penalty clause
(redirected from Penalty Clauses)

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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.

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penalty clause (redirected from Penalty Clauses)

penalty clause
(redirected from Penalty Clauses)