Bill Penal Law and Legal Definition

The term Bill Penal refers to a written obligation or a contract by which a debtor who is indebted for a certain sum acknowledges him/her indebted for a larger sum. S/he binds himself/herself to a larger sum as penalty. Bill penal is not common now as bonds with conditions have outdated them. Bill penal is same as bills obligatory but every bill obligatory is not a bill penal.