penal sum

Definition of "penal sum"
  1. The amount that must be paid as a penalty, particularly as specified in a bond agreement
How to use "penal sum" in a sentence
  1. If the contractor fails to complete the project on time, he will be obliged to pay the penal sum.
  2. The penal sum was set to discourage any breaches of contract.
  3. The penal sum is usually set in advance to make sure the agreement is fulfilled.

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