There are multiple definitions - click on the translation that matches your context.

cláusula penal

substantivo

full

penalty clause

noun

Comparative law notes

Portugal

There seems to be no consensus among Brazilian legal scholars as to the purpose of the "cláusula penal" under Brazilian law. While some argue that is a preliquidation of the damages to be paid in the event of breach (similar in meaning to "liquidated damages clause"), others defend that it is a way of punishing the breaching party and compelling performance of the obligation (similar in meaning to "penalty clause").

Definitions of penalty clause

English

a contract clause that imposes a type of punishment, often involving paying money, if the contract is not performed according to its terms

Calling a public inquiry will result in a significant delay, which could cost the council money in penalty clauses.