term:

Penalty

penalty n

pl: -ties
1 : a punishment that is imposed on a wrongdoer by statute or judicial decision
2 : a pecuniary sum that by agreement is to be paid by a party who fails to fulfill an obligation to another and that is punitive rather than compensatory [the court declined to enforce the contractual and determined actual damages instead]

Source: Merriam-Webster's Dictionary of Law ©1996. Merriam-Webster, Incorporated. Published under license with Merriam-Webster, Incorporated.