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). Nominal fees are necessary when contracts are signed, since in order for a contract to be valid, some form of payment must be involved.

Examples

In 2006, the

Quebec North Shore and Labrador Railway The Quebec North Shore and Labrador Railway is a private Canadian regional railway that stretches through the wilderness of northeastern Quebec and western Labrador. It connects Labrador City, Labrador, with the port of Sept-Îles, Quebec, on the ...

sold a 135 mile long rail line to

Tshiuetin Rail Transportation Tshiuetin Rail Transportation Inc. is a rail company that owns and operates a Canadian regional railway In the United States, a regional railroad is a railroad company that is not Class I, but still has a substantial amount of traffic or track ...

for $1. Tshiuetin was formed by several

First Nations First Nations or first peoples may refer to: * Indigenous peoples, for ethnic groups who are the earliest known inhabitants of an area. Indigenous groups *First Nations is commonly used to describe some Indigenous groups including: **First Natio ...

communities to continue railroad service on the line, which formerly was used for transporting minerals.

References

Payment terms Costs {{Business-term-stub

Examples

See also

References