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What is another word for PENALTY CLAUSE?

Pronunciation: [pˈɛnə͡lti klˈɔːz] (IPA)

A penalty clause is a contractual provision that stipulates the cost or fine a party would entail if they fail to fulfill the terms of the agreement. However, several terms can be used to denote such a provision, such as a liquidated damages clause, a forfeiture clause, or a compensation clause. A liquidated damages clause states the exact monetary value that the non-defaulting party would get if the defaulting party fails to meet the contract expectations. A forfeiture clause involves the relinquishment of a specific asset or right as a penalty for defaulting. A compensation clause entitles the non-defaulting party to recover the losses incurred due to the faulty party's breach of contract.
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A hypernym is a word with a broad meaning that encompasses more specific words called hyponyms.

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