/ˈpɛnəlti klɔz/ – Phrase
Definition: điều khoản phạt.
A more thorough explanation: A penalty clause is a contractual provision that imposes a specific punishment or penalty for a party’s failure to fulfill their obligations under the contract. It is intended to incentivize performance and deter breaches of contract. Penalty clauses are subject to legal scrutiny to ensure they are not punitive in nature and are reasonable in relation to the actual damages incurred as a result of the breach.
Example: The penalty clause in the contract stipulates that if the project is not completed on time, the contractor will be liable to pay a penalty of $1000 per day of delay.