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Simple English definitions for legal terms
civil penalty
Read a random definition: definitive sentence
A quick definition of civil penalty:
A civil penalty is a punishment in the form of a fine that is imposed on someone who has broken a law or regulation. It is different from compensation, which is money paid to someone who has been harmed by the wrongdoing. Civil penalties can also be imposed for breaking a contract, such as not paying back a loan on time. If a contract specifies a penalty for breaking it, the penalty must be reasonable and not excessive.
A more thorough explanation:
A civil penalty is a punishment imposed on a wrongdoer for violating a statute or regulation. It is usually in the form of a fine, but can also include other charges or damages.
- The Environmental Protection Agency (EPA) levied a civil penalty of $10,000 on a manufacturer for exceeding its pollution limits.
- A borrower who pays off a loan before it is due may be charged a prepayment penalty.
- Some contracts include penalty clauses that impose excessive damages on a party that breaches the contract.
These examples illustrate how civil penalties can be imposed for various types of violations, including environmental regulations, loan agreements, and contracts. The penalties are intended to deter future violations and compensate for any harm caused by the wrongdoing.