Penalty

Penalty is a sanction imposed as punishment for wrongdoing or as a consequence of breach of rules. The term originates from the Latin poena meaning punishment. Penalties appear in criminal law, civil law, and various regulatory systems, and may take forms such as fines, imprisonment, restitution, or corrective measures.

In criminal law, penalties are prescribed by statute or court and are designed to deter, incapacitate, rehabilitate, or express condemnation. They can include fines, probation, community service, or imprisonment. The severity is typically calibrated to the offense and the offender's circumstances and may be affected by factors like recidivism.

In contract law, penalties sometimes refer to penalty clauses—provisions that impose a stipulated amount if a party breaches the contract. Many jurisdictions treat punitive penalties as unenforceable and favor liquidated damages that reflect a genuine pre-estimate of loss. Courts may strike down penalties that are extravagant or punitive rather than compensatory.

In sports, a penalty is a sanction for rule violations. In soccer, a penalty kick is awarded from the penalty mark when a foul occurs inside the penalty area; a penalty shootout decides a match tied after overtime. In American football and other sports, penalties may result in yardage or possession changes and are signaled by referees.

Tax and regulatory penalties are imposed by government agencies for noncompliance, underpayment, or violations of rules. They can be monetary fines, interest, or other sanctions and serve to enforce compliance and deter violations.