BUSINESS ADMINISTRATION
BUSINESS LAW
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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nominal
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normal
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insufficient
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Detailed explanation-1: -If you are considering buying a house, there are chances that you will come across the word “Token money”. It is the part of the sales consideration amount paid in advance by the buyer to the seller as part of closing the deal.
Detailed explanation-2: -Nominal consideration is an offer from one party of an agreement to another party that doesn’t have any value in relation to the consideration being offered by the other party.
Detailed explanation-3: -The term “nominal consideration” refers to consideration that is considered consideration in name only and it is so insignificant that it has no relation whatsoever to the actual value of what is being exchanged under the contract (e.g., a person paying $5 to purchase a piece of real estate).
Detailed explanation-4: -Types: Consideration could be a promise, performance, forbearance, or property with legal value, but the economic benefit is not required.