Penalty clause

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Revision as of 09:58, 14 December 2019 by imported>Doug Williamson (Create page. Sources: linked pages and Oxford dictionary of law.)
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Law - contract - breach of contract - remedies.

1.

Defined strictly, a penalty clause is a clause in a contract that specifies an amount payable in the event of a breach of the contract, that is not a genuine estimate of the likely loss.

Penalty clauses are usually unenforceable in law.


2.

Loosely, a liquidated damages clause.


See also