Philippine Bar review · Question

Practice question: Liquidated Damages

Multiple Choice Medium

Practice question

A buyer demands both specific fulfillment and a penalty under a clause that does not clearly grant cumulative relief. No Article 1227 impossibility qualification applies. What rule matters?
  1. The debtor can dictate any price
  2. Both remedies are automatically cumulative
  3. A penalty always extinguishes performance
  4. The creditor cannot demand both at the same time unless that right was clearly granted
  5. The creditor needs no contractual right to cumulative relief

Legal references

  • Civil Code, Articles 1226-1230, 1701-1703, 2224-2235: https://lawphil.net/statutes/repacts/ra1949/ra_386_1949.html

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