penalty

penalty' is not restricted to fine or imprisonment. It means...the imposition of any sanction which makes assertion of the Fifth Amendment privilege 'costly.

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.

A clause in an agreement, by which the obligor agrees to pay a certain sum of money if he shall fail to fulfil the contract contained in another clause of the same agreement. A penal obligation differs from an alternative obligation, for the latter is but one in its essence; while a penalty always includes two distinct engagements, and when the first is fulfilled the second is void. When a breach has taken place, the obligor has his option to require the fulfilment 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. Dalloz, Diet. Obligation aveo Clause penale. A distinction is made In courts of equity between penalties and forfeitures. In cases of forfeiture for the breach of any covenant other than a covenant to pay rent, relief will not be granted in equity, unless upon the ground of accident, fraud, mistake, or surprise, when the breach is capable of compensation; Eden, Inj. 22; 3 Yes. 692; 18 id. 58. For the distinction between a penalty and liquidated damages, see Liquidated Damages. The penalty remains unaffected, although the condition may have been partially performed: as, in a case where the penalty was one thousand dollars, and the condition was to pay an annuity of one hundred dollars, which had been paid for ten years, the penalty was still valid; Blackmer v. Blackmer’s Adm’r, 5 Vt. 355. The punishment inflicted by a law for its violation. The term is mostly applied to a pecuniary punishment; see Stearns v. Barrett, 1 Pick. (Mass.) 451, 11 Am. Dec. 223; 1 Saund. 58, n.; 16 Viner, Abr. 301; Torbett v. Godwin, 62 Hun 407, 17 N. Y. Supp. 46; U. S. v. Mathews, 23 Fed. 74; The Strathairly, 324 U. S. 571, 8 Sup. Ct. 609, 31 L. Ed. 580; although not restricted to it; State v. Hardman, 16 Ind. App. 357, 45 N. E. 345. When a statute creating a forfeiture does not prescribe the mode of collecting it, either debt, information, or indictment will lie; U. S. v. Stocking, 87 Fed. 858. Section 975 of U. S. R. S. recognized the right to institute suits, but there are authorities which maintain that unless authorized by statute, the informer cannot sue in his own name for the penalty; U. S. v. Stocking, 87 Fed. 861. See Qui Tam. ment, whether corporal or pecuniary, Imposed and enforced by the state for a crime or offence against its laws; Huntington v. Attrlll, 146 U. S. 657, 13 Sup. Ct 224, 36 L. Ed. 1123.

A punishment; a punishment imposed by statute for the com mission of a specified offense; a pecuniary punishment, — a sum oi money by statute to be paid as a punishment for a certain act; a sum of money agreed on to be paid in case of non-performance of a contract; a sum of money named in a bond as a forfeit, if the obligor fails to perform according to the condition.

1. Punishment; especially a pecuniary fine, or mulct. 2. Money recoverable by virtue of a statute imposing a pecuniary loss or payment by way of punishment. 3. A sum named in a bond as the amount to be forfeited by the obligor, in case he does not comply with the conditions of the bond. In early common-law times, this penalty could be enforced by action in the law court's, if the condition was not punctually performed; but courts of equity early assumed jurisdiction to relieve obligors, and require bond creditors to be satisfied with so much of the penalty as would cover the debt and interest, with what would meet their just demand. Courts of law fell into the same practice; and it is now generally established. Hence the penalty, or penal sum of a bond, is, as respects amount, a nominal sum, — only a limit on the creditor's recovery. A penalty is an agreement to pay a greater sum, to secure the payment of a less sum. It is conditional, and can be avoided by the payment of the less sum before the contingency agreed upon shall happen. By what name it is called is immaterial. Henry v. Thompson, Minor, 209, 227. That penalty does not import punishment of the person, see Kinney v. Hosea, 3 Harr, (Del.) 77. The word penalty does not necessarily imply a j Bxed sum; any thing imposed as a punism Bgrrt, whether^,_S2ejafic or mej' ured Dy"tne^2:glue of theijitSIEat-afi StW by the act complained of Tinay be a penalty. Merchants' Bank of N. H. v. BUss, 13 Aib. Pr. 225, 237.

contr., is a clause in an agreement, by which the obligor agrees to pay a certain sum of money, if he shall fail to fulfil the contract contained in another clause cult, in many cases to distinguish between a penalty and liquidated damages. In general, the courts have inclined to consider the sum reserved by such agreement to be a penalty, rather than as stipulated damages, (q. v-) When from the form of the instrument, as the case of a money bond, or when the parties agreed not to do a particular act under “a penalty of 100 dollars,” it is sufficiently clear a penalty was intended. But in a case where a party binds himself to pay a certain sum of money, if he should violate his agreement, which “sum mentioned is to be considered as liquidated damages, such sum will not be considered as a penalty.” 1 Holt N. P.C. 43; 1 Bingh. R. 302; S.C. 8 Moore, 244; 4 Burr. 2229. Vide 3 John. Cas. 297; 1 Pick. R. 451; 15 Mass. 488; 7 John. 72; 4 Mass. 433; 8 Mass. 223; 8 Com. Dig. 846; 16 Vin. Ab. 301; 1 Vern. 83, n.; 1 Saund. 58,n.; 1 Swans. 318.