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From Webster's Revised Unabridged Dictionary (1913) : [ web1913 ]
Penalty \Pe"nal*ty\, n.; pl. Penalties. [F. p['e]nalit['e]. See Penal.] 1. Penal retribution; punishment for crime or offense; the suffering in person or property which is annexed by law or judicial decision to the commission of a crime, offense, or trespass. Death is the penalty imposed. --Milton. 2. The suffering, or the sum to be forfeited, to which a person subjects himself by covenant or agreement, in case of nonfulfillment of stipulations; forfeiture; fine. The penalty and forfeit of my bond. --Shak. 3. A handicap. [Sporting Cant] Note: The term penalty is in law mostly applied to a pecuniary punishment. Bill of pains and penalties. See under Bill. On, or Under, penalty of, on pain of; with exposure to the penalty of, in case of transgression.