Penalty clause
A contractual clause that imposes a disproportionate monetary penalty on one party for breach of contract in order to obtain strict compliance by coercion. In contract law generally penalty clauses are void and unenforceable.
A contractual clause that imposes a disproportionate monetary penalty on one party for breach of contract in order to obtain strict compliance by coercion. In contract law generally penalty clauses are void and unenforceable.