penalty clause

A contractual provision that assesses against a defaulting party an excessive monetary charge unrelated to actual harm.

• Penalty clauses are generally unenforceable. — Often shortened to penalty.

— Also termed penal clause. Cf. LIQUIDATED-DAMAGES CLAUSE; LIMITATION-OF-REMEDIES CLAUSE. [Cases: Damages 76, 80. C.J.S. Damages §§ 176, 185–187, 190–192, 194.]

---

词条贡献者

译者Carl，知名法学院保险学专业，擅长翻译各种与保险理赔追索相关的法律文件。