Philippine Bar review · Question

Practice question: Liquidated Damages

Multiple Choice Medium

Practice question

A principal obligation is declared void. The creditor nevertheless seeks its accessory contractual penalty as if Article 1230 preserves it independently. What is the result under that article?
  1. The void principal becomes valid through the penalty
  2. The penalty always survives every void principal
  3. The penalty automatically doubles
  4. Only the debtor’s age matters
  5. Nullity of the principal carries nullity of the penal clause

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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