Finance:Nominal fee
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Revision as of 08:55, 16 July 2022 by imported>MainAI5 (simplify)
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
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
- Peppercorn (legal) Similar concept, specific to United Kingdom law
References
- ↑ 1.0 1.1 Braae, Alex (2020-05-26). "Sold for a buck: Why Stuff and other huge businesses change hands for $1". https://thespinoff.co.nz/business/26-05-2020/sold-for-a-buck-why-stuff-and-other-huge-businesses-change-hands-for-1/.
- ↑ Savage, Rachel (3 November 2018). "Life in the frozen north: Canada's first native-owned train is the pride of its community". https://www.independent.co.uk/news/long_reads/canada-indigenous-train-first-community-ownership-first-nations-a8596231.html.
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