Philippine Bar review · Question

Practice question: Liquidated Damages

Multiple Choice Easy

Practice question

Absent a contrary stipulation, what does the Article 1226 penalty ordinarily substitute for upon noncompliance?
  1. Indemnity for damages and payment of interests
  2. The existence of the principal obligation itself
  3. Every criminal penalty
  4. The creditor’s ownership of unrelated property
  5. A new donation agreement

Legal references

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

Answer this question in flashcards to review your response and continue practicing.