12/01/2011 Deja un comentario
In contrast with Spanish law, a contract is not valid in English law if there is no mutual consideration, ie, the parties must supply each other with something of value. Ordinarily, the courts will not inquire into the adequacy of the consideration provided that it exists. Thus, one party can supply something of great value in exchange for something of very little value, eg, to rent a house to a tenant in return for one peppercorn per year. Thus, peppercorn payment is used to describe a very small payment that satisfies the rule of mutual consideration.
Years ago I read a lease for commercial premises in the financial district of London, that would normally be extremely costly to rent. However, the parties had agreed the rent at ‘one Mars Bar or confectionery product of similar qualities and price every year,” a novel example of a peppercorn rent.