penalty clause

Definitions of "penalty clause"
  1. A condition in a contract that obligates one party to suffer or pay a penalty if certain specific terms aren't met
  2. A stipulation in a statute or court-decided sentence outlining a penalty for a certain type of act or omission such as delaying a mandated support payment
How to use "penalty clause" in a sentence
  1. The rental agreement outlined a penalty clause if the tenant failed to vacate the premises at the contract's end.
  2. Because of the consistent late payments, a penalty clause was inserted into the child support agreement.
  3. To ensure the project was finished on time, the contractor's business deal included a penalty clause for delayed completion.

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