 So, in order for an essentially one-sided contract (such as a gift) to still be valid and binding, the contract will generally be written so that one side gives up something of value, while the other side gives a token sum—one pound, dollar, or literally one peppercorn.Peppercorn payments are sometimes used when selling a struggling company whose net worth may be negative.If some party agrees to take it over and assume its liabilities as well as its assets, the seller may actually agree to make a large payment to the buyer.