penalty clause


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Related to penalty clause: Liquidated damages clause

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 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.
expansive interpretation of the Penalty Clause, interpretations of the
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.
This led Zamalek's officials to demand that the player be banned for signing with two clubs simultaneously and that he be fined LE 30 million, according to the penalty clause in his contract with Zamalek.
The application judge declared that the clause was not only a penalty clause but also unconscionable, and thus unenforceable on both counts.
Appeal, which concluded that it was a penalty clause.
THE rail contractor whose failure to supply engineers fuelled travel chaos over New Year, had no penalty clause in its contract, according to Network Rail.