Penalty Clause

Penalty Clause

Definition

An unenforceable contract provision that specifies a punishment for a breach. In the wills and trusts context, a penalty clause, also known as a no-contest clause, penalizes an interested party for contesting the will or trust, usually by barring that person from inheriting or taking under the will or trust. Many states prohibit penalty clauses to avoid discouraging interested parties from challenging the validity of suspect wills and trusts.

Get full access FREE

With a 7-Day free trial membership
Here's why 742,000 law students have relied on our key terms:
  • A complete online legal dictionary of law terms and legal definitions
  • Over 7,900 key terms written in plain English to help you not only understand the law but master it
  • The premier online law dictionary built specifically for law students
  • Easy access in class or on the go, accessible both online and through the Quimbee mobile app
  • Reliable - written by legal professors and practitioners
  • Get instant access to all related rules of law to any specific key term with a Quimbee Study Aid plan

Get full access FREE

With a 7-Day free trial membership