Penalty

The punishment inflicted by law for an illegal act. The term is used loosely to embrace all the consequences visited by law on those who violate police regulations.

26 Mich. 482.

In a narrower sense it is confined to pecuniary penalties. "The terms fine, forfeiture and penalty are often used loosely and even confusedly. But when a discrimination is made, the word 'penalty' is found to be generic in its character, including both fine and forfeiture."

4 Iowa, 300.

In its narrowest sense, it includes only pecuniary punishment imposed by statute for such unlawful acts as do not constitute crimes or which are for this purpose regarded in other than their criminal aspect. In Contracts. A clause in an agreement, by which the obligor agrees to pay a certain sum of money if he shall fail to fulfill the contract contained in another clause of the same agreement. A penal obligation differs from an alternative obligation, for this is but one in its essence; while a penalty always In- When a breach has taken place, the obligor has his option to require the fulfillment of the first obligation, or the payment of the penalty, in those cases which cannot be relieved in equity, when the penalty is considered as liquidated damages.