Practice question
A contract imposes a penalty for failure to complete a project. The debtor partially performs a substantial identified portion but leaves the rest undone. The creditor seeks the full penalty as untouchable merely because it was agreed. Which rule is relevant?
- Article 1229 requires equitable reduction for partial or irregular compliance
- Every agreed penalty is immune from the statute
- Partial performance automatically erases every consequence
- Reduction must always equal exactly fifty percent
- A penalty can be changed only by the creditor's permission
Legal references
- Civil Code Articles 1228–1229, 2216 and 2226–2228: https://lawphil.net/statutes/repacts/ra1949/ra_386_1949.html
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