Philippine Bar review · Question

Practice question: Liquidated Damages

Multiple Choice Easy

Practice question

Does nullity of the penal clause automatically nullify an otherwise valid principal obligation?
  1. Yes, every related promise is void
  2. Yes, always
  3. No
  4. Yes, the creditor becomes the debtor
  5. Yes, the contract becomes a gift

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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