penalty clause

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penalty clause

A contract provision setting forth the damages a party must pay in the event of his breach. If such a clause is regarded by the court as too harsh to be regarded as a fair estimate of probable damages, it will normally be held invalid. See liquidated damages.
References in periodicals archive ?
The new State Finance Act should thus strengthen these time-lines and ensure, by way of penalty clauses, that Accounting Officers adhere to these time-lines," he said.
The majority of the Ontario Court of Appeal focused on whether the penalty clause was so unconscionable as to be unenforceable.
There is no need for a rule that singles out penalty clauses for special treatment.
greater enforceability of penalty clauses is a positive change in the
I doubt it'll be pursued but the penalty clauses for breach can be anything up to two years' dough.
STIFF penalty clauses to force contractors to finish the Ricoh Arena on time were not put in place because they were too costly, it has emerged.
For years utility and cable contractors have only needed permission from local councils to dig up roads, and haven't been constrained by time limits or penalty clauses.
In what has been called one of the worst business deals in the history of the country, the company agreed to penalty clauses in a 1993 contract with foreign vendors to install 1.
The company did not give a reason for its withdrawal, although it might have been discouraged by the strict performance targets and penalty clauses set for suppliers by the UK government.
Simply call lenders and ask them directly about their prepayment penalty clauses.
There may be penalty clauses if you don't reach targets, for example, and these targets may get harder once every Joe Bloggs on the block has an ATM.
make sure your contract has stringent penalty clauses for failure to perform.