Chappell & Co Ltd v Nestle Co Ltd · House of Lords · 1959

Are worthless wrappers part of the price?

Short answer: Yes: they count as payment.

The facts. Nestle sold records of the song 'Rockin' Shoes' for a small sum plus three chocolate wrappers. The song's copyright holder objected, since the law set royalties as a share of the sale price. Nestle threw the wrappers away.

The ruling. Chappell v Nestle (1959): The Lords held the wrappers were part of the price, even though they had no value. Payment need only be sufficient, not adequate.

Lord Somervell's line that a peppercorn doesn't stop being good payment because a person doesn't like pepper is still quoted. The wrappers were worth nothing to Nestle, which simply threw them away.

Read the source

For fun, not legal advice.