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. 2015.

Look at other dictionaries:

  • penalty clause — n 1: 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… …   Law dictionary

  • 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 — 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

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