Penalty clause


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Related to Penalty clause: Liquidated damages clause

Penalty clause

A clause found in contract agreements that provides for a penalty in the event of default.

Penalty Clause

In a contract, especially a loan agreement, a clause stating that the payer must pay extra in the event of a late payment and/or default. The penalty clause states the amount of the penalty and the circumstances under which it must be paid.
References in periodicals archive ?
Death penalty abolitionists hoped that the country would finally repeal the death penalty clause from the penal code in accordance with international laws.
Penalty clauses are unenforceable and it is the foolish attorney who uses the word "penalty" in drafting a contract --except in the phrase "not a penalty.
The next time you make an agreement with a seller, please do not forget to include a penalty clause against any withdrawals.
The dissenting judge concluded that the penalty clause was not unconscionable.
He says: "If the person selling the house agrees to complete before March 24, you can always add a penalty clause to the contract, saying that if they fail to do so, the value of your offer is reduced by the amount of stamp duty you will have to pay.
The high court had earlier argued that rules were violated as the new/additional charges against Salem entailed the death penalty clause, which refutes the extradition rules of Europe.
It would also strike out section 5A, the penalty clause.
2) The section in question was the Penalty Clause, which allows states
The ministry has signed a penalty clause if the company fails to complete
There may have been arrears, as well as a penalty clause for terminating the loan agreement early.
A Jordanian court ruled in Mohammad's favor and sentenced Diana to three months in jail, or pay the penalty clause in the contract between them.
Liverpool would argue that under new Premier League rules regarding parent companies, if the club itself is a fully solvent entity, as Liverpool are, then the penalty clause should not apply.