- penalty clause
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penalty clause n1: a clause (as in a contract) that calls for a penalty to be paid or suffered by a party under specified terms (as in the event of a breach) and that is usu. unenforceable◇ A penalty clause differs from a liquidated damages clause by not being tied to an estimate of possible actual damages.2: a clause in a statute or judgment that sets forth a penalty for a specific act or omission (as failure to make a support payment on time)
Merriam-Webster’s Dictionary of Law. Merriam-Webster. 1996.
- penalty clause
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n.A clause in a contract or agreement that describes a penalty for a breach, default, or other infraction, usually not enforceable by a court.
The Essential Law Dictionary. — Sphinx Publishing, An imprint of Sourcebooks, Inc. Amy Hackney Blackwell. 2008.
- penalty clause
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A contract clause that imposes an excessive monetary penalty in the event a party defaults. Courts generally don't enforce penalty clauses when the amount imposed is unrelated to the damages incurred.Category: Business, LLCs & CorporationsCategory: Personal Finance & RetirementCategory: Real Estate & Rental Property
Nolo’s Plain-English Law Dictionary. Gerald N. Hill, Kathleen Thompson Hill. 2009.
- penalty clause
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n. A provision in a contract that stipulates an excessive pecuniary charge against a defaulting party. Courts do not generally enforce such a clause, but will enforce liquidated damage clauses when they represent a legitimate approximation of actual damages.See also damages (liquidated damages).
Webster's New World Law Dictionary. Susan Ellis Wild. 2000.
Look at other dictionaries:
penalty clause — penalty .clause n the part of a contract which says what someone will have to pay or do if they do not obey the agreement, for example if they do not complete work on time … Dictionary of contemporary English
penalty clause — A clause found in contract agreements that provides for a penalty in the event of default. Bloomberg Financial Dictionary * * * penalty clause penalty clause ➔ clause * * * penalty clause UK US noun [C] ► LAW a statement in an official agreement… … Financial and business terms
penalty clause — / pen(ə)lti klɔ:z/ noun a clause which lists the penalties which will be imposed if the terms of the contract are not fulfilled ● The contract contains a penalty clause which fines the company 1% for every week the completion date is late … Marketing dictionary in english
penalty clause — / pen(ə)lti klɔ:z/ noun a clause which lists the penalties which will be imposed if the terms of the contract are not fulfilled ● The contract contains a penalty clause which fines the company 1% for every week the completion date is late … Dictionary of banking and finance
penalty clause — noun also penalty indicia : the statement printed on the cover of a piece of government free mail giving notice of the penalty for private use to avoid payment of postage compare frank vt 1 … Useful english dictionary
penalty clause — A provision in a contract stating that if one party breaks the contract (e.g., by failing to deliver goods), that party will be required to pay a penalty, usually in money … Business law dictionary
penalty clause — noun (C) the part of a contract which says what someone will have to pay or do if they break the agreement, for example if they fail to complete work on time … Longman dictionary of contemporary English
clause — [klɔːz ǁ klɒːz] noun [countable] LAW COMMERCE a part of a written law, contract, or legal document that deals with a particular item or subject: • Clause 12 enables the Secretary of State to make orders to protect pension rights. asˈsignment… … Financial and business terms
penalty — pen·al·ty / pen əl tē/ n pl ties 1: a punishment that is imposed on a wrongdoer by statute or judicial decision 2: a pecuniary sum that by agreement is to be paid by a party who fails to fulfill an obligation to another and that is punitive… … Law dictionary
clause — / klȯz/ n: a distinct section of a writing; specif: a distinct article, stipulation, or proviso in a formal document a no strike clause in the collective bargaining agreement claus·al / klȯ zəl/ adj Merriam Webster’s Dictionary of Law. Merriam… … Law dictionary