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 ?
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.
PENALTY CLAUSE: Boss Stale Solbakken remonstrates with the match officials after the penalty decision which went against Wolves at The Riverside Stadium.
But the idea that there is no penalty clause for the company is just not good enough.
the agreements conducted with QInvest - regarding the strategic alliance - do not include a penalty clause in case of the termination of any party to those agreements; however, consequences of such termination - like any contract - are subject to judicial claims."
The majority of the Ontario Court of Appeal focused on whether the penalty clause was so unconscionable as to be unenforceable.
Estate agent Adam Hesse, of Aston Mead (www.astonmead.com) in Surrey, suggests a penalty clause can help.
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.
to hatred or contempt" those who are "identifiable on the basis of a prohibited ground of discrimination." It would also strike out section 5A, the penalty clause. The Human Rights Act does not define "hate."
(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