Definition, Meaning & Synonyms
in-terrorem clause
noun
(in-ˈter-ə-ˌrem)
Definition
A clause in a contract that serves as a warning or deterrent, typically indicating that a party may face negative consequences for certain actions.
Examples
- The lease contained an in-terrorem clause that imposed heavy fines for late payments.
- In-terrorem clauses are often included in contracts to encourage compliance.
Meaning
The term ‘in-terrorem clause’ refers to a provision meant to prevent a party from acting in a way that could harm the interests of another party by threatening legal action or other consequences.
Synonyms
- deterrent clause
- warning clause
- penalty clause
