Philippine Bar review · Question

Practice question: Liquidated Damages

Multiple Choice Hard

Practice question

A creditor elects fulfillment. Performance subsequently becomes impossible without the creditor’s fault. The debtor invokes the earlier election to deny any penalty under Article 1227. What statutory qualification applies?
  1. The creditor loses every remedy automatically
  2. The penalty may be enforced in the stated subsequent-impossibility situation
  3. The penalty can never follow an election of fulfillment
  4. Creditor fault is conclusively presumed
  5. The principal becomes a donation

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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