penalty for breach of contract; forfeit
A sum of money paid as compensation when a contract is broken. Used in legal, business, and everyday contexts.
If you cancel the contract, a penalty fee will be charged.
He broke his apartment lease early and paid a penalty.
penalty clause; breach of contract clause
Compound of 違約 (breach of contract) + 金 (money). The exact historical derivation is uncertain, but the term follows standard Sino-Japanese word formation.