What is the legal effect of a penalty clause stipulated in a contract upon a party's breach of its obligations?
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Radiif AI Legal Assistant
⚡ Quick Answer:
Upon a party's breach of its contractual obligations, the other party becomes entitled to the value of the penalty clause stipulated in the contract, once the breach is established.
Legal References & Citations
حكم الدائرة الابتدائية بإلزام المدعى عليها بدفع مبلغ (١.٠٠٠.٠٠٠) مليون ريال قيمة الشرط الجزائي
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