GlossaryEN1 min readUpdated: Jun 26, 2026

penalty clause

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Last updated: 26 June 2026Published: 27 January 2026

Source: https://de.wikipedia.org/wiki/Vertragsstrafe

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Logistics Concept

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Definition & Explanation

A penalty clause is a contractual provision stipulating a pre-agreed sum payable if one party fails to perform, performs defectively, or delivers late – without requiring the creditor to prove actual loss. In freight forwarding and logistics contracts, such clauses typically address delivery deadlines, exclusivity obligations, or service quality standards. They make the financial consequences of non-performance predictable from the outset and remove the need for complex damage calculations in dispute proceedings. Courts may reduce an excessively high penalty if it is grossly disproportionate to the actual harm suffered. Unlike a liability cap, a penalty clause does not require the creditor to mitigate its loss before claiming.

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