Nominal fee
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A nominal fee refers to a sale of a good or service for far less than it is actually worth, when it cannot be given away for free. Typically, such a sale will be for the smallest full denomination of a currency (for example, one dollar).[1] Nominal fees are necessary when contracts are signed, since in order for a contract to be valid, some form of payment must be involved.[1]
Examples
[edit]In 2006, the Quebec North Shore and Labrador Railway sold a 135 mile long rail line to Tshiuetin Rail Transportation for $1. Tshiuetin was formed by several First Nations communities to continue railroad service on the line, which formerly was used for transporting minerals.[2]
See also
[edit]- Peppercorn (legal) Similar concept, specific to United Kingdom law
References
[edit]- ^ a b Braae, Alex (2020-05-26). "Sold for a buck: Why Stuff and other huge businesses change hands for $1". The Spinoff. Retrieved 2021-11-04.
- ^ Savage, Rachel (3 November 2018). "Life in the frozen north: Canada's first native-owned train is the pride of its community". Independent.co.uk. Archived from the original on 2018-11-27. Retrieved November 3, 2021.
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