Words / P / Law

penalty clause

phrase

B1CEFR level
50/100Rarity: uncommon
TechnicalRegister

A term imposing a payment out of all proportion to any legitimate interest in performance, which the courts will refuse to enforce.

The court struck down the provision as an unenforceable penalty clause rather than a genuine pre-estimate of loss.

Topic: Contract collocations in Legal English

Rarity runs from 0 (a word everyone knows) to 100 (almost never seen outside specialist or literary writing). Level is the word's real difficulty on the CEFR scale, from A1 to C2.

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More law words: Contract collocations