaining power
1240:Boackle, K. F. (2003).
1141:Oxford University Press
1115:Oxford University Press
702:Uniform Commercial Code
677:BĂĽrgerliches Gesetzbuch
362:Third-party beneficiary
334:Rights of third parties
212:Accord and satisfaction
1271:Clarke, David (2006).
809:Michigan Supreme Court
433:Liquidated, stipulated
278:Forum selection clause
163:Frustration of purpose
1304:Owens, Keith (2013).
1281:Bloomsbury Publishing
755:nominal consideration
745:In legal parlance, a
695:Canadian contract law
63:Abstraction principle
1314:. pp. 104–105.
1283:. pp. 171–190.
1219:. pp. 591–616.
1167:Batsakis v. Demotsis
1143:. pp. 353–498.
1117:. pp. 127–218.
1084:. pp. 267–269.
1082:The Lawbook Exchange
769:English contract law
761:. It is featured in
524:Related areas of law
423:Specific performance
273:Choice of law clause
238:Contract of adhesion
152:Culpa in contrahendo
58:Meeting of the minds
53:Offer and acceptance
1519:Peppercorn Magazine
1487:. 14 December 2017.
1383:. Duchy of Cornwall
993:Peppercorn Magazine
959:Vine Cricket Ground
944:Governor of Bermuda
942:, presented to the
907:ground rent scandal
905:In response to the
884:National Coastwatch
688:UNIDROIT Principles
462:Promissory estoppel
342:Privity of contract
295:New York Convention
255:UNIDROIT Principles
98:Collateral contract
93:Implication-in-fact
78:Invitation to treat
1170:, 226 S.W.2d 673 (
997:ANU College of Law
974:University of Bath
909:of the 2010s, the
876:adverse possession
508:Duty of good faith
405:Fundamental breach
371:Breach of contract
300:UNCITRAL Model Law
264:Dispute resolution
249:Contra proferentem
243:Integration clause
217:Exculpatory clause
1430:The Royal Gazette
1381:"Isles of Scilly"
1217:Walter de Gruyter
1133:"Making the Gift"
1060:. 21 August 2006.
1058:BBC News Magazine
1009:One-dollar salary
896:Duchy of Cornwall
743:
742:
586:England and Wales
494:Duties of parties
485:Negotiorum gestio
474:Unjust enrichment
195:Statute of frauds
144:Unconscionability
116:Misrepresentation
73:Mirror image rule
1551:
1523:
1522:
1510:
1504:
1503:
1495:
1489:
1488:
1481:
1475:
1474:
1473:on 2 April 2015.
1469:. Archived from
1467:Jamaica Observer
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735:
728:
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563:China (mainland)
532:Conflict of laws
395:Efficient breach
390:Exclusion clause
190:Illusory promise
173:Impracticability
35:
21:
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1450:. 31 July 2012.
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1406:
1405:. HM Government
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1339:. Property Week
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1080:. Vol. 1.
1073:"Consideration"
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1037:
1035:
1027:
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1017:
1005:
967:Baron Sackville
936:Old State House
920:
892:Isles of Scilly
857:owner wants to
854:
837:
827:as well as its
781:
739:
710:
582:United Kingdom
545:By jurisdiction
17:
12:
11:
5:
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1547:
1546:
1544:Legal fictions
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1250:. p. 65.
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537:Commercial law
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201:Non est factum
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1196:(1): 201–211.
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924:Masonic Lodge
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168:Impossibility
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867:ground rent
825:liabilities
813:incompetent
785:English law
479:Restitution
290:Arbitration
1533:Categories
1015:References
940:peppercorn
902:per year.
789:common law
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681:pandectist
664:common law
444:Rescission
352:Delegation
347:Assignment
135:Illegality
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1312:Routledge
1078:Construed
951:Sevenoaks
894:from the
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797:civil law
683:tradition
553:Australia
400:Deviation
307:Mediation
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1038:19 March
1003:See also
900:daffodil
898:for one
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751:metaphor
646:Evidence
618:Tort law
591:Scotland
414:Remedies
357:Novation
180:Hardship
107:Defences
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1448:Savills
1365:30 June
955:England
932:Bermuda
636:estates
568:Ireland
185:Set-off
126:Threats
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632:trusts
606:Other
558:Canada
859:lease
749:is a
654:Notes
628:Wills
610:areas
573:India
435:, or
385:Cover
1411:2022
1389:2020
1367:2016
1345:2010
1316:ISBN
1285:ISBN
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1086:ISBN
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