Financial Penalty

/ˈfaɪnænʃəl ˈpɛnəlti/

Definitions

  1. (n.) A monetary sum imposed by a court or regulatory authority as punishment for breach of law or regulation.
    The company was ordered to pay a financial penalty for violating environmental laws.

Forms

  • financial penalty
  • financial penalties

Commentary

Financial penalties often serve both punitive and deterrent purposes and should be clearly distinguished from compensatory damages in legal drafting.

This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.

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