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). Notwithstanding the foregoing, a court could consider nominal consideration to be valid to form an enforceable contract as courts generally do not examine the adequacy of the consideration.
