LAWastatementin anofficialagreementof theamountofmoneythat someone will need topayif theyfailtoobeytherulesof theagreement:Check thesmallprintbefore yousignanyagreementandwatchout for anypenaltyclauses.(Definition ofpenalty clausefrom theCambridge Business English Dictionary? Cambridge University Press)
Examplesofpenalty clause
penalty clauseIt was not, strictly speaking, apenaltyclause.FromWikipediaThis example is from Wikipedia and may be reused under a CC BY-SA license.However the contract included apenaltyclauserequiring payment of 50,000 per year should the owner require the museum to vacate the slipway.FromWikipediaThis example is from Wikipedia and may be reused under a CC BY-SA license.As another way to compensate for prepayment risk (which is a reinvestment risk), a prepaymentpenaltyclauseis often included in the loan contract.FromWikipediaThis example is from Wikipedia and may be reused under a CC BY-SA license.When such transfer occurs to foreign clubs, the amount of thepenaltyclauseis of free stipulation.FromWikipediaThis example is from Wikipedia and may be reused under a CC BY-SA license.Apenaltyclauseexcludes a claim for damages.FromWikipediaThis example is from Wikipedia and may be reused under a CC BY-SA license.Paragraph 4 of that same article establishes an automatic annual reduction on thepenaltyclause.FromWikipediaThis example is from Wikipedia and may be reused under a CC BY-SA license.For a contractualpenaltyclauseto be valid, one must show that it was drawn up after a bona fide attempt to estimate loss in advance of the breach.FromWikipediaThis example is from Wikipedia and may be reused under a CC BY-SA license.It could be used to create apenaltyclause, concentrating the mind on performance because if the building was not built you would have to pay money.FromWikipediaThis example is from Wikipedia and may be reused under a CC BY-SA license.If there is nopenaltyclausewill the work be finished in time?From theHansard archiveExample from the Hansard archive. Contains Parliamentary information licensed under theOpen Parliament Licence v3.0It is most difficult this year because it is the first year in which thepenaltyclausefor the level of spending has been applied.From theHansard archiveExample from the Hansard archive. Contains Parliamentary information licensed under theOpen Parliament Licence v3.0These examples are from corpora and from sources on the web. Any opinions in the examples do not represent the opinion of the Cambridge Dictionary editors or of Cambridge University Press or its licensors.#https://dictionary.cambridge.org//dictionary/english/penalty-clause##
