sham consideration
sham consideration, defined:
a nominal gesture given as a formality, done to create the appearance of a contractual bargain. In reality sham consideration lacks legal value sufficient to support a contract and is used to conceal a gift.
sham consideration, as it might be used:
The Court found that, based on its terms, the $ 40,000 mortgage was sham consideration and was not valid.
An example of sham consideration:
Ralph's girlfriend, Cyndi, gives him a car. Wanting to avoid paying the appropriate fees and taxes for the car's actual value, the couple draws up a bill of sale, listing the price of the car as $1.00. In this case the $1.00 is sham consideration used to mask the gift.
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Clear-Point Law Dictionary
