penalty

In the broad sense of the term, the consequences visited by law upon the heads of those who violate the law, particularly provisions of the criminal law and police regulations. A punishment for the nonperformance of an act or for the performance of an unlawful act, the character of the imposition not being changed by the manner in which it is inflicted, whether by civil action or criminal prosecution. 36 Am J2d Forf & P § 2. In a narrower sense, an extraordinary liability to which the law subjects a wrongdoer in favor of the person wronged, such liability not being limited to the damages suffered. 36 Am J2d Forf & P § 2. A statutory penalty which an individual is allowed to recover against a wrongdoer as a satisfaction for the wrong or injury suffered, without reference to the actual damage sustained. Nordling v Johnston, 205 Or 315, 283 P2d 420, 48 ALR2d 1369. An agreement to pay a stipulated sum on a breach of contract, irrespective of the damage sustained. A sum inserted in a contract, not as the measure of compensation for a breach, but rather as a punishment for default, or by way of security for actual damages which may be sustained by reason of nonperformance, and involving the idea of punishment. Management, Inc. v Schassberger, 39 Wash 2d 321, 235 P2d 293. An additional payment for a privilege such as that of payment of principal prior to due date. Anno: 70 ALR2d 1334.