Difference Between Fine and Penalty

【Abstract】A fine connotes something specific while a penalty is more generic innature and thus can encompass a number of things. Fine is mostly used in a criminal law context and motor traffic related offences while penalty can be found in both civil and criminal law, and encompasses both monetary and physical forms of punishment. To put it simply, a fine falls within the purview of penalty and thus constitutes one type of penalty or punishment.

Fine vs Penalty

Identifying the difference between Fine and Penalty is not complex. Although the terms are sometimes used synonymously, they do not constitute one and the same thing. A fine connotes something specific while a penalty is more generic in nature and thus can encompass a number ofthings. Let’s take a look at their definitions before distinguishing the two terms.

What is a Fine?

A fine refers to a monetary charge or payment imposed upon a person who has been convicted of a crime or an offence ofa minor degree. It is mostly used in a criminal law context wherein a court of law will punish a person convicted of a crime by imposing afine. The Court will sentence a fine depending on the nature of the case and the crime committed. Likewise, the court will determine the amount of thefine depending on the type of crime and its severity. For example, if a person is found guilty of either theft or fraud, the court may sentence that person to a term of imprisonment aswell as impose the payment of a fine. Therefore, fines may be imposed inaddition to imprisonment, probation, communityservice, or other forms of punishment. The concept of afine is frequently seen in motor traffic related offences wherein people pay Fines as a result of breaking one or more traffic laws. Examples of this include exceeding the speed limit or driving under the influence of alcohol. AFine is thus a monetary punishment imposed on a person convicted of committing a crime.

Exceeding the speed limit results in a fine

What is a Penalty?

As mentioned earlier, penalty is a generic term and refers to punishment.This punishment can take various forms including the payment of a fine.Thus, a fine comes within the definition of a penalty. In law, a penalty is defined as a punitive measure that the law imposes for theperformance of an act or for the failure to perform a certain act. A penalty can be found in both civil and criminal law,and encompasses both monetary and physical forms of punishment. Inordinary parlance, however, penalty is often used in reference to a financialor pecuniary punishment. In addition to fines, a penalty also refers to other forms of punishment such as imprisonment. It is typically imposed on persons who violate the law. In a civil law context, a penalty may be imposed inrelation to contracts. Thus, if a party fails to perform a condition in the contract, such as when the contracthas not been completed by the agreed date or a certain amount has not been paidby a particular date, a penalty will be imposed. Such penalties may be in theform of an additional charge or even damages, which will bepaid in the event of a breach of contract. In certain instances in criminallaw, a penalty may also be in the form of a forfeiture of property as ordered by the court. Thus, the person convicted of an offence will lose his/her rightsand interests in the property as stipulated by the court.

Not following the conditions in a contract results in penalty

What is the difference between Fine and Penalty?

The difference between a Fine and Penalty is thus simple to identify. A fine falls within the purview of penalty and thus constitutes one type of penalty or punishment.

• Definition of Fine and Penalty:

• A fine refers to a monetary charge or payment imposed upon a person whohas been convicted of a crime or minor offence.

• A penalty refers to a punitive measure that the law imposes for the performance of an act or for the failure to perform a certain act.

• Concept of Fine and Penalty:

• The Court will determine the amount of the fine depending on the type ofcrime and its severity. Fines may be imposed in addition to imprisonment, probation,community service or other forms of punishment.

• A penalty includes fines, imprisonment and other forms of punishment. Itis typically imposed on persons who violate the law. In a civil law context, itmay be imposed in relation to contracts. Thus, if a party fails to perform acondition in the contract, such as when the contract has not been completed bythe agreed date or a certain amount has not been paid by a particular date, a penalty will be imposed.

• Application:

• Fine is mostly used in a criminal law context wherein a court of law willpunish a person convicted of a crime by imposing a fine.

• Penalty can be found in both civil and criminal law, and encompassesboth monetary and physical forms of punishment. However, it is generally usedin reference to a financial or pecuniary punishment.

• Examples of Fine and Penalty:

• Examples of a fine include exceeding the speed limit or driving under theinfluence of alcohol.

• Examples of penalties include payment of an additional charge in the event a party fails to perform a condition in the contract or payment of afine.